Instead of Mutual Fund, Retirees can now pick Fixed Deposits Schemes

Instead of Mutual Fund, Retirees can now pick Fixed Deposits Schemes

When you choose an investment option to finance your retirement, it is always important to opt for one that gives stable returns. The returns from mutual funds depend on market forces and are thus risky. A good FD Scheme, in comparison, is more risk-free and will continue to provide you secure and stable returns through its tenor.

Here are some reasons why senior citizens should choose fixed deposits rather than mutual funds today:

  1. Fixed deposits provide a higher rate for retirees

If you are a retiree or a senior citizen seeking retirement, fixed deposits offer you a higher interest rate of over 8% on your invested sum. This helps you gain from better earnings, which you can put to use to finance various expenses, be it daily living expenses or funding your child’s or grandchild’s education.

Invest in a Fixed Deposit with Bajaj Finance to get a rate of 8.20% on Senior Citizens Fixed Deposit. This FD offers you high safety apart from online account management and a flexible tenor. You can also choose between a cumulative FD that gives you your principal and interest pay-out at maturity or a non-cumulative FD that offers you interest pay-outs periodically.

  1. They are not affected by market forces

Mutual funds are linked to the equity market. Thus, the amount you gain on your invested sum depends on market forces that are volatile and unpredictable. But, fixed deposits are highly secure and shield your investment against rise and fall of the market forces. This ensures a fixed and guaranteed return of your invested sum and earnings at maturity.

  1. They can be compared in terms of safety ratings

Company fixed deposit that offer higher interest compared to bank FDs are easy to compare using the safety ratings allotted to financial institutions. So, you can choose the right one by looking at rating like ICRA MAAA (stable) rating or CRISIL FAAA/stable. This way you can ensure your investment is in the safest possible hands.

  1. They enable you to capitalise on your pre-existing savings

Whether it is gratuity, your PPF earnings or your Employee Provident Fund savings, you can invest in them FDs to create a safe corpus of wealth for yourself and your family. Your other savings from income and other sources can be channelled into more aggressive investment avenues, but these amounts can be put into safe FDs to secure your future with ease.

  1. They have other features for convenience and security of retirees

Depending on the company or bank you choose, your fixed deposits will have various other features for added convenience and security. Features such as online account management will help you review your statements, earnings and maturity date on a timely basis.

Alternatively, more flexible features offered by various companies will allow you to borrow a loan against your fixed deposit to finance your monetary requirements in times of need. Added to this features like easy online application, door-step service for starting an account, and hassle-free reinvestment grants you more flexibility with your fixed deposit.

These are some exclusive benefits that fixed deposits offer as compared to mutual funds. This in turn gives you a chance to successfully build your wealth without the risk of losing money.

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