Know More About the National Pension System and Retirement Plan

National Pension System i.e. NPS is a pension scheme that is preferred by most investors these days. It does not offer a fixed interest rate as your deposits are invested in government bonds, corporate bonds, equities, and other assets. Therefore, the returns depend on the performance of bonds and stocks in the market. 

It is a good investment option as it provides a regular monthly pension once you retire. 60% of the accumulated funds are paid directly after retirement and the remaining 40% is invested in buying an annuity that generates your monthly pension. 

However, NPS is a profitable investment proposition only if you start early. It is because the returns will be prominent only if you have invested a substantial amount and that is possible only by investing from the onset of your career. If you are thinking about investment options that can generate stable and high returns over the long term, think of FDs. 

Why is FD an ideal investment for securing your future?

The FD interest rates in the market might be much below your expectations but FDs offer stability to your investment. Market-linked instruments are subject to market risks and might underperform due to the ailing economy. Also, the liquidity options offered by FDs are much better as compared to instruments like EPF or NPS. 

Earning high returns is possible with FD schemes such as Bajaj Finance FD. The high-interest rate offered by Bajaj Finance FD will fetch enough returns. Therefore, you can reinvest your returns in cumulative FDs to collect a substantial corpus till retirement. The benefits of Bajaj Finance FD concerning retirement planning are given below:

Planning investment goals 

As FDs generate fixed returns, estimating the returns before investing becomes easy. Tools like an FD calculator help you calculate the returns and modify your financial plans accordingly. The flexible tenor option offered by Bajaj Finance FD ranges between 12 and 60 months. With the help of the FD return calculator, you can identify the amount and tenor that is required to reach your investment goal. 

Unforeseen expenses 

Life is full of uncertainties due to which unforeseen expenses might arise. These emergencies can disrupt your financial plans and goals easily. Bajaj Finance FD recognizes it and allows you to avail of a loan without collateral against your FDs. Up to 75% of the FD value can be opted as a loan amount to manage any emergency or unforeseen expense. 

Also, the lenient withdrawal rules allow you to withdraw your deposits whenever you find it necessary. The only rule is that the deposits must complete at least 3 months from the investment date. 

High returns 

With an interest rate of up to 6.75%, Bajaj Finance FD ensures that you earn enough interest income upon maturity. You can also opt for periodic returns by investing in its non-cumulative FDs. If you need a stable income alternative after retirement, you can invest a chunk of your savings in Bajaj Finance FD. It also offers a 0.25% higher FD rate to senior citizens. 

For example, on investing Rs. 30,00,000 in a non-cumulative FD offered by Bajaj Finance for 5 years, you will get the following interest payout options: 

You not only earn an interest income high enough to manage your regular expenses but investing in Bajaj Finance Fixed Deposit is also safe as it has been credited for being a stable instrument by CRISIL and ICRA which are the most reputable credit agencies of India.

NPS will ensure that you get a monthly pension after retirement. However, its benefits depend on the number of years you have contributed towards NPS and the performance of the bonds and stocks in which your funds get invested. Also, the liquidity options offered by NPS might not help you manage an unforeseen expense or emergency. Instead, invest a part of your income in Bajaj Finance FD and get enough returns till retirement. Apart from the high interest rate, it offers regular interest payouts. Also, it is a safe alternative that is recognized for its stability by the leading credit rating agencies of India.