When it comes to retirement savings, senior citizens should choose fixed-income investments, which provide a steady source of income while posing less risk than stocks and mutual funds. Consequently, for older people, a fixed deposit (FD) strategy, which provides a fixed income, can be a solid option, but the only risk is inflation risk. Annual inflation rate in India rose to 7.79 per cent in April 2022, and taking into account the risk appetite of senior citizens, here are four safe fixed income investments that will deliver inflation-beating returns of over 8% for them .
Transport Development Finance Corporation Limited (TDFC)
Since Tamil Nadu Transport Development Finance Corporation Limited (TDFC) is a non-banking financial company wholly owned by the Government of Tamil Nadu, there is no risk associated with deposits or returns. This NBFC has two fixed deposit options: one is the Periodic Interest Payment Scheme (PIPS), in which the interest is paid monthly, quarterly or annually, and the other is the Monthly Multiplier Scheme (MMS), in which the interest rate is compounded. Is. Paid quarterly and with principal amount on maturity. The corporation offers an interest rate of 8.25 per cent on deposits of 36 to 48 months under the MMS program and a maximum rate of 8.50 per cent on deposits of 60 months to elderly persons. Under the PIPS scheme, senior citizens can get an annual rate of 8.51 per cent on deposits of 36 to 48 months and 8.77 per cent for deposits of 60 months.
Periodic Interest Payment Scheme (PIPS) Interest Rate
see full image
Monthly Multiplier Scheme (MMS) Interest Rate
see full image
Tamil Nadu Power Finance and Infrastructure Development Corporation Limited (TNPFC)
TNPFC (Tamil Nadu Power Finance and Infrastructure Development Corporation Limited) is another NBFC wholly owned by the Government of Tamil Nadu. The firm offers two types of fixed deposit options: non-cumulative fixed deposits, where interest is paid monthly, quarterly or annually, and cumulative fixed deposits, where interest is compounded quarterly and paid on maturity. Senior citizens can get a maximum rate of 8.50 per cent on deposits of 60 months with non-cumulative fixed deposits that come with maturities of 2, 3, 4 or 5 years. Senior citizens will get 0.5 per cent additional interest on cumulative fixed deposits of 1, 2, 3, 4 and 5 years. Senior citizens can earn a maximum rate of 8.50 per cent on a deposit of 60 months.
Non-Cumulative FD Interest Rate
see full image
Cumulative FD Interest Rate
see full image
Shriram Transport Finance RD
Shriram Transport Finance’s Recurring Deposit has been rated “FAAA/Stable” by CRISIL, indicating the best possible protection in terms of both fixed deposits and returns, as well as “MAA+/ with stable outlook” by ICRA Indicates highest credit quality. The maturity period of this RD ranges from 12 to 60 months, and one can start investing with minimum investment 500 per installment. There is no additional interest rate benefit for senior citizens, however, the company offers above 8% returns on inflation-pressed 36 months to 60 months deposits to both general customers and senior citizens.
see full image
North East Small Finance Bank RD
North East Small Finance Bank (SFB) is insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) regulated by the Reserve Bank of India. DICGC covers the principal and interest on savings, fixed, current, recurring, and other deposits held with any commercial or co-operative bank, to a certain extent. Five lakh. North East Small Finance Bank recently revised its interest rates on April 1, 2022, and as a result of the revision, the bank is currently offering senior citizens a maximum rate of 8% on RDs maturing in two years . It is now the only bank in the country to offer an RD return of 8%, which beats inflation.
see full image