Should You Put Your Pension Savings Into a Fixed Deposit?
You have just retired and have received your pension money. Now the dilemma that you are facing is where to put the pension payout money so that it could give better returns?
If you are one of those senior citizens who have recently received their interest payout recently and looking for a prudent investment plan to give fixed profits can opt for an FD.
Why is a fixed deposit account better option to grow your pension payout?
A fixed deposit scheme is a risk-free investment plan which gives a sure-shot profit, and that’s what it makes it a great mode to invest for senior citizens. Why? It is because an FD or a senior citizen fixed deposit returns or ROI is not impacted by market fluctuations in mutual funds, stocks, equities and more.
This feature of the senior citizen fixed deposit makes it a winner. Let’s provide you some vital features or benefits of a senior citizen fixed deposit scheme.
- Higher interest gains
As compared to standard citizens, senior citizens are given more dividends in terms of interest gains. As compared to standard citizens, senior citizens get an additional 0.25% interest gains. Hence, senior citizens can expect to gain a fixed higher FD interest profits which are capped at 8.10%.
- Minimum investment
You don’t have to put in a higher amount while subscribing to a senior citizen fixed deposit scheme. Yes, you can begin an FD investment for as little as Rs.25,000.
- You get flexible tenor
Leading online non-banking finance companies (NBFCs) lets you choose a senior citizen fixed deposit tenor ranging between 1 year and 5 years. The longer the tenor, the higher the interest gains you will get.
- Assured profits
As discussed earlier, the interest gains of a senior citizen fixed deposit scheme is fixed as it’s not affected by conditions of the market, unlike some leading investment options.
- Facility to avail a loan against FD
Did you know that you can avail a facility of a loan against your senior citizen fixed deposit amount? Yes, lenders can let you apply for a loan against your FD, and like that, your need for money in a crisis is well covered. What’s more, you also escape breaking the FD, paying the penalty charges for a premature withdrawal and sacrificing the interest that you were slated to gain.
The Bottom Line
You just saw how a senior citizen fixed deposit scheme can help you outgrow your pension payout as it has so many benefits going for it. You don’t have to visit a service provider physically these days as you can apply online.
Once you apply online, you need not do anything as rest of the formalities is completed by an agent or the representative of an FD company. Let your pension payout outgrow in years with an FD so that you get to enjoy your later phases of the retired life with élan.
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