Bajaj Finance Fixed Deposit Offers 54% ROI For Elderly

Posted by Arwind Sharma on July 8th, 2019

As a senior citizen, your investment options start to decline. This is owing to the limitations in the risk appetite which does not allow you to invest in market-linked securities. This leaves a gap in the investing needs of the elderly with growing costs, longevity, and medical expenses. There are only a limited number of investments which offer guaranteed returns, such as fixed deposits, certificates of deposits, bonds and to some extent debt funds. 

Investment options for Senior Citizens

As a senior citizen, you are most probably retired and looking to lead a calm and settled life where you can pursue your long lost hobbies and dreams. While the world is an open playground to start a second career, you would seek out stability and surety of returns. There is also going to be a cap on the percentage loss you can bear in your portfolio. This is called ‘Risk Appetite’. While at this age you cannot afford to lose beyond a certain percentage of your investments, you can look at guaranteed return options such as PPF (till a certain age), fixed deposits, Small Saving Schemes at the Post Office (National Savings Schemes), Senior Citizen Saving Scheme (SCSS) to name a few. 

However, all of these options do not give you a high-interest rate and tend to be fixed over a fiscal year. 

Does guaranteed returns mean low returns?

Thus, if one had to think about receiving higher returns as a senior citizen, is it not possible? With company deposits like Bajaj Finance, it is certainly possible to receive an interest rate of 8.95% for a senior citizen - higher than any fixed deposit with guaranteed returns. Thus, a guaranteed return by credit ratings of ICRA’s MAAA/Stable rating and CRISIL’s FAAA/Stable rating can fetch you the highest possible return without any effects of inflation.

Choose Bajaj Finance FD with 54% Return On Investment

With Bajaj Finance, senior citizens can earn up to 54% ROI (Return on Investment) as demonstrated below – You can easily do this calculation on the Bajaj Finance FD Calculator available on the website. If you were to invest the minimum amount of Rs. 25,000 in an FD and keep it for 5 years with 8.95%, it will yield you Rs. 38,377 as the maturity amount. Thus, you receive a Return on Investment (ROI) over a period of 5 years as a whopping 54%. 

The table below illustrates the return on investment on a sum of Rs. 5 lakhs for 5-year tenor.

Investor Type

Interest rate

Principal Amount

Tenor

Return

ROI

New customer

8.6%

₹5 lakhs

5 years

₹2,55,299

51%

Senior citizens

8.95%

₹5 lakhs

5 years

₹2,67,549

54%

Existing customers

8.85%

₹5 lakhs

5 years

₹2,64,033

53%

This is more than any other Best Investment Plan currently available in the market.

Other benefits:

You can avail various other benefits such as –

  1. Laddering – A senior citizen can make multiple deposits at different time intervals and get a continuous stream of maturities one after the other when the time comes. This will create a good support for monthly use. 

  2. Cumulative and non-cumulative payouts – Cumulative option in FDs allows you to add interest to the principal and the amount gets accumulated into a substantial corpus. This can be best used for goals farther away a few years later. The non-cumulative option is useful when you need a fixed monthly amount which can be utilized for expenses or further investing. Here the ROI earned will be a little less than cumulative but immediate financial needs can be met.

  3. Compounding – As a senior citizen, you can take advantage of quarterly compounding by parking substantial amounts and repeating rich rewards on the Return On Investment (ROI) earned. The higher the number of years you keep the amount, the more you will benefit.
Arwind Sharma

About the Author

Arwind Sharma
Joined: April 15th, 2016
Articles Posted: 48

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