The benefits of long-term investing for retirement planning

An important category of long-term investment that investors consider in the earlier stages of their investment journey is investing for their retirement. One of the most effective long-term investment plans that can help investors plan for their retirement is a Fixed Deposit (FD) account.

The benefits of long-term investing for retirement planning

While following a retirement investment plan by investing in FDs, investors must ensure that the bank in question offers a high interest rate, like IndusInd Bank that offers the best in-class interest rates to its customers through its retirement investment plans. 

What is a long-term investment, and which is the best investment plan for retirement in India?

An increasing number of Indian investors are now recognising the importance of retirement planning and are investing in long-term investment plans with high returns. A long-term investment is generally defined as an investment to which the investor holds on for more than a year.

While planning for their retirement, it is difficult for Indian investors to estimate the corpus that they will require a few decades into the future, after they retire. Investors can use online calculators like IndusInd Bank’s FD Calculator to calculate their returns at the end of a given tenure.

This FD calculator requires investors to enter their investment amount and tenure to calculate their returns at the end of a given tenure.

What are the benefits of long-term investment in FDs?

Fixed deposit investments are secure and low risk:

    IndusInd Bank offers a fixed deposit interest rate of Up to 7.5% to its customers through its online fixed deposit accounts. Long-term investments in FDs are safe, and they offer fixed returns to the customer on a regular basis. Since they are not linked to money markets, they are also safe investment schemes. 

Opening an FD account is very convenient today:

    IndusInd Bank offers a hassle-free instant online account opening facility, helping customers open an FD account instantly online. Customers can start an FD investment directly through IndusInd Bank’s mobile banking app and start growing their income steadily. 

FDs offer high-interest rates: 

    IndusInd Bank’s FD accounts offer an attractive interest rate of Up to 7.5% to all investors. This feature is particularly helpful for retirement planning since customers can be assured of having a fixed corpus post their retirement. 

Customers can choose the auto-renewal option to repay their interest:

    IndusInd Bank customers can also choose the Auto Renewal option while opening an FD account or at any time during the tenure. This option authorises IndusInd Bank to automatically renew the customer’s FD account after it matures for the same term and the current interest rate. IndusInd Bank also offers customers multiple other options for interest payment; allowing them to receive interest payments on a monthly, quarterly, half-yearly or a yearly basis. 

They can complete their KYC online and get started with an FD:

    IndusInd Bank also offers customers the option of Video KYC, helping them start their fixed deposit investment at the earliest. After the successful completion of the Video KYC procedure, a customer can book an FD of any amount.

Tax-saving FDs help investors save taxes through their long-term investments:

    Tax-saving FDs have an investment tenure of five years. Investors who invest in these FDs can claim an Income Tax deduction of up to ₹ 1.5 lakh under Section 80C of the Income Tax Act of 1961. 

A long-term investment in a fixed deposit scheme can help investors plan well for their retirement by steadily growing their income. IndusInd Bank’s fixed deposit accounts can be conveniently opened online and can help investors accumulate a significant retirement corpus.