A secure investment will ensure that you live comfortably in your golden years. In India, multiple generations have trusted fixed deposits, making it typically the most popular instrument in the country. A secure investment will make sure that you live comfortably in your golden years. In India, multiple decades have trusted fixed deposits, which makes it typically the most popular instrument in the country.
However, in recent times, mutual money too has emerged as a favorable option, especially by means of SIPs (Systematic Investment Plans). While they promise higher benefits, they come with their talk about of risk. So, when you’re in your 60’s, opting for senior citizen FDs over mutual funds is certainly a safer bet.
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Here’s ways to compare both to understand why an FD is a good choice for you. When you compare mutual money and FDs in conditions of risk, FDs emerge as the clear champion. Mutual money is dangerous as finance managers invest your cash directly in the market to help it increase via capitalizing on market fluctuations. Despite the fact that shared fund investments promise high earnings, compared to FDs, they offer high-risk too. On the other hand, set debris is risk-free as they aren’t linked to the market completely.
In case of FDs, the investment is parked for a tenor of your choice and makes interest at a rate promised by your issuer at the start. So, a fixed maturity is guaranteed in case of an FD. You can fetch higher interest earnings of up to 12% on your shared fund investments.
However, this is at the mercy of market risks therefore the guarantee is minimal. While FDs provide a marginally lower interest, it is something you can depend on, making an FD a much better option for a retiree as if you. Moreover, if you choose the right senior FD, you can gain higher-interest cash flow.
Ones from NBFCs, for example, offer higher rates of interest than banks. You can choose Bajaj Finance’s SENIOR Fixed Deposits in this regard and gain from FD interest rates as high as 8.75% on your investment. For ease and convenience, use an FD calculator to choose the total amount you want to park in a senior FD.