Higher FD rates by Bajaj Finance can help senior citizens fight the volatile market
3 min read 21 Mar 2023, 11:12 AM ISTThe interest rates on Bajaj Finance FD usually start from 7.40% and can extend up to 8.20% p.a.
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Inrecent times, the annual consumer price inflation in India has increased. This indicates that there is a gradual rise in costs, resulting in the devaluation of savings over time. The most notable effect of this change can be observed on retirees due to their decrease in purchasing power after retirement.
Also, retirement-aged individuals usually spend their savings on goods and services like food, housing and medicines that are immensely affected by inflation. This creates an immediate requirement for strategic retirement planning to stay a step ahead of inflation.
Investment mix to fight inflation
After retirement individuals often face a sudden financial crunch due to evaporation of a regular source of income. Hence, to fill the gaps, a steady inflow of cash becomes a primary requirement of retirees and wealth creation usually slips to the secondary position. This is why, post-retirement, individuals often prefer schemes that offer stable returns.
FD as a low-risk investment option for senior citizens
There are several low-risk investment options like fixed deposit that generate stable returns over a longer tenure. The interest rates on Bajaj Finance FD usually start from 7.40% and can extend up to 8.20% p.a. For these reasons, FDs have become one of the choicest investment options among retired individuals.
Some advantages of FD investments are as follows:
- Stable interest rates: The FD rates usually remain constant throughout the tenure of investment. Thus, investors can ensure to generate a stable source of income by depositing their savings in FDs. This helps them to plan their finances well to fight the rising costs.
- Customised payout options: Investors have the flexibility of customising the payout option at their convenience. They can go for monthly, quarterly, half-yearly or yearly payouts which provide them with additional funds. This extra money can help them meet lifestyle expenses during inflation.
- High Safety: The fixed deposit by Bajaj Finance has the highest credit rating of [ICRA]AAA(Stable), indicating the highest level of safety and lowest investment risk. BFL FDs have also a rating of CRISIL AAA/ STABLE which is another reason to invest.
Interested individuals can now follow a completely paperless process to book an FD. They will just have to fill an online FD application form accurately and transfer the amount, to begin their investment journey. Furthermore, there are several strategies that investors can follow to ensure maximum returns after retirement.
Ways to maximise FD returns for senior citizens
There are a variety of strategies that investors can adopt to maximise their returns from FDs. These are as follows:
- Selecting longer tenure: Going for longer tenure for fixed deposit investments can notably increase the interest rates and subsequently the returns.
Below is an example where a senior citizen invests Rs. 5,00,000 for different tenure. Here is how much they will receive at the end of their chosen tenure. (w.e.f 4 March, 2023)
- Opting special tenures: Financial institutions like Bajaj Finance offer increased interest rates on special tenures such as 15, 18, 22, 30, 33, 39, and 44 months.
Here is a table reflecting the interest rate fluctuation due to the above factors.
Investors can estimate their returns prior to investment using an online FD calculator. Apart from FDs, investors can deposit their money in other low-risk options as well for generous returns.
- Small monthly investments
The Bajaj Finance Fixed Deposit offers a Systematic Deposit Plan (SDP) function that enables you to make periodic investments in FDs rather than a lump sum investment. The interest rate for each FD you initiate will be based on the prevailing FD rates, enabling you to commence your wealth-building journey without putting undue pressure on your finances. With the Bajaj Finance SDP, you may start investing with as little as Rs. 5,000 per month.
In conclusion, investing with Bajaj Finance senior citizen FDs is a smart choice for senior citizens who are looking for a safe and secure investment option with high returns. These FDs offer a higher interest rate compared to regular FDs.
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