Considering the factor of safety, many investors looking to build their retirement corpus usually opt for fixed deposits to gain from attractive FD interest rates. While the benefits of FD cannot be overlooked, it is wise to diversify your savings and look at other avenues and investment schemes as well. Some feasible investment options for you include fixed maturity plans, post office monthly installments, etc., apart from high-yielding company fixed deposits.

Beneficial Avenues for Investors

If you are relatively new to the world of investment, chances are that you might not have heard of many schemes that rate high on expert lists. Take a look:

  1. The Company FD: When it comes to aspects like safety, steady returns, and attractive interest rates, a fixed deposit is your best bet. This option lets you invest your savings in a financial institution over a tenor and gain from attractive interests. Company FDs usually offer higher interest than bank FDs and have now become the popular choice for those looking to save for retirement. Choose a company FD that offers at least 8% interest. You can even choose a non-cumulative FD if you need a periodical interest pay-out to finance your daily living expenses post retirement.
  2. The Personalized Senior Citizens Saving Scheme: This investment scheme was created by the government for senior citizens (those of age 60 and above) seeking retirement. It offers its investors interest returns as high as 9.2% with a maximum limit of investing Rs.15 lakh.
  3. Post Office Monthly Income: This investment option involves investing a sum of money over a period of 6 years with a cap of the sum of Rs.4.5 lakh. The returns from this option are taxed based on the income bracket of the investor. This option is thus ideal for investors from middle to lower income groups.
  4. Post Office Time Deposits: This investment option is quite similar to bank deposits. It involves investing multiples of Rs.200 into a bank account with a nomination facility. There is no maximum limit or restriction on investment. It offers an attractive annual interest return. All the interest gets compounded on quarterly basis in this investment scheme. It is backed by the government and is hence a risk-free form of investing.
  5. Fixed Maturity Plans: You can define this investment scheme as close ended mutual funds. Fixed maturity plans have a fixed lock-in period. These funds are not liquid during this period and cannot be withdrawn prematurely once deposited. The returns from these plans are taxable based on the income group of the investor.

Though there are numerous investment schemes available for you to choose from, each of these has benefits and drawbacks.

To Make The Best Investment Decision, Follow These Tips:

  • Do a thorough analysis of your requirements a get clear picture about the kind of investment you want and the amount of money you would require post retirement.
  • Have a clear figure of your income and savings, and how much money is available with you for investment.
  • Then compare and evaluate various options before making the final decision. Closely consider factors such as the liquidity, tenor, maturity period, interest earnings, risks, etc.
  • Be sure to get opinions from existing investors, professionals, financial mentors and more, before making your final decision.

As you narrow down on options, ensure that your retirement corpus is spread across a few schemes, rather than putting all the eggs in one basket. Also make sure that you choose to invest with companies that offer the convenience of online management, good customer service, and no hidden charges. Consider Bajaj Finance for company FDs with a high interest as well as high stability.

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