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Seniors should consider fixed deposits because they come with extra perks like : The biggest benefit is that senior persons receive interest rates that are greater than average. Consequently, they can make more money as a result. In contrast to mutual funds and other investment vehicles, this sort of investing carries no risk. As a result, it provides an ongoing stream of income throughout later life.

Getting an assured rate of return is another important reason why senior citizens should invest in fixed deposits. Senior citizens who get interest income of up to Rs. 50,000 are exempt from TDS deduction. Interest payout choices are flexible for senior citizens. For instance, they could choose annual interest income,yearly, half-yearly, quarterly, and monthly. Individuals’ interest in FDs can be used as a steady monthly income during retirement years.

Eligibility Criteria for Senior Citizen FD

Senior citizens are only considered by banks if they are 60 or older. Additionally, some banks cater to extremely senior citizens. Individuals over the age of 80 are included in this. They receive higher interest rates on FDs than others. Additionally, eligibility requirements occasionally differ between banks. For instance, Senior Citizen FDs can be requested from a number of banks by individuals over the age of 55. It comes with its own set of terms and conditions and is included in one of their unique FD schemes.

Benefits and Key Features of Senior Citizen FD

• Fixed deposits for senior citizens have longer terms, ranging from one week to ten years.
• Senior citizen FDs receive a higher interest rate from banks.
• Senior citizen FD offers the nomination option, which is not available in many fixed deposits.
• Senior citizens can select a special FD, such as a tax saver fixed deposit, as their option.
• The fixed period lock on this type of FD typically lasts at least five years.
• Interest can be earned on a monthly, semiannual, quarterly, or annual basis. They can even select when they want their interest returns.
• Senior citizen FDs have different maximum limits set by different banks. Some have set it at one crore rupees, while others have lowered or raised it.

Is Senior Citizen FD a Good Investment?

• A senior citizen fixed deposit is an investment that any elderly person can make blindly because it provides stability and security. Several reasons for this include:
• Senior citizens can use the interest they earn on a senior citizen FD to cover their costs. It provides steady returns and serves as a safety net for senior citizens by shielding them from market fluctuations.
• Senior citizens who choose a FD can choose a FD with a low minimum deposit. They can deposit as little as Rs. 25,000 and do not require a large initial investment to open an FD.
• It is simple to withdraw this kind of FD, especially in times of emergency. Senior citizens can use it to get money.
• The application process for a senior citizen FD is fairly straightforward because the purpose of opening one is to use it in times of need. In the past, individuals only had the option of going to the bank or office and filling out the application there. However, they can now easily open an FD account and finish the application process online.
• Seniors can set up a fixed deposit in any amount they want from the comfort of their own homes. Bank employees with specialized training interact courteously with senior citizens, answer their questions, and explain the application process.