Market volatilities pose risk of capital depreciation in market-linked instruments, which is not a preferred measure by senior citizens with low risk appetite.
With the Reserve Bank of India’s announcements to boost liquidity and ease financial stress, financiers wouldn’t need to increase rates on conventional options like savings accounts or deposit rates. Leading banks have reduced their deposit rates several times and FD interest rates are averaging below 6% during these times.
Additionally, the government had slashed interest on PPF, NSC, and other small savings schemes by 70 to 140 basis points for April-June quarter. While the change in these rates was imperative, the time of the rate cut has not been conducive for investors facing the prospect of shrinking, unstable incomes. Unfortunately, senior citizens have been hit the hardest, by these events.
Why senior citizens need assured returns?
Market volatilities pose risk of capital depreciation in market-linked instruments, which is not a preferred measure by senior citizens with low risk appetite. Post-retirement, senior citizens face the end of their regular incomes, which warrants safe investments to help them finance their post-retirement expenses.
Thus, they need inflation-beating interest rates of more than 7%, which can be availed by investing in a Bajaj Finance Senior Citizen Fixed Deposit. Here, you can get attractive FD interest rates, flexible tenures and multiple payout options, which make it an ideal investment for senior citizens.
Read these 5 reasons to know why senior citizens must choose Bajaj Finance FD to grow their savings.
Highest safety and assured returns
Senior citizens looking to grow their savings with assured returns can invest in a Bajaj Finance Fixed Deposit, which has the highest safety ratings of FAAA by CRISIL and MAAA by ICRA. Since these ratings indicate safety and credibility, senior citizens can rest assured that their principal and returns are in safe hands. They can hence, expect to receive their maturity proceeds on time.
With a clientele of more than 2,35,000 unique FD customers and a deposit book of 20,805 crores, Bajaj Finance is one of the most trusted FD issuers. More than 90,000 of these customers are senior citizens contribute towards a deposit book of more than 6200 crores. These numbers indicate the highest level of trust reposed by customers, in this deposit.
NRIs seeking safe investment avenues can also consider investing in NRI Fixed Deposit, if they have NRO accounts.
Higher interest rate for senior citizens
Even amid falling interest rates, senior citizens can get 0.25% higher interest rate. And, depending on the tenor you choose, as a senior citizen investor, you can earn interest of up to 7.85%. Here’s a snapshot of how much you stand to gain by choosing varied tenors.
To multiply your returns further, you can choose auto-renewal facility when applying for an FD. This way, on maturity, your proceeds will be reinvested and this will allow you to earn an additional interest rate of 0.10% on the prevailing rates.
Fund regular expenses with periodic interest payouts
For senior citizens looking to fund regular expenses without using up their savings, Bajaj Finance offers the option to get interest payouts on a periodic basis. Using FD Calculator monthly interest can also be determined easily.
To understand this better, let’s assume a senior citizen invests Rs. 50,00,000 in a Bajaj Finance Fixed Deposit for 5 years. Here’s a look at their interest payouts on a periodic basis.
From the above table, you can see that on choosing a monthly interest payout option, senior citizens can get Rs. 31,583 each month to fund their regular expenses. On choosing quarterly, half-yearly and annual payouts, the interest rate is higher.
On choosing these periodic interest payouts, you keep earning regular interest and at maturity, you can get your principal amount. You can renew your deposit to continue reaping the benefits of periodic interest payouts, and to gain additional 0.10% on your deposit.
Thus, you can preserve your savings and fund your expenses without having to liquidate those. Further, you can invest in an FD payable at maturity to fund big-ticket expenses like your children’s wedding, prepayment of a home loan, and so on.
Convenience of investing
During the current times, the flexibility to invest from the comfort of homes is much-needed. Bajaj Finance offers the convenience of easy online fixed deposit to existing customers, who can enjoy a paperless online process, within a few minutes. New customers can also opt for contactless deposits by Bajaj Finance, or opt for easy document collection from home.
You can also choose the tenor as per your convenience and use the FD interest rates calculator to determine your investments easily. These features make Bajaj Finance FD one of the best investment avenues for senior citizens, who can look to grow their savings easily. In case of emergencies, you can also opt for an easy Loan against Fixed Deposit that helps you fund your expenses easily without having to liquidate your savings.
Disclaimer: This content is distributed by Bajaj Finserv. No HT Group journalist is involved in the creation of this content.