Here’s How Indians Should Secure Their Retirement With A Fixed Deposit


Retirement surely means a much more relaxed and stress-free lifestyle, but with it comes the worry of not having a stable source of income. Therefore, it is best if you sketch out a clear picture in mind on how you would want your retirement life to look.

When you are investing as a senior, limiting the risks associated with it and gaining guaranteed returns ought to be your first priority. This is especially important as only then can you protect the wealth you have earned throughout your early years. Investing in a trustworthy fixed deposit scheme that gives you the best interest rate is the best way you can stay covered. 

Fixed deposits are a popular choice of most senior Indians as they give higher returns and there is less worry of managing an FD investment. Here’s how fixed deposits can ensure a secured post-retirement life for you:

  • Higher Interest Rates for Senior Citizens: If you are a Senior Citizen, then you will get a higher interest rate than other investors. For example, Bajaj Finance offers an additional of 0.25% on the regular FD interest rate, making up to a total of 7.85% for a tenor of 5 years. There is also an auto-renewal option that allows your maturity proceeds to get re-invested. Due to this, you will see higher returns coming your way. Bajaj Finance provides an additional interest of 0.10% on selecting the auto-renewal option.

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  • FDs aid in meeting recurring and non-recurring expenses: Apart from your everyday expenses, there might be other expenditure or investments you would want to make. For example, a new property, a grand function like a wedding and so on. To stay financially independent during your senior years, you can plan beforehand and prioritize your tenor accordingly.  You can invest in multiple FDs and align the maturity timeline such that all your financial goals can be taken care of. You can choose a tenor varying from 12 to 60 months. Additionally, you can choose the interest payout frequency (monthly, quarterly, semi-annually and annually) depending upon your requirement.
  • Hassle free loan against FD: Emergencies tend to knock at your door more often in your senior years. And these could be as important as a medical situation that need to be addressed. To have you back during such occasions, Bajaj Finance lets you pledge your FD as security and benefit a credit against it. You can easily apply for a loan and secure an approval of up to Rs. 4 lakhs immediately. Through this option, you can continue with your FD without having to break or withdraw any amount so that you keep earning returns until its maturity.
  • Returns independent of market risks: This means that unlike other equities, fixed deposits have no link to the market whatsoever. This would mean that the interest rate at which you invested would remain unchanged throughout your tenor. To get a clear picture, you can use an FD interest rate calculator to view your returns before investing.

As a senior citizen, it advised that you opt for investing in an FD and fix your goals for your post retirement period. Most Indian senior citizens resort to this to earn guaranteed returns and secure their future. While post office FD interest rate ranges between 5.5% to 6.7%, with a company FD such as Bajaj Finance FD, you can earn high interest rates up to 7.85%. Also, with Bajaj Finance FD, you are assured of highly credible ratings of FAAA/Stable and MAAA/ Stable by CRISIL and ICRA respectively, to safeguard your golden years for a very long time with no risks associated. 

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