Money is like oxygen. We need oxygen for survival, and we need money to fulfill our daily needs, especially after retirement. Retirement is a critical phase of life. Only proper financial planning can ensure a stress-free post-retirement life.
There are a few popular investment options among Indians, such as gold investments, recurring deposits, property investments, fixed deposits, etc. Among all investment options, fixed deposits are one of the safe options to go for before you retire. Bank deposits are considered a safer haven as the returns are predefined.
There is no capping on maximum deposits.
Here, we discuss the type of fixed deposits you should buy before retiring.
It is one of the most preferred fixed deposit schemes varying from 9% to 16%. The Corporate Fixed Deposit Scheme is also one of the best investment options.
One of the most popular corporate fixed deposit schemes is Shriram City fixed deposits. It is an age-old investment scheme, ranging from 12 months to 60 months. The Shriram fixed deposit is accredited with MAA+ with a stable outlook rating.
It is one of the most common fixed deposit schemes offered by banks and financial institutions. The lock-in period ranges from 7 days to 10 years in this scheme. The benefit of investing in a standard fixed deposit scheme varies from one financial institution to another. There are mainly two forms of fixed deposits:
When you go with a cumulative fixed deposit scheme, interest earned will get compounded along with the principal amount. The whole amount an investor will get when the fixed deposit gets matured. Try to invest in multiples like Rs 1000 and Rs 2000.
If you go with the option of a non-cumulative fixed deposit scheme, interest earned on the principal amount is payable in installments. It could be monthly, half-yearly, annual, or quarterly installments. This investment option suits well with those who are looking for a regular source of income. If you have chosen Shriram fixed deposit scheme, here is the schedule of the interest payments:
When talking about the type of fixed deposit scheme to invest in before retirement, one cannot forget to invest in tax-saving fixed deposit schemes. It is one of the best secured fixed deposit schemes for those looking to save some tax as per section 80C of the Income Tax Act. Before investing in tax-deposit schemes, you should know that the amount is locked for five years. The interest rate in a tax-saving fixed deposit scheme varies from 5-6%.
It works well for those individuals who crossed 60 and looking for some safer investment where returns are guaranteed. It works like a fixed deposit only but offers the best interest rates for senior citizens compared to the standard fixed deposit scheme. The maximum investment one can make under this is 15 Lakh. The government's aim in introducing this scheme is to offer a regular source of income to senior citizens.
The NRE fixed deposit scheme suits those who are earning in foreign currency and want to convert the investments into Indian currency. The best part about the NRE fixed deposit scheme is that interest earned in investments is tax-free. So, both the interest and principal amount are repatriable. The only thing that needs to take care of is the currency rate fluctuations while making conversions.
The NRO fixed deposit scheme is one of the best investment schemes for NRIs. Unlike NRE, the NRO fixed deposit scheme is unaffected by the currency rate fluctuations, but these investments are taxable as wealth and gift tax. Get tax exemptions under the NRO Fixed deposit scheme by signing a double taxation avoidance agreement. The interest earned in NRO fixed deposit schemes is repatriable. To invest in such a scheme, it is a must for an investor to have NRO accounts. This scheme suits those who stay abroad and make huge earnings from India.
Apart from fixed deposit schemes, another investment scheme that is safe and secured for living a financially healthy retirement life is the National pension scheme. The minimum age to invest in this scheme is 18 years, and the maximum is 65 years. The best part about this scheme is that one can claim tax exemptions under section 80CCD of the Income Tax Act 1961. There are no interest payouts; you will see faster growth in your investments.
If you are looking for a guaranteed rate of return, a fixed deposit scheme is one of the most secured forms of investment. When selecting a suitable fixed deposit scheme, Shriram City Union Finance Limited holds years of experience offering investments with the best returns. Till now served almost 5 million customers. Shriram city always makes sure that fixed deposits offered by them always help their customer saving grow securely. The lucrative fixed deposit interest rate offered by Shriram's is 7.75%. If you compare the interest rates offered by Shriram city on fixed deposits with standard fixed deposit schemes offered by banks, you will see that it is a far much better deal. Shriram is offering a 0.30% per annum higher interest rate for a senior citizen. This scheme is known as the senior citizens savings scheme. Here one can make both offline and online fixed deposits. Explore here one of the best FD rates for senior citizens.