Investing in a fixed deposit is a risk-free way to earn guaranteed returns. This feature makes it one of the most popular risk-free wealth-generation tools in India.
Being a senior citizen, if you do not want to risk your money by investing in market-linked financial products, then a senior citizen fixed deposit is an ideal option. Besides banks, non-banking financial companies offer at better FD interest rates. These rates vary as per the tenure of the fixed deposit investment. So, if you are a risk-averse senior citizen, you can earn assured returns from FDs without risking your hard-earned money. Therefore, you can plan your life during retirement based on your financial objectives.
What is a senior citizen FD?
Senior citizen FD is similar to a normal FD. However, it comes with a higher interest rate.
Plus points of investing in a senior citizen FD
Here are some senior citizen fixed deposits benefits:
- You can earn better returns as the interest rates are more; this aspect makes it a trusted investment instrument among Indian families
- You can accomplish your monetary objectives with the sum earned via interest on deposits; for instance, you can use the amount to meet your medical expenses and household costs as well as fulfill your hobbies
- Your FD is not influenced by the fluctuations or performance of the equity market, as it is not market-linked, making it a safe investment tool
- You can start investing with a nominal amount of INR 5,000 with financial institutions like Mahindra Finance
- You can withdraw your funds anytime to meet monetary emergencies after a lock-in tenure of three months. Even if you want to release your funds within the lock-in duration, the early withdrawal charges are minimal
- You can take a loan against your FD in case of any financial crunch
- You can apply for an FD from the comfort of your home; Mahindra Finance provides the facility of online applications, making the procedure simple and convenient
Investing in market-linked products is risky, and at this age, you will not wish to lose your hard-earned money. Thus, investing in FD will prove to be a wise decision. Mahindra Finance offers an additional interest rate of 0.25% on all senior citizen fixed deposits. Visit its website and invest in an FD now!