Retirement marks the end of your active working years and not only do you have to let go of your regular job but also a regular source of income. It is important to opt for financing planning for seniors to maintain a certain standard of living. If you are a senior citizen, you have to minimize your risk and consider investing in something that would promise guaranteed returns, it should be your chief aim. This is the only way to safeguard the wealth you have tried so hard, all your life, to acquire. Several investment options cater to senior citizens, but if you are looking for one on which you can bet on with your eyes closed, it will be by investing in fixed deposit, the most popular one for 5 good reasons.
Senior citizens who are about to retire or those who have retired always rely on fixed deposits because of their not one but many benefits. They are deemed as the most reliable of all investments, as it is safe and gives suitable returns for senior citizens and it holds tight despite the uncertainty of the market. Other types of investments may not give the same assurance as to the fixed deposits, as they are susceptible to market fluctuations, even if you decide to add them in your investment ensure, they are not the only ones.
5 Advantages of Investing in FDs for Senior Citizens – The Best Financial Plan for Senior Citizens
A fixed deposit is what you can call a haven for your retirement as it involves minimal risk. Find out why it is your ultimate go-to when it comes to investment and why it is the ultimate financial plan for senior citizens?
- High-interest rates especially help senior citizens
Usually, fixed deposit users offer a higher interest rate to senior citizens when compared to regular investors. There are finance companies that offer an extra 0.35% on Fixed Deposit for senior citizens, which can total up to 8.70% for special tenures. You can also opt for an auto-renewal facility when you apply for an FD. This enables your proceeds to be re-invested.
- Fixed deposits can help maintain the recurring and non-recurring expenses alike
First of all, fixed deposits help to maintain your daily expenses. Retirees have some recurring expenses and objectives to achieve. For example, if you want to gift a property to your children, throw a great party or you want to your home loan and so on. If you want to cater to your every need you can align your FDs by spreading them according to varying tenures as you focus on every goal. This will help you get enough funds to cater to your every need.
- Your fixed deposit contingency fund
When it comes to emergencies it can show itself anytime without any warning, such as medical treatments. For such a situation you can consider the FD as collateral and then get a loan off it. The advantage is online loan sanctions are fast and fetch you up to Rs.4 lakh! This way, you don’t have to break your fixed deposit and continue to earn the extra interest.
- Fixed deposits can brave the market tremors
Fixed deposits are not like the other equities and investments as it is not dependent on the state of the market. Your interest rate will remain the same and you will get assured returns. Determine your returns by using an FD calculator and this is the best way to plan your finances.
- Keep a close eye on the fixed deposits with ease
Investing in fixed deposits is easy and hassle-free. Fill a form and submit an application form while you make the payment. Opening an FD is easy and you can do it online from the comfort of your home. You can also invest by using your debit card while you visit the nearest branch of your preferred bank. You can also opt for a multi-deposit facility. If you are trying to monitor your FD account, you can do so, all you have to do is keep an eye on its maturity. In some banks, the maturity proceeds are easily re-invested, when the cycle of the investment ends.
The best way to safeguard your capital and one of the best investment options for senior citizens is by investing in fixed deposits, you can expect guaranteed returns without any additional hassles. Secure your sunset years with fixed deposits and you can enjoy retired life without the usual hiccups.