When you go with a cumulative fixed deposit scheme, interest earned will get compounded along with the principal amount. The whole amount an investor will get when the fixed deposit gets matured. Try to invest in multiples like Rs 1000 and Rs 2000.
Non-cumulative fixed deposit scheme
If you go with the option of a non-cumulative fixed deposit scheme, interest earned on the principal amount is payable in installments. It could be monthly, half-yearly, annual, or quarterly installments. This investment option suits well with those who are looking for a regular source of income. If you have chosen Shriram fixed deposit scheme, here is the schedule of the interest payments:
- Monthly - Payment made on the last working day
- Quarterly - Last day of March, June, September, and December
- Half Yearly - During the end of March and September
- Yearly - Last day of March
Tax-saving fixed deposit scheme
When talking about the type of fixed deposit scheme to invest in before retirement, one cannot forget to invest in tax-saving fixed deposit schemes. It is one of the best secured fixed deposit schemes for those looking to save some tax as per section 80C of the Income Tax Act. Before investing in tax-deposit schemes, you should know that the amount is locked for five years. The interest rate in a tax-saving fixed deposit scheme varies from 5-6%.
Features of tax-saving fixed deposit schemes:
- One can claim tax exemptions by investing in this scheme as per Section 80C of the Income Tax Act, 1961.
- One can make withdrawals only after the maturity period, i.e., five years.
- In senior citizen savings scheme, almost each of the banks and financial institutions is offering 0.50%* p.a. fixed deposit additional interest rate for senior citizen.
- Even if you are having a joint account, then also you invest in a Tax-deposit scheme.
Senior Citizen Savings Scheme
It works well for those individuals who crossed 60 and looking for some safer investment where returns are guaranteed. It works like a fixed deposit only but offers the best interest rates for senior citizens compared to the standard fixed deposit scheme. The maximum investment one can make under this is 15 Lakh. The government's aim in introducing this scheme is to offer a regular source of income to senior citizens.
NRE Fixed Deposit
The NRE fixed deposit scheme suits those who are earning in foreign currency and want to convert the investments into Indian currency. The best part about the NRE fixed deposit scheme is that interest earned in investments is tax-free. So, both the interest and principal amount are repatriable. The only thing that needs to take care of is the currency rate fluctuations while making conversions.
National Pension Scheme
Apart from fixed deposit schemes, another investment scheme that is safe and secured for living a financially healthy retirement life is the National pension scheme. The minimum age to invest in this scheme is 18 years, and the maximum is 65 years. The best part about this scheme is that one can claim tax exemptions under section 80CCD of the Income Tax Act 1961. There are no interest payouts; you will see faster growth in your investments.
If you are looking for a guaranteed rate of return, a fixed deposit scheme is one of the most secured forms of investment. When selecting a suitable fixed deposit scheme, Shriram Finance Limited holds years of experience offering investments with the best returns. Till now served almost 5 million customers. Shriram always makes sure that fixed deposits offered by them always help their customer saving grow securely. The lucrative fixed deposit interest rate offered by Shriram's is 9.20%* p.a. If you compare the interest rates offered by Shriram on fixed deposits with standard fixed deposit schemes offered by banks, you will see that it is a far much better deal. Shriram is offering a 0.50%* p.a. additional interest for a senior citizen. This scheme is known as the senior citizens savings scheme. Here one can make both offline and online fixed deposits. Explore here one of the best FD rates for senior citizens.