Interest rates in the economy are falling and retired individuals who depend on interest income for sustenance could suffer, if the fall continues. Here are 5 fixed deposit ideas for retired individuals in India that offer superior interest rates. It's a good idea to lock-in money for at least 3 years to hedge against the risk of falling interest rates.
The Fixed Deposits from Mahindra Finance offer senior citizens an interest rate of 10.25 per cent under the half yearly scheme and 10.10 per cent under the quarterly scheme for a 36-month deposit. This is far superior to what most of the banks in India are offering. The Company is part of the Mahindra Group and hence the deposits can be considered as very safe.
Kerala Road Transport Development Finance CorporationFixed Deposits
The Kerala Road Transport Corporation offers senior citizens an interest rate of 10.50 per cent under the Money Multiplier Scheme or Cumulative scheme, for one, two and three year deposits. The yield on a three year deposit works out to as high as 12.28 per cent. An excellent offer for retired folk. The deposits are guaranteed by the Government of Kerala.
Retired folk looking for monthly income can opt for the NCDs of IFCI Ltd, which is currently open till Nov 20. The NCDs have a Monthly Option and under this option the interest rate is 9.5 per cent for 5 years. Under the annual option the NCDs offer an interest rate of 9.90 per cent for 5 years and 10 per cent for 7 and 10 years. Being a government institution the NCDs can be considered as relatively safe. Also, the NCDs are to be listed on the stock exchanges, which makes them very safe.
At 9.75 per cent for a cumulative deposit, Bajaj Finserv's interest rates are amongst the highest among AAA rated companies. Considering that interest rate on banks deposit rates are much lower, there is a scope for enhanced earnings.
Under its monthly income scheme, Shriram Transport Finance is offering an interest rate of 10.03 per cent, while for its quarterly income it is 10.11 and for half yearly it is 10.24 per cent. The interest rates are pretty decent when compared to interest rate from banks.