Saving, investing and making money with technology

Tag: investment

5 Ways to Get Monthly Income When you have Retired

While saving can help you access a corpus of funds during your retirement, having a regular income can put your pocket and mind at ease to continue living your usual lifestyle without any financial restraint. Your monthly income need not end with your employment years. You can still receive a regular monthly income by making smart financial moves. You can do this by investing in schemes that offer returns on a regular basis.

Look at 5 such Investment instruments that offer monthly earnings.

  • Senior Citizens’ Saving Scheme

This scheme is a popular choice and is available only for early retirees and senior citizens. If you are above the age of 60 years, you can easily avail this savings scheme from your nearest bank or post office and receive earnings every quarter. If you are an early retiree, you will need to invest in this scheme within 1 month of receiving your retirement funds. This scheme has a five-year tenor and you can choose to extend it for an additional 3 years at the end of the tenor. You can also avail tax benefits under Section 80C and invest up to Rs.15 lakh in a Senior Citizens Saving Scheme. The current interest rate for the SCSS is 8.3%.

  • Post Office Monthly Income Scheme

This scheme allows you to invest up to 4.5 lakh as a single account holder. The current interest rate of this scheme is set at 7.3% and though this is the annual rate of interest, an average of this is paid monthly. However, the interest earned under this scheme is taxable. You can also plan for the interest to be credited to the savings account you have with the same post office instead of having to visit the branch every month.

  • Fixed Deposits

Fixed deposit for senior citizen offer you safe and guaranteed returns and are better than your savings account in terms of earnings. With the option of non-cumulative deposit, you can choose your interest to be paid out every month, or other periodic intervals like quarterly or annually. In order to gain from higher returns while still opting for a safe option like a Fixed Deposit, choose to invest with an NBFC like Bajaj Finance.

Here you can find FD interest rates up to 8.75% that increase by 0.25% upon renewal. Additionally, you can use online account management to keep a track of all your details. Also, you can invest as low as Rs.25,000 to start your FD. Moreover, you can use an FD calculator to predetermine your returns in order to add efficiency to your investment planning.

  • Pradhan Mantri Vaya Vandana Yojana

Devised specially to benefit the senior citizens, this scheme offers you an interest rate of 8% that is payable monthly. This scheme is available up to 31st March 2020. At the time of purchase, you can choose the payout frequency from options like monthly, quarter yearly, half yearly or annually. The policy term for PMVVY is 10 years. Here, the minimum pension per month starts at Rs.1000 and the maximum pension per month can go up to Rs.10,000. However, the maximum investment limit for this scheme is Rs.15 lakh. Also, this pension scheme is exempted from GST or service tax.

  • Mutual Funds

In order to gain regular income while still gaining from high returns through mutual funds, you can opt for debt mutual funds and choose the monthly dividend option. These mutual funds allocate only 10%–20% of your capital into equities while the rest is invested in safe bonds or debt instruments.

However, it is essential to remember that the returns from these mutual funds may not be as high as regular mutual funds as there is a lower risk involved. Additionally, you can invest in a systematic withdrawal plan that allows you to withdraw a fixed amount on a regular basis. You will also need to choose the date, amount and tenor in advance for this scheme.

So, consider the above options to continue receiving monthly income post retirement too.

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How to Fulfil your Dreams with the Best Investment Options?

All of us have dreams and personal goals that we relentlessly pursue. At times, our goals may appear to be too far-fetched or even unattainable. They may appear to be too expensive and beyond our reach, financially. By exercising financial discipline and making wiser investment decisions, we can have greater control over our financial future and fulfil many of our financial goals.

The key to financial success is in being aware of the various investment options available in the market and choosing the most suitable ones. Among the various investment options available to make dreams come true, fixed deposits score over others because of these features:

 

  • Safety of your Investment

 

An investor needs to be sure that his investment is in safe hands. A fixed deposit has been a preferred financial instrument as far as the security of your investment is concerned. Apart from FDs offered by banks there are several NBFCS that have entered the market with similar products.

For instance, Bajaj Finance Fixed Deposit not only gives you high returns on your investment but also offers flexible tenors to meet your liquidity needs. You can get an FD interest rate of over 8% on Bajaj Finance Fixed Deposit, which is higher than the market average.

Bajaj Finserv also offers pre-approved loans, cards, insurance and EMI Network offers to help you fulfil your financial needs. Click here to discover your pre-approved offer.

 

  • Guaranteed Returns

 

An FD offers you guaranteed and predictable returns. Using an FD calculator, you can determine the exact amount that will be available to you at maturity. Though bank FD interest rates have fallen in recent months, there are several corporate FDs that offer you attractive returns.

 

  • Liquidity

 

If you need money periodically, you can opt for a non-cumulative FD and withdraw the interest amount as periodic payments. You can choose a monthly, quarterly, half-yearly or yearly scheme based on your requirement.

If you opt for a cumulative FD, the interest amount will be re-invested in to your capital and will generate higher returns.

 

  • Availability of Loans

 

Most banks and financial institutions offer loans against FDs. The amount of the loan usually hovers around 70-90% of the FD amount. There is no processing fee on such loans and the procedure for availing these is very simple. The interest on these loans will be 2-2.5% higher than the interest rate that you get on the FD. You will, however, continue to earn interest on your FD.

The repayment can be done in convenient EMIs and the bank does not charge any penalty in case you pre-close the loan. Loan against FDs can help you tide over financial emergencies in your life. Very few financial instruments give you this kind of flexibility.

 

  • Ease of Operation

 

An FD is convenient and easy to operate. Most banks and NBFCs offer customers the facility to login to their websites and create FDs online. You can track your investments on a real-time basis and make any change that you may want. Pre-closure of FDs can also be done online, and the money would be automatically credited to your savings account.

Traditionally, fixed deposits have been the most preferred savings instrument in India. With NBFCs and other companies entering the market, today you have several options to choose from. FDs offer a lot of flexibility and convenience while guaranteeing the safety of your money. It is one of the safest investment options available today.

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