Senior citizens can enjoy better returns on their savings and lead a peaceful life after retirement by choosing senior citizen FDs.
Investment goals and risk appetite change with age, income, and profession. The market naturally has investment tools of a diverse nature featuring various interest rates and risk levels. When discussing ideal investment options for senior citizens, the interest rates should be high, and the risk factor should be low. Senior citizen fixed deposits check both boxes.
In the Indian investment market, fixed deposits are among the most reliable investment tools. Varied types of fixed deposits serve different purposes. A senior citizen fixed deposit is specially designed to offer maximum benefits and financial independence in the golden age after retirement. Join us in the exploration of the many benefits senior citizen fixed deposits offer.
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Senior Citizen Fixed Deposit
Individuals aged 60 years or older can open senior citizen FD accounts. Several banks offer concessions and reduce the age limit to 55. The account opening requires a one-time investment and KYC documents, including age proof. Online and offline banking is available. Once the account has been opened successfully, the account holders can enjoy regular payouts and other benefits.
Important Features
An FD for senior citizens has the following key features.
- The tenure can range from 7 days to 10 years.
- Maximum and minimum investment limits vary from bank to bank.
- Willing investors must be Indian citizens. NRI senior citizens can invest via NRE or NRO accounts.
- The nomination facility is available.
- Investors can avail of the overdraft facility.
Salient Benefits of Senior Citizen Fixed Deposit
An FD for senior citizens offers the same benefits as a regular FD and some added perks.
1. Higher Interest Rates
Fixed deposit schemes offer higher interest rates than standard savings accounts without much risk. Moreover, the interest benefit is the prime feature of FDs drafted for senior citizens. Typically, the senior citizen FD interest rate can be 0.25 % to 0.65 % higher than a regular FD.
Senior Citizen Fixed Deposit Interest Rates 2024
Listed below are the top senior citizen fixed deposit schemes of 2024 with their interest rates.
|
Top Banks |
1 Year to Less Than 2 Years |
2 Years to Less Than 3 Years |
3 Years to Less Than 5 Years |
5 Years - up to 10 Years |
|
SBI |
7.30% |
7.25% |
7% |
6.50% |
|
Punjab National Bank |
7.60% |
7.80% |
7.30% |
7.30% |
|
HDFC |
7.10% |
7.65% |
7.50% |
7.75% |
|
Post Office |
6,90% |
7.00% |
7% |
7.50% |
|
Axis Bank |
7.60% |
7.60% |
7.60% |
7.75% |
|
ICICI Bank |
7.65% |
7.50% |
7.50% |
7.50% |
|
Bank of Baroda |
7.35% |
7.75% |
7.15% |
7.50% |
|
Canara Bank |
7.35% |
7.35% |
7.30% |
7.20% |
|
Bank of India |
7.00% |
7.25% |
7% |
6,50% |
|
Union Bank of India |
7.25% |
7.00% |
7.00% |
7.00% |
|
Central Bank of India |
7.25% |
7.50% |
7.00% |
6.75% |
|
Yes Bank |
6.85% |
8.25% |
8% |
7.75% |
|
Bandhan Bank |
7.75% |
7.75% |
7.75% |
6,60% |
|
IDFC Bank |
8.00% |
7.75% |
7.50% |
7.50% |
|
Indian Overseas Bank |
7.20% |
7.30% |
7% |
7% |
|
Indian Bank |
6.80% |
7.20% |
6.75% |
6.60% |
|
IndusInd Bank |
8.25% |
8.00% |
8.00% |
8.00% |
|
IDBI Bank |
7.30% |
7.00% |
7% |
6,75% |
|
Kotak Mahindra Bank |
7,70% |
7.65% |
7,60% |
6,70% |
|
Karur Vysya Bank |
7.40% |
7.40% |
7% |
6.65% |
2. Low Risk
Fixed deposits fall among the low-risk investments. Market shifts do not influence the rates, and returns are ensured. This feature makes FDs ideal for senior citizens since they often invest their life savings and have a low tolerance.
3. Regular Income Source
Senior citizens, especially those retiring, do not have a regular source of income. They become financially dependent on others or spend their savings. An FD for senior citizens pays the accumulated interest on a monthly, quarterly, or annually, creating a fixed source of income.
4. Automatic Renewal
Most banks offer auto-renewal on senior citizen fixed deposit schemes. The FD returns get re-invested if the account holders have provided no other instructions. Therefore, the auto-renewal feature conveniently enables senior citizens to have a strong investment plan without making much effort.
5. Easy Maintenance
After the initial account opening and investment, no further action is required from the account holders’ end. The interest will be automatically transferred to the registered account. The primary amount will also be auto-generated on the maturity date. Since the senior citizen FD interest rate will be locked in throughout the tenure, regular market monitoring is also not necessary.
6. Tax Savings
Senior citizens can save on tax and maximise their returns by booking a 5-year-long FD. The 80C section of India’s IT Act of 1961 permits investors to request tax deductions of up to INR 1.5 lakhs.
To Conclude!
Senior citizens can enjoy better returns on their savings and lead a peaceful life after retirement by choosing senior citizen FDs. Note that some banks and NBFCs offer higher interest rates to investors over 80 years. Examine the interest rates, various charges, and tax implications to select the best match.
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