Interest rates have moved upwards in 2018 and are expected to peak in 2019. This will serve as an essential corpus building time for investors, especially senior citizens. Senior citizens can benefit from increasing interest rates by investing in fixed income instruments.

Banks and NBFCs (non-banking financial instruments) are offering 0.25% to 0.5% increased rates to senior citizens. Bajaj Finance Fixed Deposit has emerged as the best offering with a high-interest rate of 8.75%, which goes up to 9.10% for senior citizens.

Why FDs are the best option for senior citizens?

For senior citizens, investing in high-yielding, debt-focused instruments like fixed deposits can ensure safety of capital and stable growth of returns over time. While both banks and companies offer FDs, you can benefit from higher interest rates by company FDs. When choosing the right company FD to invest in, make sure you invest in FDs with high safety ratings. Bajaj Finance Fixed Deposit has the highest safety ratings by CRISIL and ICRA, which help you ensure safety of capital.

Here’s a look at some of the key benefits of investing in Bajaj Finance Fixed Deposit:

• Diversification of retirement portfolio - Bajaj Finance Fixed Deposit enable a retiree to build long-term wealth by providing a stable, high yielding fixed income asset. You can also create a cushion against the volatility in market-linked securities such as equities, which might be part of the senior citizen’s portfolio. The lump sum nature of the FD helps in maximizing the interest earned through compounding. Senior citizens can start a Bajaj Finance Fixed Deposit with a minimum amount of INR 25,000 and gain maximum benefits from compounding.
   
• The benefit of laddering - Senior citizens can avail the benefit of laddering - i.e., periodically investing in fixed deposits of different amounts and different investment tenors to create a large corpus. This can be done by investing in multiple fixed deposits with Bajaj Finance as it offers the flexibility to choose tenors. Since Fixed deposit interest rates keep fluctuating, such a strategy will help senior citizens avail maximum benefit from their investments by overall averaging of interest rates across multiple fixed deposits.
   
• Options to choose periodic payouts- When you invest in Bajaj Finance Fixed Deposit, you may want to opt for periodic pay-outs, or you can get interest at maturity. In case you choose periodic payouts, you can also choose the frequency of your payouts. Interest earnings are higher for maturity at the end of tenor, but periodic pay-outs can enable you to fund your regular expenses.

Simple combinations of laddering or choosing payouts as per your convenience can be a firm source of support for retirees. By investing provident funds into Bajaj Finance Fixed Deposit, senior citizens can not only grow their retirement corpus, but also ensure monthly income to fund their regular expenses. With flexible tenors, ranging from 12 to 60 months, you can benefit from easy access to liquidity at all times.