Your sister needs your support and protection more than ever when she reaches the age of retirement, even if she is a homemaker. Yes, even homemakers retire as their sources of income dry up. They may lose a spouse who was the primary earner, or the money meant for old age was lost to a bad investment and in helping their children’s careers. Maybe the money saved by your sister is not enough to beat the inflation.
The reasons could be many, but a good retirement plan would surely bring a smile to her lips and a tear in her eye.
Here the benefits your sister will enjoy:
- The gift of living independently with a regular income till the age of 100 can never be taken lightly.
- She will be at peace knowing in case something happens to her, her family will get a guaranteed death benefit
- She can enjoy other benefits such as vested benefits
Here, are the financial benefits for you:
- Get discounts as female policyholders can get premium rebates.
- The policy does not have to be a burden on your finances as you can opt for flexible premium payment and even change premium payment terms in the future.
- Avail tax benefits
However, Bajaj Finsev FD will strengthen the emotional bond between you and your sister, that you will enjoy the most. She will forever hold you in high-esteem and you will become each other’s rock as you enjoy the sunset years of your life without any worries!
Public Provident Fund or PPF is a long-term investment tool for the working population of the country. They are an easy and smart way of wealth accumulation for the years of one’s life when they won’t be a part of the workforce. But, did you know that the PPF savings can actually be withdrawn and diverted to another investment schemes to help you earn an appreciable return on your hard earned money.
Let’s take a look at some of the schemes you can re-invest your PPF –
Senior Citizen Savings Scheme or SCSS
This is a smart saving option for senior citizens. As per the terms of the scheme you are required to invest within one month of receiving your funds. It offers an interest rate of 8.6% with a flexible tenure of 5 years with the facility of premature withdrawals. Senior citizens eligible for the scheme include individuals who are 60 years of age or above and retirees who have opted for Voluntary Retirement Scheme or VRS or Superannuation and are between 55 to 60 years of age.
Fixed Deposit or FD
This is a low-risk, low-maintenance saving option of your Provident Fund(PF) savings. It offers a higher rate of interest starting from 8.75% onward with a flexible lock-in period of 12 to 60 months. Leading lenders such as NBFCs let you book the deposit online with minimum paperwork. The process does not take long and offers tax-free interest income of up to Rs. 10,000. To save tax on the income of more than Rs. 10,000 you can submit Forms 15G and 15H to the lender.
Investment Options for Senior Citizens to Earn Money
Once you are a senior citizen, you surely would not want to worry about funds and instead live peacefully on the savings which you have accumulated over the years. With this in view, a number of benefits are offered to senior citizens in India to help them tide over the challenge of loss of income after retirement. There are thus a number of investment options which they can consider for a steady source of income, a few of which are as follows –
Senior Citizen Saving Scheme
The SCSS or Senior Citizen Saving Scheme has more or less the same features as an FD for a senior citizen. Mentioned below are some of its benefits –
- Tenor ranges from 5-8 years
- The upper limit for deposit is Rs. 15 lakhs even if the person opts for multiple accounts
- The rate of interest is based on the market value of the current financial year
- The person can keep more than one nominee, who will be able to avail the benefits of the scheme on maturity if the investor dies during the tenor
Best Options To Earn Regular Monthly Income
Fixed Deposit for Senior Citizens
The features of a fixed deposit for senior citizen are the same as a regular fixed deposit but the benefits are more for the elderly. These include increased interest rates and no upper limits for deposits.
Also, an FD is one of the most secure financial investment with guaranteed and stable returns. Following are the features and benefits of FD for senior citizens:
- The tenor is flexible and the length of which varies from one lender to the other
- In the case of FD for senior citizens, there is also a nomination facility wherein the account holder can nominate their spouse or children to get the maturity sum in case of sudden death
- The FD interest rates of senior citizens are generally higher by about 0.35%, but again this varies from one lender to the other
- The depositor can make partial withdrawals from their FD account
- There is no upper limit for deposit money for senior citizens
- Guaranteed returns
As an added incentive, an FD calculator is also provided by many lenders these days which is provided on the website. Using this calculator, the investor can check the maturity amount before investing.
Financial crisis can come unannounced. Hence, it is just wise to opt for short-term investment options to manage your finances. Here are some interesting yet reliable short-term investment options for you to consider.
One of the highly preferred, low-risk investment option is the fixed deposit. It offers the higher rate of interest as compared to a savings account starting from 8.75% onward. Investors can choose from a flexible tenure of 12 to 60 months to make their investment work for them.
Rated high on safety and stability with ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating so your investments are never at risk and you start investment from just Rs. 25,000 onwards.
Is Fixed Deposit A Safe Investment?
Post Office Time Deposit
Post Office Time Deposit is also a preferred choice as they offer the sovereign guarantee. You can choose from a range of tenures between 1 to 5 years. Premature withdrawals of the deposited amount are available after completing a minimum tenure of 6 months but with a small penalty charge. One of the major issues in this investment is the complexity of paperwork. As most formalities usually take place the traditional way. So, it may not be viable for investors short on time.
Auto Fixed Deposit
The savings account of most banks provides the facility of Auto FD to depositors. It offers up to 3.5% interest rate for this kind of FD which is quite less. However, in the case of higher withdrawal, the auto Fixed Deposit gets liquidated automatically and it offers interest for the period the amount was invested in the form of FD.
One of major reason people love to invest money in stock market is the chance or the potential of growing your investment. As stock market is subject to market fluctuations it could cause losses if not invested in the right stock, at the right market or if you lack the proper experience. However, the kind of saving option you opt for make sure it aligns with your financial needs. Here are some suggestions for you to explore –
If you are not willing to take any risks with your hard hard earned money and looking for a low-risk, and an easy to maintain option you may put your money into fixed deposit. It is quite a popular, traditional saving method which has evolved with time keeping the lifestyle needs of users in mind. Besides, when you book an FD from leading lenders such as NBFCs you get the benefit of higher rate of interest starting from 8.75% onward for a lock-in period of 5 years.
Next, option you can explore is Public Provident Fund or PPF. mostly preferred as a long-term investment option backed by the government. You can start investing with as low as Rs. 500 on a higher rate of interest. The interest income earned is exempted from tax under Section 80C of the Income Tax Act.
Another, saving option you can consider is the recurring deposit. It inculcates the habit to save daily by letting you save an amount on a monthly basis. You can invest for a period ranging between 6 months to 10 years and earn appreciable income on your savings.