Enjoy Financial Stability in Your Golden Years Maximise Returns with Shriram FD
Fixed Deposit for Retirement
Planning for retirement is a crucial step in ensuring that you are able to live a peaceful and financially stable life in your golden years. One of the key questions that you will often find yourself asking as you approach your retirement years is how to build a retirement corpus that gives steady returns. One of the best ways to do so is by investing in an FD for your retirement with Shriram Finance. Our fixed deposit for retirement planning provides one of the highest interest rates of up to 8.15%* p.a., inclusive of 0.50%* p.a. for senior citizens and 0.05%* p.a. for women depositors.
While there are multiple investment options in the market, FDs have long been a popular choice for Indians owing to their attractive blend of stability and predictability. Take a look at why FDs should be a part of your retirement portfolio and take a step towards financial stability.
Benefits of Fixed Deposit for Retirement
Building a retirement portfolio that offers ease of access and stability is crucial. Here are some reasons why FDs can help you achieve these goals and more in your retirement years:
Predictable Returns
Unlike market-linked investments like stocks or mutual funds, FDs come with minimal risks and offer stable returns on your investment. This predictability lets you plan your retirement income effectively and keep volatilities at bay. Senior citizens get an additional 0.50%* p.a. and women depositors get 0.05%* p.a. on their FD investment with Shriram Finance. Perks like this make FDs an attractive investment option for your retirement.
Regular Income Option
With multiple payouts like monthly, quarterly, half-yearly and yearly, retirees can supplement their income with a steady flow of funds. Choosing a payout option that aligns with your financial requirements can provide much-needed financial stability in your post-retirement years.
Flexibility in Tenure
FDs come with multiple tenure options, ranging from a few months to years. This flexibility makes it easy for you to choose a maturity date that matches your retirement needs. For Shriram Unnati FD, the minimum tenure is 12 months and the maximum tenure is 60 months.
Easy to Understand
FDs are simple to understand and invest in compared to other investment options like stocks or mutual funds. They often serve as a good option for individuals who are new to investing and prefer a less complex financial instrument compared to market-linked investments with higher inherent risks.
Factors to Consider When Choosing FDs for Retirement
Here are some of the factors that you must consider before investing in an FD for retirement planning:
Understand the interest rates that you are being offered on your FD investment for the tenure you choose. Senior citizens get an additional 0.50%* p.a. and women depositors get an additional interest rate of 0.05%* p.a. on booking an FD with Shriram Finance, helping them maximise their returns.
Choose a tenure that aligns with your retirement needs. Factors in your current age, when you plan on retiring, the income requirements you anticipate, etc. It is also important to remember that shorter tenures closer to retirement can provide steady income, while longer tenures can help maximise your returns. With Shriram FD, you can choose from a minimum tenure of 12 months and maximum tenure of 60 months.
Always take into consideration the penalties associated with premature withdrawals. While early withdrawals can sometimes be inevitable, especially during emergencies, they come with some penalties that can reduce your returns. Also, there is a lock-in period of 3 months before you can withdraw your FD prematurely. So, try to keep your principal locked in for the entire tenure and avoid premature withdrawals if possible.
How to Invest in a Fixed Deposit for Retirement
Investing in an FD for retirement with Shriram Finance is simple. Visit our website or the Shriram One app to start investing in Shriram FD. Here are the steps that you need to follow:
- Step 1Register using your mobile number, pin code, and residency status. Click 'Invest Now'.
- Step 2Choose your desired deposit amount and select your tenure and payout option based on your preferences.
- Step 3Enter your PAN and Aadhaar details, verify via OTP and complete KYC with a quick selfie.
- Step 4Provide occupation details and add your bank details for maturity credit, nominee information and set the maturity instructions.
- Step 5Complete declarations and make payment via net banking, UPI or debit card.
- Step 6Receive instant confirmation via SMS/email and get your digital FD certificate within 7 working days.
How to Withdraw Your Matured Amount from a Fixed Deposit for Retirement
This is how the process of withdrawing your matured FD amount usually works:
- While booking your FD, you will be prompted to choose how you want your FD amount to be handled at maturity.
- You can either choose to receive the matured amount directly into your linked current or savings bank account or select auto-renewal.
- To have your matured FD amount automatically credited to your linked bank account, choose the option "Refund on Maturity."
- This makes for a smooth and automatic transfer of the funds on the due date.
- Please remember that if you wish to withdraw your FD investment early, a penalty fee is applicable.
- Try to keep your FD investment locked-in to maximise your returns on maturity.
FAQs
Is an FD good for retirement?
Yes, investing in a FD is a smart choice especially when you are planning your retirement as it offers reliable returns and a steady income stream.
How do you get a fixed income after retirement?
Investing in instruments like FDs ensures steady income on choosing from the regular payout options.
What are the benefits of an FD for retirement compared to other retirement savings options?
Fixed deposits offer retirees reliable returns and the option of regular payouts, unlike market-linked instruments that fluctuate. Booking an FD with Shriram Finance for retirement planning offers reliable returns, flexibility in tenure, and senior citizen benefits, like an additional interest rate of 0.50%* p.a. and women depositor benefits such as an additional interest rate of 0.05%* p.a.
Can I open an FD for retirement at any age?
Yes, you can open an FD with Shriram Finance for retirement planning at any age. But the earlier you make the investment, the longer you’ll have to maximise your returns through the power of compounding.
Is there a maximum limit on the amount I can invest in an FD for retirement?
You can usually invest up to ₹10 crores in Shriram Unnati Fixed Deposit through the online method. For investments of more than ₹10 crores, you can visit our branches.
Can I withdraw money from my FD before maturity?
Yes, premature withdrawals are usually possible, but it is important to note that this will incur penalties. Also, there is a lock-in period of 3 months before you can withdraw your FD prematurely with penalties.
What happens to my FD for retirement if I pass away before maturity
In the event of the account holder’s demise, the fund from the FD may be transferred to the nominee or legal heir as per Shriram Finance’s policies.
Disclaimer
With regards to deposit-taking activity of Shriram Finance Limited (’SFL’), viewers may refer to detailed information and T&C provided in our application form available at https://www.shriramfinance.in/downloads . The Company is having a valid Certificate of Registration dated 31st January 2023 issued by the Bank under section 45-IA of the RBI Act. However, the Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.
