It is wise to park your life’s savings in secure investment options at the time of retirement to help you cover unpredictable expenses later in life. Here are few options for you to consider. Post Office Monthly Income Scheme (POMIS) This is a five-year investment scheme offering a maximum cap of Rs. 9 lakhs for accounts with joint ownership and Rs. 4.5 lakhs for single ownership. Its currently offering an interest rate of 7.8% per annum which is payable annually. Its interest is set at each quarter. Senior Citizen Saving Scheme (SCSS) It is an effective and long-term saving scheme for senior citizens above 60 years of age. An investor can save a maximum of Rs. 15 lakhs singly or jointly in multiples of Rs. 1,000. The amount that is invested cannot exceed the amount that is received on retirement. Thus, the investor can invest either Rs. 15 lakhs or the amount received upon retirement whichever is lower. The lock-in period of this scheme is 5 years with the option to extend it for further 3 years with interest at 8.3%. Fixed Deposit These are a secure investment option for senior citizens as they are free from market fluctuations. Deposit offered by leading NBFCs provide higher interest rates starting from 8.40% onwards. While as a senior citizen FD you can avail 0.35% extra on this base rate. Upon renewal too, you can avail 0.25% extra on the base rate provided. This means you get - (8.40%+0.35% (add-on as per senior citizen benefit) +0.25% (add-on on renewal)) to help you maximize your savings. Know More Which are the Safest Investment Options for Retirement?
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If you are about to retire or have just retired, then you have reached the most peaceful stage of life. But, this also denotes the end of your regular income. So, you must think of a proper investment scheme that can substitute your income to help you financially after your retirement. You will find several options, and many will suggest you different options, but the best will be investing in fixed deposit, as it offers high-interest rates and reliable returns. You can even interest payment cycle as per your need. Higher interest rates- The rate of interest of senior citizen fixed deposits is higher than other normal FDs. In a bank, you will get a maximum interest rate of 7.25%, but in NBFCs you will get 8.75% interest rate to senior citizens. Safe and secured- FD interest rates are not affected by market fluctuations, so the investment is safe and fixed. Even you can get the maturity amount of FD investment, by using the FD Calculator.
Tax Benefits – A person pays income tax for an entire working life, but he/she should not pay for post-retirement income. Senior citizens can invest in tax saver FD for 5 years, then claim deduction up to Rs. 150000 under 80C of Income Tax Act, 1961. A normal FD interest is liable for Tax Deduction at Source (TDS). Unlike normal FD, the senior citizen FD returns are not liable for TDS if the interest income is lesser than 50000 p.a. u/s 80TTB of Income Tax Act, 1961. Company fixed deposit or ones offered by NBFCs and bank fixed deposit both have their own pros and cons. Let’s shed some light on them to help you make an informed choice. Ease of Booking Company fixed deposit of NBFC can be easily booked online from anywhere at anytime. The process requires minimum documentation. Using just your login credentials you can easily manage your deposit online without having to depend on lender’s representative. You may even renew it or opt for premature withdrawal via the quick and easy online portal. Easy Liquidity As mentioned earlier company deposits can be withdrawn easily online before their maturity date. The flexible tenure chosen is between 12-60 months within which the withdrawal decisions can be made. NBFC like Bajaj Finance offers special rates on tenure of 15 months, on a minimum deposit of Rs. 1,00,000 starting from 7.85% onwards. Use online FD calculator for calculating the returns of your deposit money. Ease of Diversification
Company deposits give the investor to choose between cumulative and non-cumulative deposits. Cumulative is one which provides interest at the end of the tenure while non-cumulative provides interest at monthly, quarterly, half-yearly and annual intervals to help you meet your financial needs. Assured Returns You can make considerable returns on your fixed deposit in companies like NBFCs which offer higher interest rates on FD starting from 8.40%. Moreover, you may earn top-up interest of 0.25% on base rate upon renewal. Besides, schemes like senior citizen let you earn 0.35% higher interest on base rate too. Investments are all about increasing your money within a certain stipulated period. Many of the investment options available in the market involve higher risks. Therefore, it is necessary that you invest smartly and plan your investments to get the most out of them.
