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Fixed deposits are not only a preferred investment tool for those who are still employed but for those retired as well. Even though they might not be working, retired individuals not only want good returns on their accumulated corpus but also want to maximize their earnings. Market-related instruments are riddled with volatility which is why senior citizens should prefer to park their money in a safe and secure option such as senior citizen fixed deposit in India

Let us see what advantages an FD investment offers to those above 60 years of age:

1. Higher rate of interest:

Bajaj Finance FD offers high senior citizen fixed deposit interest rates up to 8.05% to those aged 60 and above for an FD with a tenor of 4-5 years. Senior citizen FD rates are 0.25% higher than regular FD rates. Not only this, if they renew the FD, they can get an additional 0.10% interest on the subsequent deposit. Returns are guaranteed and carry no risk as compared to other investment options which are influenced by fluctuations in the market and hence are riskier.

2. Security and safety:

Senior Citizen FD from Bajaj Finance is ranked MAAA (stable) by ICRA and FAAA/Stable by CRISL. These are the highest ratings given by ICRA and CRISIL respectively; confirming the credibility of the investment. This means that your hard-earned life savings are secure when you open an FD as a senior citizen with Bajaj Finance. The maturity amount is assured and you can enjoy your retired life comfortably without any risk of erosion by market movements or default.

3. Get regular income:

Fixed deposits fall into two categories- cumulative in which interest is compounded annually and non-cumulative in which you can opt for monthly, half-yearly or quarterly payout as per your preference. Senior citizen fixed deposit interest rates are different for each. With a non-cumulative FD, retirees can opt for regular monthly payouts to take care of their day to day needs a well as medical and health care requirements. Opting for cumulative FD is a good choice to multiply your savings while ensuring your PF corpus stays intact.

4. Ease of investment:

With the Systematic Deposit Plan, you can invest in an FD with small monthly deposits, ranging from 6 to 48, in 5-year duration. These deposits can start from Rs. 5000 per month and help you invest your monthly savings efficiently with the help of an NACH mandate. The entire application process is online which not only saves time but also relieves you of lengthy paperwork so that you can conveniently open a senior citizen FD without any hassle.

5. Comparing returns before investing:

As a senior citizen, it is important to be aware about the returns your investments will bring in so that you can plan your finances better. You might want to know the returns on your investments as per various senior citizen fixed deposit interest rates over different tenures. Various lenders have the provision for online FD calculator on their websites to help you know the exact maturity amount so that you can decide how much you want to invest to meet a certain specific goal, such as marriage of your kids. Simply enter different investment amounts and duration for which you would want to open an FD and compare the returns that you can get in the future.

You can start investing in senior citizen fixed deposit in India with the prevailing high interest rates as the economy is going through a tough time and further rate cuts are anticipated.

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