Finance Blog

Several fixed deposit schemes offer the best interest rates for senior citizens, along with other lucrative benefits. Opting for a senior citizen fixed deposit can help individuals generate a steady income even after their retirement. Several reputed banks provide term deposit plans called Senior Citizen Fixed Deposits with preferential interest rates for people over 60. Apart from the higher interest rate, which can be up to 0.5% higher than that offered to the general public (in the case of regular fixed deposits ), these FD accounts for seniors have a number of other advantages. Some of these are as follows:  They provide specific interest rates that are comparatively higher, leading to increased revenues. It makes a secure space where the money can increase steadily. As a result, the retirement years can be peaceful. The interest on these fixed deposits can easily be converted into monthly payments. The FDs are a tax-saving investment that helps in earning income tax deductions...

The popularity of fixed deposit investment is not only limited to the ones living in India; even the NRIs enjoy it. NRI fixed deposits offer a great way to build wealth in India while living and earning outside, that too without taking too many risks. If you are planning an investment, then there are a few things that you need to know about this investment instrument to make a better decision. Things to know before investing in NRI FDs Sub-type The first thing to consider here is the sub-type. Now, there are three sub-types of NRI FDs, NRE, NRO and FCNR. The difference between these three is in terms of investment and taxation. The return, however, remains guaranteed. Taxation The second point to be aware of when you open an FD online for NRIs is the taxation applicable to it. Now, if you invest through NRE or FCNR accounts, then the income generated in the FD is not liable for taxation. But, the FD interest income of the NRO account will come under income tax deduction. Reparation Th...

Fixed Deposits have always been a popular financial product, especially for senior citizens. A term deposit is preferred by them due to senior citizen Fixed Deposit interest rates . They tend to get 0.5% extra rate on their deposit amount than a regular FD holder. So let’s take a look at the features and benefits of this financial instrument. Features of Fixed Deposits for senior citizens Senior citizens can choose their FD tenure from 7 days to 10 years, as per their financial goals Senior citizens can deposit a high amount and earn and interest rates on them without risk of losing the deposit  These accounts allow you to withdraw the deposit at any time before maturity, and the bank will charge a penalty for it. Although, tax-saver FDs do not allow premature withdrawal. A nominee facility is available in the case of senior citizen FDs Opening an FD has also become hassle-free, as one can do it online without any hassle Why Fixed Deposits for senior citizens? Fixed Deposits are an...

Fixed deposits are a popular form of investment for investors looking for guaranteed returns on their money. The key feature of fixed deposits is that you get higher returns of interest than what you would get from savings accounts. The interest rate earned on fixed deposits depends on the amount deposited, the duration and terms of the fixed deposit, and the bank offering the FD. How Is Interest Calculated On A Fixed Deposit? Simple Interest and Compound Interest determine interest on a fixed deposit . Depending on the deposit size and duration, banks may use either option. Simple Interest The formula for Simple Interest (SI) :  “Principal x rate of interest x time period divided by 100” or (P x R x T/100). Where: P= Principal amount R = Rate of interest per annum T= No. of periods (in years) Compound Interest  Compound Interest (CI) = P {(1 + i/100)n – 1}  Where: P = Principal amount n = number of years i = rate of interest per period  FD Interest Calculation Formu...

FDs offer fixed returns, depositors can determine their earnings even before opening an account. It helps them to know the amount that should be invested to get the required amount on maturity to meet varied financial goals. An FD calculator can help depositors to calculate their returns within seconds. A calculator for fixed deposit returns calculation requires only a few details. Below ware the required details to open a FD online . Here are the details required to open an FD online: Choose the category/customer type as Senior Citizen. Choose the FD type or interest payout. Choose cumulative FD for reinvestment purpose and non-cumulative FD for monthly or quarterly payout. Input the deposit date. Enter the FD tenure. Enter the deposit amount.  On the screen, users can check the interest rate applicable, total interest to be earned and maturity amount. Here is a simple example.  Illustration Suppose a senior citizen invests Rs. 1 lakh in a cumulative FD and opts for reinvestm...