In today’s volatile market conditions, it is essential to invest in schemes that provide you high returns with minimal market risks. You can also evaluate the time it takes to generate high returns. Best Low-Risk Investment Options If you are looking for best investment options that can generate decent returns at lower risks, here are a few options for you: Fixed Deposits Fixed deposits are the safest investment schemes offering guaranteed returns. Furthermore, if you choose company fixed deposits, you get the benefit of higher returns than banks. For example, when you invest in Bajaj Finance Fixed Deposits, you get stable returns with flexible tenor, and online account management. Mutual Funds Mutual Funds also help you earn higher returns. You can divide your investments into different funds across multiple companies, to benefit from portfolio diversification. Grow your mutual fund portfolio, slowly and steadily, by starting a monthly Systematic Investment Plan (SIP) starting with lower amounts. Public Provident Fund Public Provident Fund (PPF) is a tax-free government investment scheme in India. The PPF scheme was launched by the government to encourage the spirit of savings among Indian citizens. Launched in 1968, PPF is a smart investment that can save taxes. Along with saving taxes, you can also get a return of 7% per annum. Investment Options for Senior Citizens Senior citizens get the additional advantage of periodic returns that substitute their monthly income. There are a number of smart investment schemes for senior citizens that provide better returns at minimal risks. Retirement doesn’t mean that your money needs to stop growing. To prevent any high-order changes to your investment strategy, you must choose some of the best investment options to keep your money safe, and ensure stable returns. Here are a few investment options to ensure a safe retirement: Post Office Monthly Income Scheme Post Office Monthly Income Scheme (MIS) offers assured returns every month on your deposit. The period of maturity for this scheme is 5 years. The most important benefit of the Post Office MIS scheme is that it is not affected by inflation and continues to give you fixed returns. Pradhanmantri Vaya Vandana Yojana Pradhanmantri Vaya Vandana Yojana (PMVVY) for senior citizens offers guaranteed returns at 8% interest rate. Operated by Life Insurance Corporation (LIC), PMVVY is one of the most trusted smart investment schemes for senior citizens in India as it yields fixed returns along with tax benefits. Financiers like Bajaj Finance also offer higher interest rate of up to 8.75% on Fixed Deposits, for senior citizens. This makes Fixed Deposits a must-have in your investment portfolio, because of the safety, flexibility and stable returns. The returns that you can get from the individual schemes mentioned above will depend on when you start investing. If you are in your early phase, you can afford to invest in long-term investment plan according to your financial condition and how soon you want the returns. You can also consider opting for pre-approved offers by Bajaj Finserv, where all you have to do is share some basic details and your money is ready for you. Get some of the best offers on loans, cards, EMI Network and more. Check your pre-approved offer here. Fixed deposit is one of the safest investment avenues for all kinds of investors, especially if you have a low-risk appetite. Investing in fixed deposit gives you a greater control over your investment along with greater flexibility, and assured returns at maturity. However, in order to leverage from the aforementioned benefits, the first and foremost prerequisite is to choose the right FD scheme in the first place. Fixed deposit schemes offered by Bajaj Finance gives you the highest assured returns along with the highest degree of flexibility. However, you need not invest in it before knowing all the benefits associated with investing in the mentioned FD schemes.
Highest returns on investment: Fixed deposit schemes offered by Bajaj Finance comes with the highest return on investment which can range from 8.40% per annum to 8.75% per annum depending on your age, and the frequency of investment. Also, the ROI in case of a senior citizen is equally high and the same can be up to 8.75% per annum. Flexible tenors to suit your needs: The scheme comes with tenor flexibility allowing you to choose the maturity period in accordance with your needs. Fixed deposit calculator to help you plan well: The fixed deposit calculator available on the website helps you calculate the returns in advance, and plan your investment concisely and consciously. Online account management: Lastly, the online application and account management facility give you a greater and hassle-free control of your investment. You can manage your FD account using your laptop from the comfort of your home or office. |
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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