When you have reached a stage wherein you wish to start investing your saved money, you would have come across stable and volatile investment options. During the initial stages of investment, it is ideal to invest in options that provide guaranteed returns like Fixed Deposit (FD), Pension Funds, and Provident Fund. Now, you would have also heard about the two types of provident funds, i.e., Provident Fund (PF)/ Employee Provident Fund (EPF) and Public Provident Fund (PPF). If you work with an organization with more than 20 employees, EPF is automatically deducted from the monthly salary. An equal amount is added by the employer and is deposited in your EPF account. Once you decide to leave the job or you retire, the accrued sum along with the added interest is paid to you. PPF, on the other hand, can be initiated by any Indian citizen from a Bank or Post Office.
Difference Between Public Provident Fund and Employee Provident Fund
|Run by Government of India||Run by the EPFO (Employees’ Provident Fund Organization)|
|Both self-employed and salaried employees are eligible. Unemployed individuals are also eligible||Only salaried employees are eligible|
|The individual opening the account contributes||The employee and the employer contribute together|
|It is payable after 15 years. This period can be extended to 5 years after the maturity.||It is payable during the time of retirement. In case of death, it will be paid to the direct heir|
|Tax deduction up to Rs. 1,00,000 under Section 80C||Tax deduction up to Rs. 1,00,000 under Section 80C|
|No tax is applied on the maturity of the account||Withdrawal before 5 years is taxable|
|Premature withdrawal allowed between 3-6 years. Complete withdrawals permitted after 6 years||You can make a premature withdrawal only for your daughter’s wedding or purchasing a house|
What is the Best Choice?
To choose among an EPF and a PPF, the best choice would be to invest in a PF as you can share the amount you invest with your employer. Also, a PF/EPF offers higher interest rates compared to a PPF account (8.55%). The government determines the interest rate and the returns provided by a PF account. You can also grow your Provident Fund (PF) returns by investing in assured investment options like Fixed Deposit for Senior Citizen.
With leading NBFCs (Non-Banking Financial Companies) like Bajaj Finance, you can earn higher Senior Citizen Fixed Deposit Interest Rates up to 9.10%. The company is accredited with CRISIL’s FAAA and ICRA’s MAAA stable ratings. You can check your eligibility and calculate your returns using the online FD calculator on the website.
Benefits of Investing in Fixed Deposit for Senior Citizen with Bajaj Finance
Below mentioned are a few benefits of investing in FD with Bajaj Finance:
- Assured returns without the influence of market rate fluctuations
- Flexible tenor that ranges between 12 months and 60 months
- Choose between a cumulative FD and a non-cumulative FD
- Select the frequency of interest payout from monthly, quarterly, half-yearly, and yearly basis
- Get 0.35 increased Senior Citizen Fixed Deposit Interest Rates
- FD laddering by opening multiple FD accounts with different tenors and maintain liquidity
- Take loan against FD and use up to 90% of the accrued sum
- Make premature withdrawal by paying a penalty charge for the same
- Quick and hassle-free online application procedure with minimal document submission
- 24/7 customer care support online as well as offline for direct assistance
With such attractive benefits of FD, you can now enjoy your retirement years without much hassles with Bajaj Finance!