FDs Are A Great Way To Achieve Financial Well-Being For Senior Citizens

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 investment option that is undoubtedly safer and lower in risk than stocks and mutual funds. Since the interest rate does not fluctuate along with the market rates, the returns are guaranteed.

Regular interest payouts are the biggest asset of senior citizen FDs as it acts as a regular source of income.

The tax-saving FDs will also help the investors to save on income tax and further enhance their savings.

To sum up, ensuring financial well-being in post-retirement life is one of the top priorities of every individual. However, finding a safe and secure option is the right way to move forward to ensure that there are no monetary difficulties in the future. In this regard, retirees can strategically invest in this long term deposit to amplify their wealth.


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