As a senior citizen, managing your finances well is important to cover monthly expenses comfortably and keep undue stress at bay. Often, pension schemes form the only source of steady income when you cross the age of 60. While this may suffice at the present, remember that with age unexpected expenses can arise without a notice. An unforeseen dental problem or unanticipated plumbing issue are examples of such events that may drain the savings you have during your golden years.
Additionally, you also have to protect your retirement fund from rising inflation rates. One way to supplement your pension earnings is by making smart investments. Since the security of your finances is a top priority at your age, choose an investment instrument that ensures stability. In this case, a fixed deposit makes for a smart choice. Here’s a look at the senior citizen FD and the benefits it offers.
As a senior citizen, you stand to benefit from higher FD interest rates than what regular customers get access to. For instance, Bajaj Finance boosts its interest rates by 0.35% for senior citizens. On a Bajaj Finance Fixed Deposit you can get an interest rate as high as 9.10% when you start an FD for at least 36 months with returns at maturity.
Benefit from a stable investment environment
Security of your finances is a top priority for senior citizens and fixed deposits give you this in a no-nonsense manner. While bank FDs involve little risk, you need to be careful before investing in a company FD. When investing with an NBFC, look for high safety ratings. For example, the Bajaj Finance FD comes with the highest ICRA rating of MAAA and the highest CRISIL rating of FAAA. Stable ratings such as these ensure that your money is in reliable hands. This means you will never have to forego your investment to volatility.
Get regular payouts to meet daily expenses
Fixed deposits give you the option of earning interest at regular intervals. By selecting your desired payout frequency, you can get financial liquidity every month, quarter, half-year or once every year. This is helpful in case you have regular expenses to meet or have to pay EMIs or healthcare bills. So, when planning to invest in a senior citizens FD, you can choose to receive regular income at a frequency you desire.
Forecast returns with an FD calculator
By using an FD calculator, you can determine exactly how much your FD will add to your retirement fund. Let’s take an example and use the Bajaj Finance FD calculator to compute your returns. Suppose you want to invest an amount of Rs.4 lakh in an FD for 40 months. When you feed these details into the calculator, it automatically adjusts the interest rate basis your chosen parameters to give you the result. In this case, you earn an interest of Rs.1,34,740 at the rate of 9.10%. So, the amount you take back at maturity is Rs.5,34,740. This easy computation helps you plan your finances with ease.
Save on taxes in FY 2019-2020
While the income tax slabs for senior citizens (60 year to less than 80 years) and super-senior citizens (80 years and above) have remained the same, the Interim Budget 2019 has made way for nil tax liability for taxable income up to Rs.5 lakh. So, if you comply with certain parameters and your earnings from all sources do not cross Rs.5 lakh you can land up paying no tax. You can also avoid TDS deductions by submitting form 15H in advance to your issuer.
Now that you have seen how fixed deposits can boost your finances considerably, start investing with an issuer that promises substantial returns like Bajaj Finance. Let’s summarise the key benefits the Bajaj Finance Fixed Deposit brings to you. The Bajaj Finance FD offers senior citizens FD interest rates of up to 9.10% while ensuring the security of your finances. Lock-in periods are flexible, ranging from 12 to 60 months, and regular interest payouts can be earned by selecting the appropriate FD type. So, boost your retirement fund today by either visiting the nearest Bajaj Finance branch or start your investment online!
Author Bio: Uday is a passionate blogger. He has expertise in writing finance articles. He has been serving society as a financial adviser. He loves keeping himself up-to-date with the news and happenings around. He is always open to learning and shares his experiences on his Greetings of the Day.