Header Ads

How Can You Use Your PF Money Efficiently?

If you are nearing your golden year of life – your retirement years, you would be expecting your Provident Fund (PF) money soon. That is indeed undefined happiness. But the question remains as of what are you actually going to do with that lump sum amount! You might have got many plans in your head but what if that money is not sufficient for all your financial goals? Instead of letting your lump sum sit idle in your account, you can consider investing your funds in secure investment options like Fixed Deposit (FD). To open an FD, you need to deposit a lump sum of the amount with a fixed interest rate and a fixed tenor. Unlike the Provident Fund (PF), you can flexibly choose the tenor of your FD depending on your requirements and your financial goals. You can also invest in an FD besides your Provident Fund (PF) account to earn double benefits while you earn. 

Why Should You Invest Your PF Money in Fixed Deposits?

Some prominent Non-Banking Financial Companies (NBFCs) in India like Bajaj Finance provides a unique investment tool viz. Senior Citizen FD. When you invest in senior citizen FD, you can avail guaranteed returns for your investment with higher FD interest rates of up to 9.10 %. Also, you can calculate the FD interest rates and the maturity amount from your investment using the quickly accessible online FD calculator. Additionally, you can ladder your investments in FD with multiple FDs at the same time with different tenors to maintain liquidity from your investments. With FD laddering you can eliminate the need of paying taxes over your interest earned.

Following are some of the features of availing FD from Bajaj Finance:

  • You can deposit sum as low as Rs 25000 to open an FD
  • FD with Bajaj Finance is not influenced by the market rate fluctuations
  • You can enjoy a 0.35% increase in Senior Citizen Fixed Deposit Interest Rates
  • You can assure guaranteed returns from the company with a high credit rating from CRISIL (FAAA) and ICRA (MAAA).
  • You can flexibly choose the FD tenor from 12 months to 60 months as per your convenience
  • You can select the type of FD from cumulative and non-cumulative FD. With a Cumulative FD, the interest payout is paid annually or along with the maturity amount during the maturity of FD. Non-Cumulative FD allows you to choose the frequency of interest payout from monthly, quarterly, half-yearly, and yearly basis.
  • In case of emergencies, you can make a partial withdrawal. However, you will need to pay a penalty charge, and you will not be able to enjoy the comprehensive benefits of your FD account.
  • You can avail loan against your FD account wherein you can use up to 90% of the accrued sum.
  • You can avail deduction under Section 80C of the Indian Income Tax Act.

All you got to do is to fill a quick online application form and provide a few necessary documents, and your FD account will be soon open. You can manage your account, renew your account, and check your maturity date using the personal FD portal provided to you. When you choose to renew your FD after the maturity, the base amount increases due to which you can earn higher FD interest rates every time you renew your FD. Moreover, financial experts' advice to opt for cumulative FD than a non-cumulative FD to gain higher returns from your investment. Build your retirement corpus and invest in Senior Citizen FD for a financially rich retirement life without any hassles with Bajaj Finance today!
Powered by Blogger.