As a hardworking individual, you look forward to spending your retirement period in peace. You want to snap the threads with yourself and loved ones you lost years ago due to the hassles of everyday life. Several changes follow as you retire. Your status changes to a senior citizen. Though you may not like being called a senior citizen, you are entitled to several benefits you should surely make the most of.
As a senior citizen, you should have a solid financial hold. You no longer receive a pay cheque to meet your monthly expenses and would not want to rely on your children. Making suitable investments is beneficial here. They secure your money and keep it working. Fixed Deposit is the finest investment option to consider. Here are why FDs are an excellent investment option for senior citizens:
Simple and secure
FDs are a simple investment option. You only need to make a one-time lumpsum investment. Your investment earns you reasonable interest returns throughout your tenure. Furthermore, FDs are a secure investment option. It is not linked to any market standing. Hence, you need not worry about risking your principal investment and earning returns. Given this, it is also easy to manage.
Higher interest rates
As per the RBI guidelines, higher Fixed Deposits interest ratesare extended to senior citizens. This is done considering that investments are typically the only source of income for senior citizen investors. This ensures that you, as an investor, get a decent sum in hand. Note that the FD interest rate differs between banks. You should explore the market and compare all options to get the best deal.
Reasonable regular income
FDs are of two types: non-cumulative and cumulative. In a Cumulative FD, your interest earnings get added to the principal investment, reaping you higher returns. In a Non-Cumulative FD, you receive your interest earnings periodically. By opting for the latter, you receive a reasonable regular income that you can use to meet your monthly expenses.
If you want to determine the total investment returns, use the FD calculator. It is an online tool that instantly provides accurate results of your investment returns.
Loan facility
A sudden expense need could arise at any time. You may be tempted to break your FD to meet it. But as a senior citizen doing so may not be the wisest option as it is the only significant sum you may have. Instead, you should apply for a Loan against your FD. This way, you can keep your investment intact and meet your financial requirement.
You can also apply for a Loan against FD via the Banking App within minutes. Upon approval, the Loan amount gets credited to your account immediately.