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Navigating Senior Citizen Fixed Deposits: A Comprehensive Guide
Posted on Wednesday, September 20th, 2023 | By IndusInd Bank
Summary: From higher interest rates and guaranteed returns to tax advantages, senior citizen fixed deposits provide a range of benefits for a stable financial path after retirement.
As people get closer to retirement, the way they manage their finances changes. While the income flow from jobs may decline, focus often shifts to finding ways to have a reliable passive income. One of the most dependable investment solutions designed for senior citizens is the “Senior Citizen Fixed Deposit.” This investment option offers safety and attractive returns, ensuring a steady income post-retirement. Whether you are getting close to retirement, or making financial plans for a loved one, it is essential to understand the nuances of a senior citizen fixed deposit. This guide will give you the information you need to successfully negotiate the fixed deposit market.
What Is a Fixed Deposit for Senior Citizens?
A senior citizen fixed deposit is a type of investment created specifically for people aged 60 and above. It assists them in growing their savings, and can reduce their tax liabilities. This fixed deposit stands out because it provides higher interest rates than standard fixed deposits. This investment option is particularly beneficial for senior citizens with limited incomes who want to handle their finances responsibly.
Is a Senior Citizen Fixed Deposit a Smart Investment Option?
The following key features and benefits of senior citizen fixed deposits make them the ideal investment choice for individuals aged 60 or more:
| Higher Interest Rates | Senior citizen FD rates are higher than standard fixed deposits, offering better returns. |
| Guaranteed Returns | Fixed deposits are a secure and reliable investment option that protect savings from market volatility. On maturity of the fixed deposit, guaranteed returns are credited to the account. |
| Flexible Tenure | Senior citizens can choose a flexible fixed deposit tenure ranging from seven days to ten years, based on their financial needs and goals. |
| Periodic Interest Payouts | Interest payments can be scheduled monthly, quarterly, or annually, enabling individuals to manage cash flow efficiently. |
| Loan against Fixed Deposit | These fixed deposits can be used as collateral to acquire loans for unforeseen expenses, giving instant access to funds without compromising the deposit. |
| Tax Benefits | Senior citizens can save money on taxes by investing in tax-saving fixed deposits with a five-year lock-in period, under Section 80C of the Income Tax Act 1961. They can claim a deduction of up to INR 1,50,000 annually. |
IndusInd Bank’s Senior Citizen Fixed Deposit Account
IndusInd Bank’s senior citizen fixed deposits are tailored to meet the unique needs of citizens aged 60 years and above. Let us take a closer look at its benefits:
- The account can be initiated with a minimum deposit of INR 10,000
- Best FD rates for senior citizens, which are about 0.50% more than those offered to regular customers
- Flexible tenure ranging between 7 days to 120 months
- Nomination facility is available, to ensure a smooth transition of funds in the event of unforeseen circumstances
- Convenience of premature closure offers flexibility to access funds when required
Steps To Open a Senior Citizen Fixed Deposit Account with IndusInd Bank
- Click the Apply Now button on this webpage.
- Register using your mobile number.
- Provide your PAN card and Aadhaar card details for verification purposes.
- Fill in essential personal details like name, date of birth, contact information, address, etc.
- Enter the amount you want to deposit and complete the KYC through video verification.
- Once your account is established, you can add funds and earn interest over time.
Take the first step to saving for retirement by opening a senior citizen fixed deposit account with IndusInd Bank. Apply online!
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.
