As you enter your senior year, finding secure investment options becomes crucial for maintaining financial stability. Fixed deposits (FDs) are popular among senior citizens since they are relatively low-risk and provide guaranteed returns. They offer a dependable solution to protect their money and ensure a consistent income during retirement. Also Read: World Senior Citizen Day: 5 Ways To Take Care Of Seniors In Family
Features of Fixed Deposits for Senior Citizen
- Tenure options: Senior citizens can choose an FD tenure ranging from 7 days to 10 years, offering flexibility in investment duration.
- Premature closure: Early withdrawal of accounts is allowed but tax-saver FDs may have penalties for premature closure.
- High deposit limits: Senior citizens can invest amounts of up to Rs 1 crore or more at higher interest rates than regular fixed deposits.
- Quarterly compounding: Interest is compounded quarterly and payments are made at maturity.
- Nomination facility: Senior citizens can designate a nominee for their FD accounts so that those dependent on them don’t face any difficulties while claiming the money.
Benefits of a Senior Citizen Fixed Deposit
- Higher interest rates: Senior citizen FDs often offer higher interest rates than regular FDs, resulting in increased income.
- Secure investment: A fixed deposit is a low-risk investment option.It provides a guaranteed income, making them an ideal choice for senior citizens.
- Regular income: Interest can be converted into monthly payments, offering a consistent income stream. These payments enhance one’s retirement income, ensuring financial security.
- Tax benefits: Senior citizen tax-saver FDs may qualify for deductions of up to Rs 1.5 lakh in a financial year under Section 80C of the Income Tax Act.
