Why Bajaj Finance Fixed Deposit is the preferred choice for senior citizens?

When it comes to growing money, senior citizens need to choose investment instruments carefully. In case the instruments do not perform as they expect, the situation can be challenging and if they make any loss, they may have to confront the financial crisis.

For senior citizens, fixed deposits (FDs) are one of the safest options to grow their funds. FD interest rates do not fluctuate with changes in the market. As a result, they can project their aggregated amount.

However, the question that may be concerning for them is which fixed deposit to select. Should they choose one by checking only the interest rate or is there something else they should be aware of?

Things to consider while choosing a fixed deposit plan for senior citizens

Here are some important aspects that individuals need to consider while choosing a senior citizen FD:

· Interest rate: One of the first things that most senior citizens focus on while choosing to invest in a particular financial institution is the interest rate. With a higher interest rate, they can grow their money faster.

· Premature withdrawal charges: Individuals can never predict if they will require a large amount of funds at any point in the future. If they do not have sufficient money at that time, they can withdraw their FD’s aggregated value, but at the cost of a premature withdrawal charge. The charge varies from 0.05% to 2.0% across all financial institutions. Individuals, therefore, need to check and ensure that this premature withdrawal charge is low.

· Safety ratings: There are different rating agencies like CRISIL, and ICRA, which assess the aspect of safety standards. They check systematic liquidity, timely servicing of depositors' funds, and other aspects of credit quality to rate the FD scheme of a particular financial company. To ensure maximum safety, individuals should check the safety ratings of the FD scheme offered by their financial institution.

Considering all these aspects, Bajaj Finance Fixed Deposit can be an ideal choice for senior citizens to grow their money.

Here are the features and benefits that make Bajaj Finance Fixed Deposit one of the best choices for safe investment:

·  Low investment amount

Bajaj Finance entitles its customers to open an FD of a minimum amount of Rs. 15000 making it accessible to everyone. The maximum amount can go up to Rs. 5 crore.

·  Industry-best safety ratings

Bajaj Finance is accredited with high safety ratings, including [ICRA]AAA(Stable) and CRISIL AAA/STABLE, reflecting how secure the Bajaj Finance Fixed Deposit is. So, individuals stay assured that the amount they deposit is safe and they will get the maturity value on time.

·  Attractive FD rates

With Bajaj Finance, individuals can grow their money at an attractive interest rate starting from 7.40%. However, this FD rate is 0.25% higher for senior citizen customers than non-senior citizen customers. They can even secure an interest rate of 8.60% on their FDs by choosing the special maturity period of 44 months.

·   Flexible payout options

Bajaj Finance gives flexibility to its customers to choose their desired payout option. It offers both cumulative payout (at maturity) and non-cumulative payout options (monthly, quarterly, half-yearly, and annual). A non-cumulative payout will be ideal for them if they want to get an income regularly. In this regard, individuals can use the Bajaj Finance FD calculator to know how much they will earn from their deposits after maturity.

·  Loan against FD

Generally, it becomes challenging for senior citizens to get a loan, but it will not be difficult to borrow if they have an FD with Bajaj Finance. Individuals facing credit shortages can borrow up to 75% of the deposited amount in case they choose the cumulative payout option. For non-cumulative FDs, the loan-to-value ratio is 60%.

·   Dedicated portal

Customers of Bajaj Finance can easily manage their FD account or invest using the dedicated portal – My Account. They will not have to take the hassle of visiting the Bajaj Finance branches for every small task or issue.

·  Strategic investment through SDP

SDP lets individuals invest in small amounts starting from only Rs. 5,000 which they will have to pay monthly for at least 12 months. With every SDP deposit, new FDs are created in the name of the account holders. They have the option to receive the total amount at once, or monthly after their SDPs mature.

Fixed deposits are considered one of the safest investment instruments for growing money as the FD rate does not follow market fluctuations. As a result, by keeping money in FDs, individuals can receive a guaranteed income, making it one of the safest investment options for senior citizen customers.

About Bajaj Finance Limited

Bajaj Finance Ltd. (‘BFL’, ‘Bajaj Finance’, or ‘the Company’), a subsidiary of Bajaj Finserv Ltd., is a deposit taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 66.05 million customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BB+/Positive and a short-term rating of B by S&P Global ratings.

To know more, visit www.bajajfinserv.in.

Moneycontrol Journalists are not involved in creation of this article.