Retirement is a time to relax and enjoy and to make the most of your free time. However, it can be bad if you have to remain financially dependent on someone or the job you just got retired from. To save you from such hassles you can start investing early in investment options made for retirees.
Public Provident Fund or PPF
Initiated by the government the scheme is designed to help people planning their retirement save on a regular basis.the minimum investment can be Rs. 500 which is deposited in 12 instalments. While, the maximum investment amount is Rs. 1.5 lakhs with tax exemption benefits under Section 80C of the Income Tax Act. besides, the interest earned at the time of maturity of the deposit remain tax-free.
The PPF comes with a lock-in period of 15 years an it can be closed in case of untimely death of the account holder. However, in case of financial urgency you can make one withdrawal per annum or withdraw up to 50% of the invested amount by the 5th year of the investment. Additionally, you can apply for loan before the 7th year of investment, up to 25% of the investment.
Fixed Deposit After the completion of the lock-in period you can invest the Provident Fund amount in fixed deposit of any leading NBFC. the reason being this kind of investment will offer higher return due to interest rate starting from - 8.75% onward, flexible lock-in period from 12 to 60 months, irrespective of the market fluctuations. You can easily book an FD online with minimum paperwork for yourself or for your family members. The process does not take long and lets you book the FD with just Rs. 25,000. You may use the FD calculator available online to evaluate returns on your investment and to make the most of your investment. Also, Read Related Article: Why you should consider investing in a PPF for your retirement?
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8/1/2022 06:10:21 pm
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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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