Choosing The Best Senior Citizen Savings Scheme (SCSS)

Senior citizens can invest in SCSS (Senior Citizen Saving Scheme) because it offers the safety of investment and also provides tax benefits. Also, SCSS is an ideal investment option if you are above 60 as it allows your investment to grow at a high-interest rate. 

However, as you will not be able to invest more than Rs. 15,00,000 in SCSS, you should also think of some other options that can grow your investments equally well. Also, it comes with a fixed tenor of 5 years that can be extended only up to 3 years after maturity. This means that you can search for instruments that provide better flexibility than SCSS when it comes to tenor options. Investing in fixed deposits can also prove to be a smart move but you must also ensure that you park your savings in a high-paying FD like Bajaj Finance FD. This is because it offers an FD interest rate of up to 6.75% which is much higher than current bank FD rates. The following benefit and features of Bajaj Finance FD make it the best-fixed deposit scheme for senior citizen:

Choosing The Best Senior Citizen Savings Scheme (SCSS)
High FD rate to senior citizens If you are a senior citizen then you will appreciate the fact that Bajaj Finance FD lets your investments grow at a 0.25% faster rate than others. Also, this higher FD rate is offered on both online and offline investment procedures. Non-seniors can avail of a 0.10% higher FD rate by submitting an online FD form i.e. by opting for the online investment procedure. Flexible tenor

A flexible tenor range that extends from 12 to 60 months enables you to prefer the lock-in period according to your investment requirements and plans. Also, you may invest in more than one fixed deposit plan by choosing its multi-deposit feature. This feature will enable you to seamlessly invest in several FDs at once by selecting a distinct tenor, FD amount, and fixed deposit type for every deposit. The option of investing in all these FDs with one cheque will provide you the much-needed convenience while investing in multiple fixed deposit plans. By investing in multiple FDs, you can ladder your investment to get better liquidity choices in the future. You may utilize the FD rate calculator that is provided on its website to check the returns of each deposit separately. Auto-renewal With Bajaj Finance FD, you will have the freedom of choosing the auto-renewal option while investing. You may also consolidate the FD returns in another FD plan by choosing the tenor and FD type that suits your future investment plans. Investing in Bajaj Finance FD is considered to be a safe alternative as it has been rated highly for being a stable investment platform for investors. To grow your savings quickly without investing too much, you can deposit them in SDP i.e. Systematic Deposit Plan. SDP has two variants that are known by Single Maturity Scheme and Monthly Maturity Scheme. With the Single Maturity Scheme, you can invest a fixed amount every month but the maturity date will be the same for all the deposits. With the Monthly Maturity Scheme, you get to lock in every deposit for an equal period. Both these variants enable you to earn sufficient returns and you can also choose a tenor as per your requirements. To grow your finances rapidly post-retirement, you can opt for the SCSS. However, it comes with limited options when it comes to tenor and also does not permit you to invest more than Rs. 15 lakhs. Instead, deposit your savings in a Bajaj Finance FD enjoy perks like high interest rates and the choice of picking a tenor from a flexible lock-in period. You also get a 0.25% higher FD rate with this FD scheme if you are a senior citizen. The online investment option and ability to ladder investments make it a sensible option to multiply your returns after retirement. You may even prefer to invest in Bajaj Finance’s SDP that lets you grow your deposits quickly without investing a huge amount. Choosing an FD investment Credit-ratings You have toiled all your life to build a retirement corpus. Hence, as a senior citizen, your first and foremost objective is to preserve your hard-earned wealth. With many financial institutions across the globe becoming debt-ridden and breaking down, it is imperative to invest in the FD of an institution with high credit ratings. Bajaj Finance Limited is one such NBFC in India that has continually achieved high credit ratings of ‘AAA+’ from ICRA and CRISIL. The international credit rating agency S&P Global has also given it a high credit rating of ‘BBB’. Thus, with Bajaj Finance FD, your life savings are in reliable and secure hands.

Minimum investment amount and lock-in period

Generally, FD schemes specify minimum deposit amount and lock-in period. The smaller the minimum deposit amount the larger will be the number of FD investors. Similarly, the shorter the lock-in period, the better it is to tackle interest rate risks. You just to shell out Rs 25,000 to open Bajaj Finance FD. Moreover, Bajaj Finance FD has a minimum lock-in period of just 3 months. Final word Apart from attractive interest rates, Bajaj Finance FD offers a range of benefits like premature withdrawals, Loan Against FD, online FD booking, flexible tenors, tax rebates up to Rs 5000, etc. Thus, it is a good investment option for senior citizens.

Author Bio:

Gaurav Khanna

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.

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