Best Pension Plan in India
Pension Plans can help in growing savings to secure your post-retirement years. When choosing the right pension plan, it is important to choose one that offers higher dividends on maturity. Public Provident Funds, National Savings Certificates, Fixed Deposits, Government Bonds are some of the popular Pension Plans that suit need of different investors. However, you must choose a Pension Plan that suits your financial goals and requirements.
Types of Pension Plans
Here’s a look at the different Pension Plans available.
- Public Provident Fund (PPF) - Public Provident Fund (PPF) is a reliable long-term investment plan with a lock-in period of 15 years. As one of the most preferred retirement plan for saving and growing funds, PPF can grow your savings steadily. Interest rates for PPF are determined by the government, and it falls under Section 80 C of the Income Tax Act.
- Fixed Deposit (FD) - As one of the most flexible investment avenues, FD offers tenors ranging from 1 to 5 years. Bajaj Finance offers one of the highest FD interest rates ranging from 6.50% to 6.75%, on choosing cumulative FD schemes for tenors of 36 months or more.
The returns on fixed deposit are unaffected by market fluctuations, which ensures highest safety of your principal and returns.
- National Savings Certificate (NSC) - This investment starts from as low as Rs. 100 with no upper limit. Deposits made up to Rs. 1.5 lakh qualify annually for tax exemption under section 80C, Income Tax Act. NSC investment comes with a tenor of 5 years.
- Senior Citizen’s Saving Scheme (SCSS) - This is a government-sponsored savings scheme that helps senior citizens ensure a steady flow of income. The scheme is available for senior citizens and offers a 5-year tenor, which can be extended up to 3 years on maturity. One may have more than one account and the upper limit is ₹15 Lakhs. Interest is payable quarterly and is fully taxable. Once invested the interest rate remains intact until the end of the term.
- National Pension System (NPS) - It is regulated by Pension Fund Regulatory and Development Authority (PFRDA). It is a long-term retirement plan, which is a mix of equity, fixed deposit, corporate bonds, liquid funds and government funds, among others.
- Government Bonds - Government Bonds are best known alternatives to FDs in India. The bonds are reliable long-term investments that procure marginally higher returns than FDs.
Why Bajaj Finance Fixed Deposit is the best pension plan?
Among all available pension plans, Bajaj Finance Fixed Deposit comes across as a reliable investment avenue offering assured returns and the highest safety of deposit. You can get assured returns up to 6.75% with flexible tenors ranging from 12 to 60 months.
Investing in a Bajaj Finance online FD is very easy. Once you’re verified, you simply need to enter your intended investment details, and pay via NetBanking or UPI (for amounts lower than Rs. 1,00,000). Once your payment process is completed, you receive the acknowledgement.
Make a smart investment choice with Bajaj Finance online FD and skip crowded queues, to reap the benefit of an end-to-end online FD process.