How FD Can Help Senior Citizens in Their Financial Well-Being

Posted on Friday, November 11th, 2022 | By IndusInd Bank

Earning money for a comfortable and easy life is just one part of the story. The second part of the story begins when you start investing that money for a secure future, especially for your life post-retirement. As a senior citizen, you need to plan your finances in a way that gets you good returns and helps you sustain your standard of living.

But as people age, their investment choices become more stable; guaranteed high returns with minimal risk become a priority. And this is where fixed deposits come into play. With a term deposit, senior citizens can invest their funds for a pre-determined period and generate risk-free returns. What’s more, they can enjoy a relatively higher senior citizen interest rate along with tax savings deposit feature to maximise their earnings.

Read on to know how senior citizen fixed deposits can help ensure your financial well-being.

Senior Citizen Fixed Deposit Scheme

Senior citizen fixed deposits are tailor-made investment solutions to meet the financial needs and aspirations of senior citizens. Individuals above the age of 60 are eligible to invest in an FD with a higher senior citizen saving scheme interest rate.

With IndusInd Bank, you can grow your funds over a flexible tenure of up to 10 years and earn fixed deposit rates as high as 7.75%* for senior citizens. And if that’s not enough, our hassle-free online booking process will ensure you enjoy the most competitive benefits of investing anytime, anywhere.

Here are the various benefits of FD investments for a quality financial life for senior citizens-

1. Low Risk

As compared to other investment options, a term deposit is more stable. The interestrate on senior citizen FD is fixed throughout the tenure – free from market fluctuations or economic performance – you know what to expect from this investment. In fact, you can use an FD interest rate calculator to calculate your estimated returns upon maturity.

2. Regular Source of Income

Losing a significant source of their income is the biggest financial challenge senior citizens face post-retirement. However, an FD investment can help ensure you still have some funds coming in to maintain a comfortable lifestyle during your golden years.

Apart from earning competitive senior citizen interest rates, you have the flexibility to choose the method of interest payout based on your financial needs. At IndusInd Bank, we offer you a regular interest payout facility on a monthly, quarterly, half-yearly, yearly, and maturity basis.

This way, your FD interest acts as a supplementary source of income to help you manage your financial needs with ease.

3. Premature Withdrawal

Another way fixed deposits ensure your financial health is by offering a premature withdrawal facility. When common health issues in old age result in significant medical expenses, you can always turn to your FD investment to get you through this financial emergency. 

You easily withdraw a part of your investment to meet your needs while the remaining funds continue to earn interest and grow.

4. Tax Savings

The most exciting benefit of investing in a fixed deposit with IndusInd Bank is the tax savings that come along with it. Under section 80C of the Income Tax Act 1961, you can claim up to 1.5 lakhs as tax deductions in a financial year on your tax savings deposit. What’s more, senior citizens can even avoid or reduce TDS on their interest earnings and claim a deduction of up to Rs. 50,000 under section 80 TTB of the IT Act.

However, a tax saving FD has a lock-in period of 5 years, which means you cannot opt for premature withdrawal on these funds. Nonetheless, investing in a tax-saver FD is an excellent choice if you want to save significantly on taxes and don’t mind the longer lock-in period.

To Sum Up

Safe to say, senior citizens can make the most of their funds and enjoy competitive benefits by opening a fixed deposit. A long-term FD will fetch higher interest rates while being a stable source of income to meet your needs post-retirement.

Ready to invest with IndusInd Bank? Check out our flexible FD offerings – book a fixed deposit today by visiting our website and take your first step towards a secure future.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.