The Best Savings Options for Pensioners

Posted on Wednesday, January 10th, 2024 | By IndusInd Bank

Retirement, an important milestone in your life, is a time to relax and spend quality moments with family and friends. This is also a time when financial stability is essential. In India, as a pensioner, you have an array of options to choose from to place your surplus savings. The challenge lies in finding the best savings account online that matches your goals and requirements. This blog will take you through the options available for pensioners, the reasons why pensioners must maintain a savings account, the top three savings options, and how IndusInd Bank can help you in your journey of savings post-retirement. 

Why should pensioners maintain a savings account?

A savings account can be quite beneficial to you if you are an individual who has retired and would like to receive income in the form of a regular pension. Here are some of the reasons why a pensioner must maintain a savings account:

• Financial security and liquidity

A savings account is a safe place that protects your funds as well as helps you access them as and when required.

• Banking services

A savings account grants access to various banking services like ATMs, online banking, fund transfers, bill payments, etc.

• Interest income

By maintaining a savings account, you can safeguard your funds, as well as earn a modest income by way of interest on the amount deposited in the account. Though, in a small way, it helps you tackle the effects of inflation and helps preserve the value of money.

• Independence

With digital processes in place, you can open a savings account online with ease. Additionally, a savings account like the Indus Senior Citizen Savings Account by IndusInd Bank helps you manage your finances, make payments, fund transfers, and conduct transactions at your comfort. 

• Convenient investment

Pensioners who wish to invest in a fixed deposit or other financial instruments like a mutual fund must have a savings account, as it helps in the seamless transfer and withdrawal of funds.

• Financial planning and budgeting

You can use a savings account to automate most of your recurring expenses, like rent or maintenance, bills, or credit card payments. This enables better financial planning and helps you manage your finances efficiently and in a stress-free manner.

Top three saving options for pensioners

In India, there are numerous savings options where you can park your retirement corpus to generate a risk-free return from it. However, you must evaluate your risk appetite, regular fixed and variable expenses, sources of income, financial goals, and investment time horizon before you finalise any option. This assessment helps you allocate your funds proportionately to meet both your daily requirements and your financial goals. Some of the saving options available for pensioners are: 

1. Fixed deposit (FD) Accounts

One of the most stable choices of savings for pensioners is the fixed deposit account. A lot of banks offer FDs accompanied by high-interest rates for pensioners. Though an FD offers flexibility in terms of investment tenure and interest payout at frequent intervals monthly, quarterly, half-yearly, or annually, the funds remain blocked in the account for a specific period. FDs are a great savings option, especially if you have specific short-term or long-term goals that can be met with the maturity of the FDs.

Another option available if you wish to save on taxes is the tax-saving FD account. You can claim a tax deduction of around ₹1,50,000 u/s 80 C of the Income Tax Act, 1961. Note that the interest accrued on your FD amount is taxable. Though an interesting option, this FD has a lock-in period of 5 years.

2. Senior citizen savings schemes (SCSS)

These are schemes backed by the government, wherein you can invest a lump-sum amount either jointly or individually. This also gives you tax benefits in addition to regular income. Currently, these schemes offer a higher interest rate in contrast to the regular FD, which makes it an attractive option. However, these schemes come with a lock-in period of 5 years, which can be extended upon maturity if necessary.

3. Senior citizen savings account 

The senior citizen savings account is a popular savings account among pensioners. These accounts have been designed to cater specifically to senior citizens or pensioners. Savings accounts like the Indus Senior Citizen Savings Account offered by IndusInd Bank not only offer you higher interest rates but also offer a multitude of benefits like customised banking services and zero-balance accounts. It is important to divert a portion of your income to your savings account, as it helps in times of emergencies as well as helps meet your liquidity requirements.

Why choose an IndusInd Bank Savings Account?

The Indus Senior Citizen Savings Account has been designed keeping in mind the requirements and welfare of older residents, which includes pick-up services and high-interest rates on fixed deposits. Note that the Indus Senior Citizen Savings Account allows even a person who is not above 60 years of age to be part of a joint account. However, in such a case, the primary account holder, or the person who opens the account, should be aged 60 or above. Furthermore, the process of opening this IndusInd Savings Bank Account is quite simple and completely digitalised. Let us dive into its features and offerings.

Features of Indus Senior Citizen Savings Account

• You can choose your customised account number and apply for the bank account online without the hassle of paperwork.
• It offers a high-interest rate on FDs an additional 0.5% is offered for senior citizens.
• 35% discount is offered on small/medium lockers for the first year.
• You can group accounts of up to two family members. All three accounts can enjoy the premium benefits free of cost. The balance can be maintained through any or all of the account/s.
• It offers free pickup and delivery of cash and cheques from your doorstep. 
• Issues and queries can be resolved without heading to the branch. You can connect directly with the branch manager via a video call.
• The IndusMobile App helps you access your account anywhere, anytime. You can also enable fingerprint authentication on your app and stop worrying about your password. The app can be used to make payments, order chequebooks, apply for a locker, change your debit card PIN, and a lot more!
• Recurring payments can be automated by setting up the e-mandate. This ensures no payment gets missed out. 
• The account provides a lot of offers on shopping, health, and well-being.

Explore the offerings from IndusInd Bank to start enjoying these advantages and features today!

Conclusion

As you approach or cross the age of sixty, choosing the right savings account becomes crucial to ensuring peace of mind in addition to financial stability. This is where the Indus Senior Savings Account by IndusInd Bank becomes your financial ally. With a widespread network of branches across the nation, particularly in urban centres, this account ensures the security of your funds while opening doors to a host of benefits. From elevated deposit interest rates to exclusive discounts and insurance coverage, this account is meticulously crafted to cater to the unique needs of elderly individuals. 

By making an informed choice, you can embark on your retirement journey with confidence! So, why wait any longer? Apply Now to enjoy the features and benefits of the Indus Senior Citizen Savings Account.

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 making any financial decisions based on the contents and information.