While at this point in time i.e. in your sunset years, safety of capital is the prime concern for you, still the availability of a number of investment options can lure you to make some extra money on your retirement corpus. And, tempted by the returns from the equity market, retirees have begun to extend their exposure to this volatile instrument via the mutual fund route, but if you are highly risk averse here are a few lucrative fixed deposit options for you to consider.
Remember, do make it a point to not lock your funds for a longer period of time, as the interest rate regime is trending on the higher side.
1. Fincare Small Finance Bank Fd: This FD scheme offers the highest interest rate of 9% for a maturity tenure of 24 months 1 day to 36 months. As a senior citizen, you will be able to secure an additional interest rate of 0.5% taking the total yield to 9.5% per annum. Note, in case the FD account is jointly held, the senior citizen advantage applies only in a case where the first account holder happens to be senior citizen.
2. Utkarsh Small Finance Bank Fd scheme: From the FD scheme by this Varanasi-based small finance bank, you can reap as high as 9% per annum cumulative rate of interest for a tenure of 456 days to less than 2 years. For other tenure, the interest rate ranges between 4-8.75%. 1 year to 455 days deposit fetches a senior citizen a return of 8.75% per annum.
3. DHFL CARE AAA rated FD scheme: With AAA rating by CARE and FAAA by Brickworks Ratings, FD scheme by Dewan Housing Finance Limited assures an investor of the highest degree of safety with respect to timely payment of interest and principal amount upon maturity.
For the cumulative scheme, the base interest rate for tenures between 40 to 60 months is 8.5% and as senior citizens are eligible for an additional interest of 0.4%, the effective yield becomes 8.9% return per annum. Minimum deposit for the FD scheme is Rs. 2000.
Under its special deposits scheme for 18 months with a minimum deposit of Rs. 10,000 which is exclusively for female investors, senior citizens can earn a return of 8.3% per annum.
4. Bajaj Finance FD scheme: With a minimum amount of Rs. 25,000 you can invest in the FAAA by CRISIL and MAAA by ICRA rated deposit by Bajaj Finance to earn an additional interest of 0.35% over and above the regular return. Senior citizens can earn a higher rate of interest up to 8.75% on a cumulative scheme tenor of 36-60 months.
5. Ujjivan Senior Citizen Fixed Deposit: Senior citizens can earn an interest rate as high as 8.5% per annum on this FD scheme by Bangalore-based Ujjivan Small Finance Bank for a maturity tenure of one and two years. The FD account can be opened with a sum of just Rs. 1000 and in multiples thereof. Also, as per the Union Budget 2018, individuals categorized as senior citizens have been exclusively allowed TDS exemption up to Rs. 50,000 on interest income as per section 80TTB.
Notably, while the deposits from banks are backed by a deposit insurance worth Rs. 1 lakh, the same is not the case in case of fixed deposits offered by corporate or NBFCs. So, it is advised to check the rating of NBFC fixed deposits assigned by credit agencies before investing in them