Fixed deposit schemes: Check out FD plans offering high returns on investment Financial institutions provide higher rates for senior citizens. Key features include higher interest for longer tenures, flexible payout options, and loan facilities. Major providers include Bajaj Finance, SBI, HDFC, and Post Office deposits
Fixed deposits (FDs) are a time-tested investment option that provides safety, guaranteed returns, and flexibility. Whether you're planning for short-term goals or seeking long-term financial stability, FDs offer attractive benefits, especially for senior citizens.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
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With senior citizen FD rates being typically higher than standard rates, retirees can maximise their returns while ensuring financial security. Below listed are some best fixed-deposit schemes currently available in India. Here’s a step-by-step guide on how to choose plans offering high returns on investment (ROI).
Why choose fixed deposits for investment?
Fixed deposit remains one of the most popular investment instruments for Indian investors.Here’s why they continue to be a preferred choice:
Guaranteed returns: Unlike market-linked investments, FDs provide assured returns irrespective of market conditions.Safety: Regulated by the Reserve Bank of India (RBI), fixed deposits are among the safest investment options.Flexibility: With tenures ranging from a few months to several years, FDs cater to diverse financial goals.Senior citizen FD rates: Financial institutions offer higher FD rates for senior citizens, ensuring enhanced returns for retirees.These advantages make fixed deposits an ideal investment option for individuals seeking stable growth.
Features of high-return FD plans
When evaluating fixed deposit schemes offering high returns, it’s essential to consider the following features:
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1. Higher interest rates for longer tenures
Most financial institutions provide better FD rates for longer tenures, allowing you to earn higher returns over time.2. Special rates for senior citizens
Senior citizen FD rates are typically 0.25% to 0.50% higher than regular rates, giving retirees an added financial advantage.3. Flexible payout options
Choose between cumulative FDs, which reinvest interest to benefit from compounding, or non-cumulative FDs, which provide periodic payouts for regular income.4. Loan against FD
Many banks and financial institutions allow you to borrow against your FD, providing liquidity without breaking your investment.Top fixed deposit schemes in India
Several banks and non-banking financial companies (NBFCs) offer attractive fixed deposit plans.Here’s a look at some of the top options currently available:
1. Bajaj Finance Fixed Deposits
Bajaj Finance FDs are known for offering some of the highest FD rates in the market. Key highlights include:High returns: Bajaj Finance provides competitive FD rates, with senior citizen FD rates even higher.Flexible tenures: Choose a tenure ranging from 12 to 60 months.Online application: A seamless online process ensures convenience for investors.
2. SBI Fixed Deposits
The State Bank of India (SBI) offers reliable FD plans with moderate returns. Senior citizens can benefit from enhanced rates on longer tenures.Secure investment: Backed by a government-owned bank, SBI FDs are highly trusted.Flexible tenures: Choose tenures from seven days to ten years.
3. HDFC Bank Fixed Deposits
HDFC Bank FDs provide a blend of safety and attractive FD rates. Senior citizen FD rates offer an additional 0.50% over standard rates.Wide range of tenures: Select durations from 7 days to 10 years.Premature withdrawal facility: Access funds in emergencies without breaking the FD completely.
4. Post Office Fixed Deposits
Post Office Fixed Deposits are a government-backed investment option offering stable returns. While interest rates are competitive, the safety of funds is unmatched.Tax benefits: Investments in 5-year post office FDs are eligible for deductions under Section 80C.Special rates for senior citizens: Senior citizen FD rates are slightly higher, providing added benefits.
How senior citizens can maximise returns on fixed deposits
Senior citizens can make the most of their FDs by strategically leveraging senior citizen FD rates and adopting efficient investment practices.1. Invest in cumulative FDs
Cumulative fixed deposits reinvest interest earnings, allowing the power of compounding to maximise returns over time.2. Diversify investments
Spread your investments across different tenures and financial institutions to benefit from varying FD rates and mitigate risks.3. Reinvest maturity amounts
On maturity, reinvest your FD proceeds into new schemes with current higher rates, ensuring continuous growth.4. Use an FD calculator
An FD calculator is a valuable tool for estimating returns based on deposit amount, tenure, and applicable rates. This helps in effective planning and maximising returns.Tax implications of fixed deposits
While fixed deposits offer guaranteed returns, understanding their tax implications is essential to ensure efficient financial planning:Tax Deducted at Source (TDS): TDS is applicable if the interest income exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year.Form 15H submission: Senior citizens with income below the taxable limit can submit Form 15H to avoid TDS deductions.Tax-saving FDs: 5-year tax-saving FDs allow deductions of up to Rs. 1.5 lakh under Section 80C.
Using an FD calculator for smart planning
An FD calculator is an online tool that helps investors plan their fixed deposits effectively. By inputting the principal amount, tenure, and interest rate, you can:Estimate maturity value: Calculate the total amount you’ll receive at the end of the tenure.Compare tenures: Assess returns for different tenures to select the most rewarding option.Evaluate post-tax returns: Factor in tax liabilities to understand net earnings.Using an FD calculator ensures informed decision-making and helps investors maximise their returns.
Why fixed deposits are a safe investment option
Fixed deposits are considered one of the safest investment options for the following reasons:Regulated by RBI: All fixed deposits offered by banks and NBFCs are governed by the Reserve Bank of India, ensuring transparency and accountability.High safety ratings: Institutions like Bajaj Finance offer FDs with top safety ratings from CRISIL and ICRA.Guaranteed returns: The fixed nature of returns eliminates the risk of market fluctuations, ensuring financial stability.
Tips to choose the right FD plan
Selecting the right FD plan is crucial for maximising returns while ensuring financial security. Consider these tips:Compare FD rates: Evaluate rates offered by different institutions and select the most competitive option.Check senior citizen FD rates: Retirees should specifically look for plans offering higher rates for senior citizens.Assess safety ratings: Opt for FDs from institutions with high safety ratings to ensure secure investments.Align tenures with goals: Choose tenures that match your financial objectives, whether short-term or long-term.
Fixed deposits remain a reliable and rewarding investment option for individuals seeking safety, consistent returns, and financial stability. With competitive FD rates and higher senior citizen FD rates, plans such as those offered by Bajaj Finance provide excellent opportunities to maximise returns.
By carefully evaluating the features, tax implications, and tenure options, investors can make informed decisions and enjoy the benefits of high-return FD schemes. Use tools like the FD calculator and invest in a fixed deposit today to secure your financial future.
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This story originally appeared on: India Times - Author:Faqs of Insurances
