When looking for an investment that promises returns and carries low risk, a fixed deposit is the first option that comes to mind. Since most financial institutions offer better interest rates on fixed deposit for senior citizens, they are especially useful for securing your post-retirement finances.
Considering the recent dip in the repo rate, it makes sense to capitalise on current fixed deposit rates before they change. If these reasons aren’t enough proof as to why you should invest in fixed deposits, take a look at 5 more that are sure to convince you.
Earn assured returns
Investing in options that provide assured returns will make you financially self-reliant post retirement. Since fixed deposits aren’t linked to the market, they carry little to no risk and you can be sure of receiving returns. This way you can brush off any investment worries that you have and dedicate your time to doing things that you enjoy.
Fixed Deposit for Senior Citizen is your best bet as it is one of India’s leading fixed deposit schemes with high, assured returns. With a low minimum investment amount of Rs.25,000, you can avail of 9.10% interest on a 36-month FD, with interest payable at maturity.
Enjoy stability with your FD investment
An essential factor when making an investment post retirement is the risk. At this stage, it’s best to choose investments that offer you the highest returns in exchange for the lowest risk. Therefore, apart from the interest rate, you must also look into the FD’s credit ratings, as this indicates how reliable the FD is. CRISIL and ICRA have both given the Multiple Finance’s Fixed Deposit for Senior Citizens the highest rating, which means that you can be sure of receiving the amount due to you, on time.
Choose a payout frequency as per your needs
You can also use your fixed deposit for senior citizens to receive funds on a regular basis, as per a frequency of your choice. These funds are known as interest payouts and you can access them monthly, quarterly, half-yearly, or annually, as per your needs. When you choose this option, you can use the payout as a substitute to a salary and ensure that you have the necessary finance for all your expenses.
Start an FD with ease
An investment’s worth is also determined by how easy it is to apply for and manage. Remember that as a senior citizen you get access to a higher interest rate, so first use the fixed deposit Interest Rate calculator to compute your maturity sum in advance. Then, apply online by visiting the website and filling a short form.
Get a loan if you require liquidity
When you invest in a senior citizen FD, you can use it as collateral and apply for a loan if you need finance in an emergency. This option generally offers up to 90% of your investment as a loan. With it you can get the liquidity you seek, while keeping your investment intact. Additionally, you can also prematurely withdraw your FD by paying a small fee or penalty.
Since financial security is the key to a happy, fulfilling life post retirement, making the right investment decisions is imperative.