How to Plan your Retirement with Fixed Deposit Schemes?

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Fixed Deposits are one such investing instrument which can be opened by an individual of any age. It has no age restrictions and anyone from a youngster to a retired one can open it. As you retire, you are constantly looking for a regular source of income to meet your daily expenses. Some people have saved their money in savings accounts for various purposes like for their children’s education or even fulfilling their dreams of travelling. You can double your savings by converting your savings account to a Fixed Deposit. As compared to savings account, FDs have a higher interest rate of 6.75%. Moreover, compared to banks, NBFCs offer an even higher FD interest rate in India of up to 8 to 9%.

NBFCs like Bajaj Finance offer an interest rate from 8.75% – 9.10% when you open a FD with them. You have the option for choosing your preferred tenor between 12 months to 60 months along with a special tenor scheme of 15 months with an additional rate of 0.255% over the base rate. Similar to the FDs, there are various senior citizens’ schemes which offer same features as an FD. While you have one of the safest options after retirement in the form of FD, there are some other options too in which you can invest.

Different Options for Retired Individuals

  • You can invest in Fixed Maturity Plans (FMPs) which have a fixed maturity date and are closed-ended debt schemes. These contain a certain amount of risks as they are attached to high-rated corporate bonds. However, they promise assured returns even in the rise and fall of market trends as compared to other instruments. Moreover, when you invest in an FMP, you can diversify your investments by investing them in FDs. Since FMPs are offered by mutual fund companies, opening a FD with NBFCs can be an excellent option.
  • Post Office Monthly Income Plans is another investment option which currently offers an interest rate of 7.7%. The period of maturity in such instruments is five years and the maximum amount that you can invest in them is 4.5 Lakhs. If you want to open a joint account, your investment amount gets doubled up to 9 Lakhs.
  • Monthly Income Plans is considered to be a low risk scheme and is linked to debt funds. It also offers you liquidity benefits along with secure returns. The retirees who are earning an income on monthly or quarterly basis, can opt for this option to gain good capital gains.
  • National Pension System is a scheme started by the Government for building a sufficient corpus while they are earning. When an individual retires, he/she can withdraw up to 60% of the amount he has invested in lump sum. The remaining amount which comes to 40% can be used as annuity. Moreover, since this is a government backed scheme, there are tax benefits up to Rs. 50000.

Invest in Fixed Deposits as A Safe Investment Option

NBFCs like Bajaj Finance have various Fixed Deposit benefits for their customers. You have the option to open a cumulative or a non-cumulative FD with exciting interest rates. Moreover, as a senior citizen, you get an additional 0.35% interest rate over the base rate. FDs also give you the option to divide your money in multiple FDs to keep earning higher interest on each of them. There is also an option to open a tax-saving FD which has a lock-in period of five years and provide great tax benefits. Moreover, you can open an FD with Bajaj Finance with an amount as low as Rs. 25000. You can easily calculate your interest rates, earnings and maturity amount by using a FD Interest rate Calculator on our website.