7 Amazing Benefits Of Senior Citizen Fixed Deposits

Fixed deposits are an excellent investment option. They provide security and stable benefits, unaffected by the fluctuations of the market, unlike mutual funds. Senior Citizens need that guarantee while investing their hard-earned money.

With retirement comes the uncertainty of finances. If you are about to retire or have retired, you will look for investment options to sustain yourself for the rest of your lives with ease. Besides high interest rates, fixed deposits have several other perks to offer.

Top 7 benefits for Senior Citizens Fixed Deposit

Fixed Rates Of Interest

The rate of interest in a fixed deposit is constant. It does not get affected by the ups and downs in the market, thereby offering more stability.

Other investment options may carry a higher risk for retired investors. They are a safe option as well. That is because banks and all other financial institutions are under the purview of the Reserve Bank of India.

Moreover, senior citizens can enjoy high FD interest rates. It can go up to 0.50% more than what it is for the general public.

Flexible Payout Options

Different interest payout options are available for FDs. Interest is credited – either monthly, quarterly, half-yearly, or yearly. You have the choice to pick any according to your convenience.

If one chooses to receive the interest from the fixed deposits monthly, one can put it to any use.

It becomes easier to pay for recurring expenses such as electricity bills, groceries, medicines, and even the monthly tuition fee of grandchildren. It brings a sense of relief and security in the retirement years.

Easy Withdrawal

FDs can be withdrawn in hours of crisis if there is a requirement for cash. Retired personnel prefers it as a source of finance. Other options such as a loan may get difficult to repay in the absence of a steady income.

Your FD Can Get You A Loan

You can also use the FD to apply for a loan. You gave to repay it before the maturation of the account. Banks lend you up to 90% of your FD amount.

You Can Invest A Minimum Amount

Fixed deposit investments do not require a huge amount of capital that may be difficult to find for a retired senior citizen. They are accessible to people from all walks of life. You can create an FD with a deposit of as low as Rs 25000.

Senior citizens Fixed Deposit can save taxes. You can claim a deduction of up to Rs 50000 under section 80C of the IT Act. So, why bear the burden of high taxes even in your old age?

Online Application

Application for FDs is becoming increasingly easier. Banks and NBFCs are coming up with user-friendly online modes of service. It helps senior citizens to track their investments and receive all the benefits from the comfort of their homes.

Final Word

PNB Housing has a good number of benefits to offer that are in sync with the dynamic needs of the investors in the ever-changing times, besides helping the investor’s money grow at a steady pace.

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