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5 reasons why women should invest in an FD now

5 Ways of Helping Your Ageing Parents with Investments

5 reasons why women should invest in an FD now

As our parents gracefully enter their golden years, it's natural for us to become increasingly concerned about their financial well-being. If you're ready to be their financial superhero, join us as we unveil five powerful strategies to steer your ageing parents towards investment success and ensure a secure future.

During these sunset years, rising medical expenses can swiftly deplete their bank balance. It is our moral responsibility to review their financial plans and bridge any gaps. As you assess their financial preparedness, focus on ensuring that their savings generate a steady and sufficient income to sustain their needs. Together, let's empower ourselves with the knowledge and tools to support our parents in their financial journey, safeguarding their well-being and providing them with the peace of mind they deserve.

Shriram Fixed Deposit, the fixed deposit scheme from Shriram Finance, offers a special interest rate for senior citizens so that they can lead a financially independent and worry-free retirement life. Let's check how you can financially help your ageing parents to make their life more relaxing.

Create an Emergency Fund

The purpose of creating an emergency fund for your elderly parents is to meet their unexpected medical expenses. Now a question might have popped up in your mind. My parents already have a health insurance plan. So why should I worry about their medical expenses?

Most health insurance plans available in India do not cover all medical expenses. A few medical expenses that are usually not included in health insurance are:

  • OPD expenses
  • Sudden injuries
  • Physiotherapy
  • Dental treatment expenses
  • Expenses on lenses and spectacles

Though most health insurance plans cover pre and post-hospitalisation costs, it is for a stipulated period. You might need to pay all medical bills incurred beyond that period from your pocket. With an emergency fund in place, your elderly parents can meet any unexpected medical expenses without depending on others or making a premature or partial withdrawal from their fixed deposits.

Furthermore, a sudden accident or an unexpected disease raises the need for a helping hand for a limited period. Having an emergency fund will help your parents meet these expenses smoothly. You should never park the emergency fund of your elderly parents on a complicated investment avenue. Keep them in an easily accessible account so they can withdraw money as soon as needed. At the same time, ensure the safety and security of the avenue as older adults are more vulnerable to financial scams.

Invest Their Funds in Low-Risk Avenues

During retirement, the aim of the investment should be generating a regular income rather than growing wealth. Hence, instead of investing in market-linked instruments, invest your parents' retirement fund in a low-risk instrument like a fixed deposit or Senior Citizen Savings Scheme. You can take the help of an FD calculator to check the returns of fixed deposits.

Investing in non-cumulative fixed deposits from Shriram Finance can fetch a higher regular income for your parents. You can select the interest disbursement period according to your convenience.

Buy a Separate Health Insurance Plan

As we age, the likelihood of facing different health conditions increases. That's why it's prudent to consider purchasing a dedicated senior citizen health insurance plan for your parents. Even if they are already covered under your family health plan or your employer's insurance, having a separate health plan tailored to their needs is a wise choice.

Senior citizen health insurance plans are specifically designed for individuals above the age of 60, providing coverage for various age-related health issues. These plans offer a range of benefits that go beyond what a regular health insurance plan typically provides. However, it's important to note that due to the extensive coverage and benefits offered, the premiums for senior citizen health insurance plans are generally higher.

Several health insurance plans for senior citizens come with a co-payment clause. In co-payment plans, the insurer will pay only a part of the expenses, and you need to pay the rest from your pocket. Therefore, go for a low to zero co-payment plan. Usually, co-payment plans have a low premium. Before finalising the health insurance plan for your parents, read the policy document. It helps you understand its benefits and exclusions.

Help Your Parents Create a Monthly Budget

Making a monthly budget and sticking to it is a great strategy to curb expenses. It also helps identify areas your parents need to spend less to live a more comfortable life. Take time and sit with your parents to draft their monthly budget. It aids you in understanding their financial position and financial priorities. If their income is less than their basic expenses, try to fill the gap by buying medicines and doing grocery shopping for them.

Check Whether They Still Owe Any Debt

Don't hesitate to discuss your parents' financial liabilities with them. If they owe something even during retirement, then priority should be given to paying it off. If you find the situation complicated, then take the help of an expert to sort it out.

After the repayment of the debt, invest the remaining amount in a saving plan that offers assured returns and, at the same time, carries a low risk. Usually, banks and financial institutions offer special interest rates for senior citizens. Check it before investing in any scheme.

Other measures

You can also take the following steps to reduce your parents' financial distress during their sunset years.

  • Don't wait for your parents to retire to discuss their financial situation. Start the conversation in advance. It helps to take correct financial decisions according to their needs. Further, these conversations help your parents prepare for the life change.
  • At a particular stage, if you find the financial affairs of your parents complicated, then take the help of an expert to sort it out.
  • If your parents are new to online banking, e-wallets, etc., alert them about financial scams.
  • Ensure that all their legal as well as financial documents are secured and updated. If they have not yet made a financial power of attorney, get it done as soon as possible. It helps to manage their financials and expenditures in critical conditions such as sudden hospitalisation, mental disorder or unnatural death.


These days, most senior citizens prefer to lead a financially independent life. Hence, discussing the financial plan ahead of your parents' retirement is vital. Many investment options are currently available in the market for senior citizens. Planning in advance will help you to identify the most suitable investment options for your parents.

Invest in the Shriram Fixed Deposit scheme to generate inflation-beating returns and steady income. It offers an additional FD Senior Citizen - 0.50%* p.a. interest rate for senior citizens inclusive of which they can earn up to FD Highest Interest Rate - 9.20%* p.a.


  1. Are senior citizens eligible to take a loan against a fixed deposit?

Yes, a senior citizen can take a loan against a fixed deposit after completion of 3 months from date of deposit. But the fixed deposit must be in their name. Usually, issuers provide loans up to 75% of the value of the fixed deposit.

  1. What is the maximum tenure of fixed deposits?

The tenure of bank fixed deposits ranges between 7 days and 10 years. At the same time, the term of corporate fixed deposits ranges between 12 months and 60 months.

  1. What is the lock-in period of capital gain bonds, and what is the minimum investment requirement?

Typically, capital gain bonds have a lock-in period of 5 years, and the minimum investment requirement for these bonds is ₹10,000.

Key Highlights

  • Create an emergency fund for your elderly parents to meet their unexpected medical expenses.
  • During retirement, the aim of the investment should be generating a regular income. So, invest your parent's retirement funds in low-risk, non-market-linked investments.
  • Keep a check on their financial liabilities.
  • Help your parents to create a monthly budget. It helps them to identify areas they need to spend less to live a more comfortable life.

Downsizing helps senior citizens save a lot in terms of utility costs, property tax, renovations, etc.

Shriram completes 50 years of service!

To mark this momentous occasion, we have launched Shriram Jubilee Deposit - a 50-month investment scheme.
Invest now and earn up to 9.20%* p.a. (including 0.50%* p.a. for Senior Citizens and 0.10%* p.a. for Women)

Book a Fixed Deposit & get attractive/ high returns