To grow their lifelong savings, senior citizens often look for investment options with stable returns and minimum risk. Fixed deposits (FD) perfectly fit these requirements. Though, to optimise your savings, choosing the right FD provider is important. Here are some reasons that make Bajaj Finance FD an ideal investment option for senior citizens:
- Higher returns: An NBFC like Bajaj Finance gives higher senior citizen FD rates in comparison to bank FDs. Regular investors get up to 7.80% interest rate and senior citizens get an additional 0.25%, so they can avail up to 8.05% interest, depending on the tenor of their investment.
- Flexibility: Bajaj Finance FD can cater to diverse needs of senior citizens. If they are looking to cater to regular expenses like monthly grocery or medicines, they can opt for periodic interest payouts with a non-cumulative FD. This option allows for monthly, quarterly, half-yearly or yearly interest payouts. If the aim is to build a huge corpus, they can go for a cumulative FD, which gives higher returns than a non-cumulative one. This option pays out the interest along with the principal amount only at the time of maturity.
- Greater stability: Bajaj Finance FD is not affected by market fluctuations. It has the highest stability ratings with CRISIL’s FAAA/Stable rating and ICRA’s MAAA/stable rating. It is also the only Indian NBFC to hold an international rating of ‘BBB’ by S&P Global. So senior citizens do not need to worry about market risks or loss of their money.
- Systematic Deposit Plan: This is the latest variant of a fixed deposit in the Indian market. Offered only by Bajaj Finance FD, Systematic Deposit Plan is designed for disciplined investment that can be done in bits and pieces. The investor can choose to invest in fixed deposit with small, monthly contributions, and each of these deposits lasts for a minimum of 12 months and a maximum of 60 months. Seniors can start this plan with a minimum deposit amount of Rs. 5,000. The investor can decide to go for 6 to 48 numbers of monthly deposits. So in times of financial crisis, senior citizens can withdraw money from a single deposit without having to break the entire FD as all other deposits in the SDP will continue to earn returns even if one deposit is liquidated.
- Online Account Opening/Management: Seniors can fill in the online application form for opening an FD account and avail the facility of doorstep document pick up. With Experia- your online fixed deposit account, it is easy to manage multiple FD accounts from the comfort of your home.
Below table shows the senior citizen FD Rates for 2020 with Bajaj Finance FD
Tenor in months | Minimum deposit (in Rs.) | Cumulative | Non-Cumulative | |||
Monthly | Quarterly | Half Yearly | Annual | |||
12 – 23 | 25,000 | 7.85% | 7.60% | 7.64% | 7.71% | 7.85% |
24 – 35 | 7.90% | 7.64% | 7.69% | 7.76% | 7.90% | |
36 – 47 | 7.95% | 7.69% | 7.74% | 7.81% | 7.95% | |
48 – 60 | 8.05% | 7.78% | 7.83% | 7.90% | 8.05% |
You can calculate interest rate online with a fixed deposit calculator, which can help you decide on the amount and tenor of your investment to meet your financial goals. Investments in Bajaj Finance FD start at just Rs. 25,000, so people can invest for shorter tenors and earn some of the best senior citizen FD rates.
With auto-renewal facility, senior citizens can earn additional FD interest rate upon renewal of Bajaj Finance FD.