Fixed Deposits have been an all-time favorite of Indian investors, especially as an investment option for senior citizens, and its easy to see why. They offer many benefits from easy liquidity to guaranteed returns. However, today investors have a new avenue for investment: Bitcoin investments. These have become quite popular over the past year.
Bitcoins were first introduced on 3rd January 2009 and are limited to just 21 million units. To understand the better investment choice between the two, it is important to understand both investment instruments carefully, especially when you are considering an investment for retirement.
So, let’s analyze which of these investments are ideal as an investment for retirement based on three important factors.
Safety of Investment
Fixed Deposits offer you a high standard of security and guaranteed earnings. So, no matter your age, they provide a safe environment for the growth of wealth. What’s more, FD for senior citizens offers higher interest returns.
From banks to NBFCs, senior citizen fixed deposit options are plenty and come with various add-on benefits such as the choice between cumulative interest payouts and non-cumulative interest payouts.
When you are looking for safe investments, consider Bajaj Finance’s Fixed Deposits. They are rated ICRA’s MAAA (Stable) and CRISIL’s FAAA/Stable, the highest rating in the industry, ensuring that your money is safe and sound.
Bitcoin, on the other hand, is priced on speculation. As a currency, it is not secured by any agency or government. The value is purely based on market demand and supply. Further, for the moment, the Indian Government does not have a policy on Bitcoin investments and the RBI has instructed all its associates not to deal in Bitcoin. This makes it a risky investment not suited for retirement where you focus is on safety.
Return or Earnings
When it comes to retirement, getting regular income that you can bank on is essential and so, you look for the highest return along with safety. An FD checks the right boxes when it comes to returns. When looking for the highest FD interest rates, consider starting an FD with Bajaj Finance as they offer interest rates up to 8.75% on fixed Deposits for senior citizens. Furthermore, you can always check and confirm the return you will earn by using an FD calculator. This online tool will help you plan your retirement with ease.
In contrast, while Bitcoin may have great potential as an investment, you are still dealing with speculation. When you are considering investments for retirement, it is safer to make informed investments where you know or can predict the expected returns over the long term. Bitcoin, at the moment, is a very volatile investment and functions in the unregulated cryptocurrency marketplace.
Long Term Potential
A Fixed Deposit offers a clear and secure long-term investment return and this assured return can be easily calculated by you. Usually, you should choose FDs for 5 years or less to earn returns that beat inflation. You can always renew the FD for a new term if the interest rate is high, and gain from higher interest rates on renewal.
When it comes to Bitcoin, you may have high long-term potential as it is based on a blockchain technology that holds a lot of promise. Some experts suggest that it can be as powerful as the internet revolution was in the ’90s. However, for the Bitcoin to increase in value consistently, it needs to have access to the right circumstances such as widespread acceptance in the currency markets around the world. With many countries like India taking a cautious approach to this new currency, it’s not yet time to place your future on this cryptocurrency.
As you can see, investments in Bitcoin may seem exciting now; however, it comes with high risk and an uncertain future here in India. As an investment for retirement, Bitcoin does not pose as a one-stop solution. Even if you are investing in this option, choose safe options like FDs to balance your portfolio.