5 Factors to Consider While Choosing a Fixed Deposit Investment
Fixed Deposits (FDs) are a tried-and-tested financial investment which has been cherished by investors, especially senior citizens, seeking reliable and stable returns on their savings. Fixed Deposits are one of the most popular ways to save money and earn regular returns.
Under fixed deposits, you make a lump sum deposit for a fixed tenure at a predetermined interest rate. Thereafter, on maturity, the depositor receives a lump sum amount.
Tailored specifically for elder individuals, FDs for senior citizens are a variant of the traditional fixed deposits with higher interest rates, designed to cater to the unique financial needs of retirees. These FD schemes guarantee financial security to senior citizens and ensure much-needed peace of mind, allowing them to enjoy their retirement without worrying about financial contingencies. In this context, we will explore FDs for Senior Citizens’ rates and schemes. Know how to choose the most relevant FD scheme and how these investment schemes offer a secure and reliable pathway for senior citizens to grow their savings while enjoying a peaceful retirement.
Key Highlights
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Benefits of FD for Senior Citizens
Fixed Deposits are a cornerstone of financial stability, particularly for senior citizens. Here are the benefits of FD for Senior Citizens:
- Senior Citizen FDs offer higher interest rates than regular FDs, ensuring increased investment returns.
- Fixed Deposits guarantee predictable and fixed returns, providing a steady income flow, aiding in financial planning and supplementing retirement funds.
- Senior Citizen FDs offer multiple tenure options, allowing the investors to select the tenures which align with their financial goals.
- FDs also offer liquidity through loan facilities to meet unexpected expenses without closing the FD prematurely.
- FD's interest rates are predetermined and fixed at the time of opening the FD account. FDs remain uninfluenced by market fluctuations, making them a reliable choice for senior citizens.
- Senior Citizens can get the interest credited at regular intervals (monthly, quarterly, annually) or opt for cumulative FDs in which the interest is accumulated and reinvested and is paid on maturity along with the principal amount.
How to Choose the Most Relevant Senior Citizen FD Schemes?
When choosing the most suitable FD scheme for your retirement, it's necessary to consider several factors to ensure flexibility and financial security. Here's a smart guide on how you can make the right choice:
Affordable Investment
Start by considering and assessing your financial situation. Select an investment amount based on your convenience.
Flexible Tenure
Explore FDs offering flexible tenures and select a tenure which aligns with your retirement goals, whether long-term or short-term. Flexible tenures in FD help you to plan and meet your specific financial milestones.
Non-Cumulative vs. Cumulative FDs
Evaluate your income needs and opt for FDs. This will help you choose the most suitable type of deposit scheme, i.e., cumulative or non-cumulative. You can choose non-cumulative FDs if you require a regular income stream after retirement. In non-cumulative FDs, interest is paid regularly, securing your monthly expenses. Alternatively, if you want a lump sum amount at maturity to meet your long-term goal, opt for cumulative FDs in which the interest is reinvested and the accumulated interest is paid out on maturity in a lump sum. Shriram Finance offers cumulative and non-cumulative FDs to meet the investors' individual needs.
Interest Rates
Interest rate is one of the most crucial factors in FDs. Ensure to seek FDs with competitive rates of interest. Higher rates ensure better returns on your savings, providing substantial growth over time and helping you in retirement. Shriram Finance offers interest rates of up to 9.40%* p.a. inclusive of additional interest rate of 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors.
Ease of Investing
Consider the investment mode, too, when choosing a senior citizen FD. Online investments are suitable as senior citizens don’t have to leave their homes. They can simply invest online by filling out an online application form and depositing the amount through digital banking.
Shriram Finance allows senior citizens to invest online in its fixed deposit scheme. Simply choose the deposit details and invest online in some simple steps.
Features of Shriram Fixed Deposit
Here are some of the features of the Shriram Fixed Deposit scheme:
- Offers attractive and competitive interest rates, which vary depending on the tenure of the FD. The maximum interest rate is up to 9.40%* p.a. inclusive of additional interest rate of 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors.
- Additional interest rates for senior citizens, women depositors, and renewals
- Nomination facility for nominating a person who would be eligible to receive the deposited amount in the event of the demise of the depositor
- Offers flexibility to select the FD tenure and interest payment option which suits your needs
Conclusion
Shriram Fixed Deposit can be considered the most relevant senior citizen FD scheme as it fulfils all the parameters of an ideal FD, such as high-interest rates, flexible tenure and benefits, nomination facility, cumulative and non-cumulative options, etc. The scheme offers competitive interest rates higher than those offered by savings accounts and other fixed deposit schemes and provides additional interest rates for Senior citizens and women investors. The minimum amount for opening an FD account is as low as ₹5,000 with flexible interest payouts and options. Further, Shriram Finance Limited is a trusted name in the financial services industry, and the Shriram FD scheme offers a safe and secure investment avenue with guaranteed returns.
