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Usefulness of Fixed Deposits and Other Alternatives for Retired Individuals

Life after retirement is a blessing due to the absence of all work-related hassles. But this blessing can quickly turn into a nightmare if one has not planned well and in advance for it. By planning, we mean financial planning that helps one survive on a retirement corpus, without the monthly salary.


Without a steady income source post retirement, an individual would require other alternative sources like:





Fixed Deposits:

FDs are safe investment vehicles for retirees due to their hassle-free operation and assured returns. However, the rates of interest offered by lenders on these popular options have become less. With different amounts invested into different FD schemes with varying tenures/maturity periods, a steady income can be derived post retirement.



Senior Citizens’ Savings Schemes:

This savings scheme, exclusively meant for senior citizens (who are 60 years or older) offers quarterly interest at the rate of 8.4% per annum which is taxable. Interest is subject to the G-sec rates. Compared to other fixed-income taxable investments, this scheme has the maximum returns post tax deductions.

Know Why Should Retirees Invest in Fixed Deposits?




Post Office Monthly Investment Scheme:

This is a 5-year investment vehicle offering monthly returns at the rate of 7.8% p.a. MIS does not provide any tax benefits to investors and the interest earned on it is taxable.

Read Also: Where to Park Spare Fund- Comparing Saving Account, Fixed Deposit and Mutual Funds

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