Retirement is a time wherein individuals want to invest in options that offer them steady returns without major risks. There are various financial schemes and fixed deposit plans for retired persons offered by several banks and NBFCs. These plans are beneficial for senior citizens who want a secure financial life after retirement. While building your parents’ investment portfolio, it is vital that you include options that would fulfill your short-term and long-term goals:
SBI Life Saral Pension Plan
It is an individual, non-linked, participating, and traditional pension plan. It is good enough to save money for the golden years of your life. Here are some of the main features and benefits of this plan:
- The loan tenure is high and it is ranging from 10- 40 years.
- The bonuses will be guaranteed for the first five years.
- The minimum age of entry is 18 years and the maximum is 65 years.
- The policyholder is assured of vesting bonuses on the maturity of the plan.
- The minimum sum of Rs. 1 lakh is assured with no maximum limit.
- The minimum age for investment is 40 years and the maximum is 70 years,
ICICI Pru-Easy retirement
This ICICI Pru-Easy retirement plan helps the policyholder to receive regular income when his/ her salary stops. By investing in ICICI Pru-Easy retirement it helps in generating good long term returns and also offers protection. Thus, the features and benefits of this plan are as follows:
- The payment frequency modes will be monthly, half-yearly and yearly.
- The policy term ranges from 10-30 years.
- RS. 48, 000 per annum will be the minimum premium with no maximum limit.
- The entry age of 18 years will be minimum and the maximum will be 70 years.
- 45 years will be minimum vesting age and 80 years will be maximum.
- Tax benefits can be availed on the premiums paid
Max Life Guaranteed Lifetime Income Plan
The Max life guaranteed lifetime income plan is a non-linked traditional annuity plan. The plan guarantees to the policyholder that a regular income will be given to the person after his retirement. The features and benefits of this plan are as follows.
- The pension will be received monthly/quarterly/half-yearly/yearly basis.
- The purchase price of the policy will be returned to the nominee after the death of the policyholder.
- There are options to receive lifelong payments for as long as the policyholder and their spouse are alive.
Fixed Deposits for Senior Citizens
Fixed deposits for senior citizens is a customized term deposit plan that allows the senior citizens who are above the age of 60 years to get the maximum interest returns out of their investments. In India, several banks and NBFCs offer a higher interest rate to senior citizens, and among those is Bajaj Finance, offering one of the highest interest rates in India. There are many fixed deposit schemes with various features and benefits.
Features and benefits of fixed deposits for senior citizens
- The investment in FD will be safe and secure.
- The returns in FD are guaranteed.
- The interest rates in FD are higher and very attractive.
- In FD there will be a periodic option on interest payment.
- The FD will allow premature withdrawal, nomination, loan, and sweep- in the facility.
- Online booking is also available.
Interest Rates for Fixed Deposits for Senior Citizens
The rate of interest will vary from one financial institution to the other. The higher rate of interest given by these institutions will help the senior citizen to get a higher amount of investment income. Thus, the following list is about fixed deposits for senior citizens. [The rate of interest given below is of 2019]
|Name of Banks/ NBFCs||Rate of interest ( for 1 to 5 years)|
|Bajaj Finance||8. 35% to 8. 70%|
|Canara bank||6. 50% to 7. 00%|
|HDFC bank||6. 25% to 7.00%|
|HSBC bank||5. 50% to 6. 50%|
|ICICI bank||7. 00% to 7. 25%|
|IDBI||7. 00% to 7. 25%|
|IDFC||7. 75% to 8. 00%|
|Karur Vysya bank||6. 75% to 7. 00%|
|Punjab National Bank||6. 75% to 7. 25%|
|SBI bank||6. 90% to 7 .25%|
|Yes Bank||7. 71%|
Above all the top banks and NBFC like Bajaj Finance, which gives the highest rate of interest of 8.35% to 8.70%; and this is the best deal among the above shown financial institutions. Also, it is a 0.35% higher rate than all the usual banks. Bajaj Finance FD also offers online account management and flexible tenors.