Everything You Need To Know About Investing in Senior Citizen Fixed Deposits

Life after 60 is the golden period in an individual’s life because there is enough time to follow your passion and do things that he/she has always wanted to do.

It is important for every citizen to lead a financially secure life after retirement. There are several ways to save and invest your hard-earned funds, and one of the most recommended and highly-used investment options is investing in a Fixed Deposit.

When you are a senior citizen, investing in a fixed deposit account becomes even more beneficial, as you get the benefit of investing in different types of fixed deposits. They offer a higher rate of interest and keep your money safe so that you can keep it for emergency expenses.

Let us look at how senior citizens can benefit by investing in senior citizen fixed deposits.

Why Should a Senior Citizen Invest in a Fixed Deposit?

One of the primary reasons to invest in a fixed deposit after turning 60 is to keep your money safe and earn higher interest on your investment. Other reasons for opening a fixed deposit after your retirement are to save money on taxes and build a source of secured funding.

As a senior citizen:

• You can use the interest earned from fixed deposits to pay for everyday expenses.
• Your money is safe with the bank and is saved from eternal factors like recession, inflation, etc.
• Your fixed deposits can earn you stable returns.

Benefits of investing in a Fixed Deposit for Senior Citizens 

Here are some advantages you get when you invest in an FD if you are a senior citizen:

• You get to enjoy longer FD tenures, which can range from a week to 10 years
• You can use the nomination option
• If you are a super senior citizen, i.e., above the age of 80, you get even higher rates of interest on FDs
• You have the benefit of earning high senior citizen fixed deposit rates of interest on these investments
• Use your FD like a tax saver fixed deposit, which normally comes with a 5-year lock-in period

Top 6 Banks that Offer the Highest Fixed Deposit Interest Rates for Senior Citizens

The interest rate for senior citizen FDs can vary from bank to bank. Let us look at the best senior citizen fixed deposit rates of interest offered by banks:

1. RBL Bank – 7.80% *p.a. plus 0.50% p.a. for Senior citizens in the age group of 60 years to less than 80 years
2. Ujjivan Small Finance Bank – 6.75%
3. India Post Office – 6.70%
4. Jana Small Finance Bank – 6.50%
5. Axis Bank – 6.25%
6. Equitas Small Finance Bank – 6.25%

The Process to invest in a Senior Citizen FD

Before you invest in a Senior Citizen FD, you must check your eligibility and documentation. Make sure you have the document that proves your age is 60 years or more.

You can start with a Senior Citizen FD online and offline. Just follow these steps:

• Visit the official website of the bank, view different types of fixed deposits available, and fill out the online application form for senior citizen fixed deposits.
• Choose how you would like to receive the interest amount – monthly, quarterly, or yearly.
• Choose the tenure and deposit amount, and mention your details.
• Make the payment.

Conclusion

Doing your research and homework before you invest in a Senior Citizen FD is advisable. It can be a different experience but a beneficial one. Many fear the procedure to be extremely complex, and some have no clue about the benefits of opening a senior citizen FD.

So, it is recommended that you learn everything about the procedure and compare the interest rates of different banks for senior citizen FD accounts before you make the decision.

This post has covered almost everything you need to know about opening an FD account with a bank. All you need to do is to open a digital FD account from the comfort of your home and enjoy your retirement period to the fullest!