As global economies mature, one significant trend that emerges is the steady decline in interest rates. For decades, interest rates have played a pivotal role in shaping economic decisions of consumers, from savings to investments. However, today, the story is different. Interest rates are falling, and for many, the worry about 100% guaranteed long-term returns on savings is very real.
Take India as an example: In July 1995, government security (G-Sec) rates* were at a high of 14.48%, but by July 2024, they have plunged to just 6.95%. This trend is not unique to India. In Europe, interest rates have dwindled to 3.9%, and in Japan, they have reached a meagre 0.75%. The global financial environment has made it challenging for those seeking stable, long-term guaranteed returns.
But here lies a rare opportunity. In a time where interest rates are on a constant downward slope, there is an option to secure a long-term investment guaranteed return for the next 20 years. This unique proposition stands out as other short- & medium-term instruments like fixed deposits (FDs), recurring deposits (RDs), and other savings schemes may offer competitive returns, finding a long-term, guaranteed option is becoming increasingly difficult.
This is where PNB MetLife Guaranteed Future Plan shines. With the ability to preserve a rate of return as high as 6.23% for 20 years, this insurance plan solution becomes an invaluable asset for those looking to safeguard their future. What makes it even more enticing is that PNB MetLife has increased the returns to customers in this guaranteed savings solution, in the times when rate of returns are generally dropping.
This solution offers more than just security; it also provides the peace of mind of tax-free returns. Many traditional savings instruments are subject to taxes as high as 30% based on one’s income slab, but the returns from the Guaranteed Future Plan are completely tax-exempt. This advantage makes a significant difference in long-term wealth accumulation.
This increase in benefits for customers along with the launch of an industry-first manufacturing themed fund with their ULIP Plans, might have helped PNB MetLife win consumers’ trust and become the fastest growing Life Insurance company for the month of Aug’24 with 71% year-on-year growth in retail new business premiums.
For those seeking a stable financial future in a world of uncertainty, this is a golden opportunity to lock in guaranteed and tax-free returns for the next 20 years, no matter where the interest rates go next.
*Source: https://tradingeconomics.com/india/government-bond-yield
