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Are fixed deposits good for a retirement fund?

By Finserv MARKETS - Aug 26,2019
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Are fixed deposits good for a retirement fund

Most of our adult life goes in saving and investing in financial tools that would help us in the unwanted but impending old age. Retirement is pretty much non-negotiable, and therefore it is in your best interest to plan investments well ahead of time to be able to reap benefits post retirement.

Choosing the right financial instrument for investment is crucial but also daunting. Fixed deposit is one of the safest plan for your retirement, and safety is key to any investment plan. Fixed deposits are designed to provide you the maximum returns at a minimal risk.

Fixed deposit simply means a sum of money deposited for a specific duration. You can opt for a fixed deposit either through banks or non-banking institutions. Fixed deposits with non-banking institutions like Bajaj Finance Fixed Deposit available on Finserv MARKETS can fetch you a higher rate of interest every year, making it more appealing than a regular fixed deposit in a bank.

The amount you deposit gets locked for a specific term. However, in the case of any urgency you can withdraw your money before after paying premature withdrawal charges. But a more prudent option is to avail a personal loan against your fixed deposit to finance your urgent requirement. The interest rate offered under this debt category is fixed, and often higher than the savings account interest rate.

Fixed deposits typically offer safe and assured returns. They are one of the most popular savings instruments in India. The interest is paid out monthly, quarterly, half-yearly, or annually, with the option to reinvest interest income and gain the benefit of compounding. Previously, numerous visits to the bank were required to open a fixed deposit, however, now it is possible to go through the process online without hassles of standing in a long queue, and fretting about elaborate paperwork. For example, fixed deposit options available on Finserv MARKETS give you the liberty to compare your options intricately, select the one you like, transfer funds online, etc., without undergoing the trouble of visiting your bank at all.

Investing in growth-oriented investments like equities and stocks may help you grow your savings within a shorter span of time. However, amid increasing market fluctuations and changing economic conditions, there may be risks of losing your principal amount as well.
It is hence, better to invest a small portion of your savings in fixed income instruments, which offer guaranteed returns. Fixed deposits are one of the most preferred fixed income instruments, which can help you multiply your savings over time.

As smart investment options that are not linked to the volatility of the market, fixed deposit offers guaranteed returns. You can also reap the benefits of high-interest rates, which can help in the steady growth of your retirement savings.

Another salient benefit of investing in a fixed deposit is that you can predict your exact returns through FD Interest Calculators, that helps you figure out the maturity amount beforehand.
With several attractive benefits, fixed deposits are indeed one of the most preferred investment avenues for one’s retirement plan. Of late, a major bout of market volatilities and uncertainties brought to the fore by the ongoing credit crunch in the market, has worried investors to the brink of liquidating their investments. However, with robust investment options like fixed deposits, you need not worry about market volatility or vacillating economic conditions. Make a smart investment choice by choosing fixed deposits to multiply your savings, and benefit from the safety and stability of your investment.

The World Bank data suggests that the life expectancy in India has risen from 53-54 years in 1980 to 67-70 years in 2015. A longer life expectancy implies that everyone must be financially prepared for post-retirement life, making enough investments to support one’s lifestyle. A longer life expectancy coupled with the rising rate of inflation suggests that life after retirement is not a cheap affair and therefore, requires adequate longsightedness and financial preparedness. Therefore, investing in secure tools like fixed deposits should be on every adult’s financial planning agenda. Innovative products like Bajaj Finance Fixed Deposit available on Finserv MARKETS offers you a hassle-free process online with minimal documentation and lucrative interest rates.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522