“The fallacy about the old men and their wisdom is that they do not grow wise. They grow careful.”
– Ernest Hemingway
Old age is a time when you harvest the fruits that you had sown when you were young, and to finally take a backseat from responsibilities. Retirement is something inevitable, which you have to plan for eventually. Going into retirement does not mean that your expenses will reduce, but it’s altogether an opposite scenario. Prices of everyday items and all other things rise continuously, and your medical expenditure might also increase if you develop diabetes, blood pressure, heart conditions or any other diseases. Regardless of the fact that you receive pension or not, you should consider having an extra income to support the increasing expenses during your old age.
There are very few options in which you can have an income in your old age, but if you genuinely desire to retire successfully, you have to plan from a very early stage. Investing from an early stage can ensure that you have enough funds during retirement.
While you have different options like mutual fund investments and debentures, you would want to prefer an investment option that will provide you steady and high returns with security. FDs can solve these problems efficiently by safely setting aside a part of your income for future benefits.
What are Fixed Deposits?
Fixed Deposits are a rewarding option among financial investment opportunities provided by Banks and Non-Banking Financial Companies (NBFCs) that are focused explicitly towards maximizing your returns. To invest in an FD, you can set aside an amount from your savings and deposit it with the bank or NBFC, on the condition that your money will be returned with the applicable Fixed Deposit Interest Rate and within a set time.
The investment made in FDs can be of a short span (7 days) and also up to 10 years. Moreover, the FD interest rate increases as the tenure of your deposit extends (i.e. for a tenure of 5 years, you will be provided the highest interest rate of 8.75%). You can plan your fixed deposit investment by using FD Calculator to know precisely how much returns you can avail by the end of the term.
Why are Fixed Deposits Best for Retirement Plans?
The best investments for retirement are the ones that can provide high returns while ensuring the safety of your finances. Moreover, Fixed Deposits can be quickly turned into cash if there is any emergency. However, limited interest benefits can be availed if fixed deposit amount is prematurely withdrawn. For instance, if a 5-year fixed deposit is withdrawn after a year, the account holder will receive the interest amount of 1 year. Additionally, fixed deposits are easy to plan and manage for future because they provide fixed returns without any risk, through which you can finance any future expenses.
Age like Wine with Bajaj Finance
While fixed deposit investments provided by all financial companies are similar, you should look for the one that has benefits customized to suit you in the best way possible. Bajaj Finance provides you the highest FD interest rate in the market if you are a senior citizen, that is 8.75%. The initial deposit amount can be as low as INR 25,000, and you can adjust the tenure from 1 year to 5 years. Furthermore, Bajaj Finance makes it very convenient to invest in FDs as the complete process can be done online. You don’t need to be concerned about stability with fixed deposits as Bajaj Finance FD has been given ‘stable’ ratings by both ICRA and CRISIL, the highest safety rating in the industry. You can peacefully plan your retirement with Bajaj Finance as your financial guide.