Planning finances becomes important, especially before retirement because you will not have a fixed source of monthly income post-that. However, with many fixed deposit schemes available for senior citizens, it makes sense to invest your hard-earned money in something lucrative that yields a high return in your later years. Investing in a fixed deposit is a win-win situation for senior people. Let’s look at some of the reasons why it makes sense to invest in fixed deposits.
Fixed deposit is a secured investment
Believe it or not, but a fixed deposit is one of the most secure ways to invest money. If you invest the money in a company’s stock but its value falls over time, you are at the risk of losing what you have invested. This is, however, not the case with a fixed deposit. You will invest money for a specific time period and at a fixed rate of interest. The interest will not be affected by external factors and your money will remain safe.
High interest rate
Fixed deposits for senior citizens have higher interest rates than regular ones. Some banks might offer interest of more than 8 percent, depending on the tenure of the FD. Senior citizens must compare the interest rates and invest in an FD that’s the most beneficial.
Meet recurring and non-recurring expenses
A fixed deposit helps senior citizens in meeting recurring and non-recurring expenses. For example, the individual might have regular expenses as well as non-recurring ones such as medical expenses, education fee or the marriage of children. They can choose the payout type and various periods of a fixed deposit. Individuals can opt for monthly, quarterly or annual payouts. This way, senior citizens will have funds at their disposal for tackling the needs on time.
To avail loan in an emergency
An emergency comes announced. As a senior citizen, one might find it difficult to get a loan during a financial crisis. This is where a fixed deposit can be pledged as collateral to avail loan in an emergency. A senior citizen can tackle the emergency without touching their fixed deposit. Also, the good part is that they will keep on earning interest on the FD till its maturity.
Fixed deposits are easy to invest in and monitor. With banks such as IndusInd Bank offering online fixed deposit facilities, opening an FD has become even easier. Individuals need to fill out the application form, deposit the amount, and choose their fixed deposit plan. The easy 3-step process is great in terms of saving your time in opening a fixed deposit the traditional way. So, what are you waiting for? With so many benefits, senior citizens should always look at a fixed deposit as a beneficial investment opportunity.