The world of investments has traditionally been dominated by men and women have been excluded from this domain. However, with more and more women deciding to pursue a career and contribute to the family income, things are changing rapidly. Women are being consulted before significant financial decisions are taken. Many working women are empowered to decide how they invest their savings. Here’s why women should have their own investments along with the considerations for investment options.
Many working women stay single by choice. Such women need to have sufficient funds to fall back on in case of eventualities such as accidents, illnesses or loss of job. While most companies offer medical insurance to their employees, the claim amount per year is limited. Your job itself might be jeopardised in case you are incapacitated for a long period of time. If you have old parents who are financially dependent on you, you need to make provisions for their medical care as well.
Many married women compromise their career in order to look after their families. They may take up part-time jobs or less-paying jobs in order to have the flexibility of more family time. They may even decide to take temporary breaks from their career. It is important for such women to invest their money wisely and create a decent corpus for themselves which can be used in case of emergencies.
There are no guarantees in life. The number of divorces and separations in most Indian cities is on the rise. There are instances of women being widowed at a young age and having to take on the mantle of the bread winner of the family. By investing money in a prudent manner, in instruments such as fixed deposits for women, women can ensure that they have funds to back them up in case of any eventuality.
Investment Considerations for Women
When making investments, here are a few investment considerations, women should keep in mind:
Women investors give a lot of importance to the security of their investments. Investing in fixed deposits will ensure the safety of capital and also give guaranteed returns. The interest rates offered by banks have fallen in recent times. It will be wise to consider investing in fixed deposits offered by NBFCs and other companies which provide higher FD interest rates.
For instance, Bajaj Finance Fixed Deposit offers extremely attractive interest rates and come with an FAAA rating from CRISIL and MAAA from ICRA. The Bajaj Finance FD calculator helps you to know your maturity value in advance and enables you to take informed decisions.
Fixed deposits offer you the flexibility of choosing a tenor that suits you. The FD calculator shows you the returns that you get for various tenors that you may choose. You can start an FD with an amount as low as Rs.25,000/-
If liquidity of your investments is important to you, you can opt for a non-cumulative FD for women and receive periodic payments. You can opt for a monthly, quarterly, half yearly or yearly payout depending upon your requirement. If you do not need periodic payments, you can choose a cumulative deposit that reinvests the interest amount to generate higher returns.
As a woman, there may be several occasions in life when you need a lump sum amount. An FD gives you the option of taking a loan against FD as collateral. Most financial institutions offer 70 to 90 % of your FD as the loan amount. The interest on the loan will be 2 to 2.5% higher than the FD interest. The advantage is that you continue to get interest on your FD even after availing the loan.
One of the best ways for women empowerment is by encouraging them to have investments in their own name. Fixed deposits are one of the safest modes of investments for women. It gives them assured returns and helps them to build a sizeable fund that they can use in future.