Investing in Fixed Deposits for Senior Citizens

Fixed deposit is a financial contrivance, which is provided by the banks or NBFC’s. Until the given maturity date, fixed deposit furnishes the investors with a higher rate of interest when compared to a regular account of savings. When it comes to retirement, the first thought, which struck the mind, is managing the regular source of income.

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Moreover, it is always good to manage your finances well in advance so that you need not spend on others or compromise on your standard of living. Moreover, if you are senior citizen which means 60 and above years of age and you are the verge of retirement or will retire in the coming year’s then financial planning for you has to be your priority.

The key objective for a senior citizen during an investment needs to be earning guaranteed returns with minimum risk. It is only then a senior citizen can safeguard the wealth they have accumulated throughout their career. Undoubtedly, there are many investment options available in the market for the senior citizen but amongst all the popular one remains a fixed deposit.

To safeguard one’s wealth the senior citizens’ duly consider a fixed deposit as the safest option as it involves low risk.

Comparison Between
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
7.5% (TAX-FREE)
Returns After Tax
7.5%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
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Still Better than FD’s and Debt Mutual Fund
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
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Advantages of Fixed Deposits for Senior Citizens

A fixed deposit certainly offers good returns on the investment. The following are the advantages of investing in a fixed deposit for senior citizens, which are:

  • A senior citizen prefers less paperwork and documentation. Therefore, the whole process of opening and investing in a fixed deposit account have been simple and instant ensuring no hassles leading to ease of transaction for senior citizens.

  • When a senior citizen invests in a fixed deposit, they rest assured of the returns they will receive. Unlikely in other market-linked products one is unaware regarding the amount of return whereas in terms of a fixed deposit the senior citizen exactly knows the returns they will be earning on the respective investment.

  • When it comes to the rate of interest, a fixed deposit earns interest at a pre-determined rate. While investing in a fixed deposit it gives the investor the flexibility to opt the method of interest pay-out. Besides, these payouts can be received on a monthly, quarterly, Half-yearly or on the date of maturity depending on what you choose. The investor also has the flexibility to choose the option for interest pay-out that is either by a cheque or ECS. According to the financial needs ad plans the investors may claim interest.

  • One of the key advantages offered by banks and other institutions is the higher rate of interest for investments done by senior citizens as compared to regular investors. Moreover, a fixed deposit is a term and amount specific. If the tenure has been long, the depositor will get an increased return even if the interest is not high.

  • The senior citizen may avail the tax benefit* wherein no TDS will be charged if the senior citizen does not earn Rs. 50,000 as interest earned from a fixed deposit. However, if the senior citizen earns more than Rs.50,000 per year then the bank will charge 10% TDS on the entire interest and if the investor fails to provide with the PAN details then 20% for the same will be charged.

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Opening a Fixed Deposit Account for Senior Citizen

The Senior Citizens Savings Scheme (SCSS) includes the deposits made by the senior citizens. Concerning opening, a senior resident fixed store account in a mail station the contributor needs to visit the near to post office and in like way fill the fixed store structure warily with every exact datum to open an account. The aggregate they wish to contribute can be kept through either a check or request draft.

Besides, post office an FD account can also be opened up in banks as well. Fill the FD account opening form online and submit the form accordingly. The amount of deposit will be deducted from the savings bank the basis the applicant has opted. The senior citizen has the option to chose when they wish to receive the interest every month, either quarterly or annually.

Eligibility Criteria for Senior Citizen Fixed Deposit Account

Anyone who is an inhabitant and NRI senior resident over 60 years old is qualified enough for a fixed deposit scheme offered by the banks and post offices. On the off chance, that someone falls under the class of NRI senior resident, at that point that individual may open a fixed store under the non-resident external and non-resident ordinary classification separately.

FD interest rates India have fallen consistently over the last 12 years.
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Documents Required for Senior Citizen Fixed Deposit Scheme

In case of any investor is interested to invest in senior citizen fixed deposit scheme the following documents will be required:

  • Recent passport-sized photographs.

  • Copy of age proof substantiating that the age of the investor is more than 60 years. For example, PAN card, Aadhar card, etc.

  • The fixed deposit form duly filled.

  • Copy of investor’s address proof, for example, address on passport or recent electricity bill, etc.

  • Copy of signature proof, for example, PAN card, driving license, etc.

Choosing the Best Senior Citizen Fixed Deposit Scheme

Here are some quick tips that will help you to choose the best fixed deposit scheme which are:

  • It is good to assess and plan your financial requirements. It is good to split the investment in the short term and long term if as an investor you can foresee an expense in the coming time.

  • To receive the best pay-outs it is highly recommendable to analyze the financial needs.

  • The rate of interest is not always the same. If the rate of interest is likely to rise in the future then investing for a shorter duration will turn out to be a good investment decision. Likewise, if there is a drop in the interest rate then it is better to invest for a longer duration and at a high rate of interest.

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Best-Fixed Deposit Rates for Senior Citizen in India 2019-20

It is to be noted that interest rates are subject to change and can be revised by the bank without any prior notice. In the below grid are the best fixed deposit rates for senior citizens offered by banks in India:

Fixed Deposit with Banks Less than a year In between 01 to 05 years Above 05 years
SBI FD Rates 5.00% to 6.50% 6.75% to 7.20% 6.75%
ICICI Bank FD Rates 4.50% to 7.00% 7.20% to 7.60% 7.50%
HDFC Bank FD Rates 4.00% to 6.85% 7.10% to 7.50% 7.40%
HSBC Bank Rates 3.50% to 6.00%  5.50% to 6.50%  
Canara Bank FD Rates 5.50% to 6.50% 6.50% to 7.00% 6.75%

Allahabad Bank FD Interest Rates

Allahabad Bank FD Interest Rates

Andhra Bank FD Interest Rates

Andhra Bank FD Interest Rates

Assam Gramin Vikash Bank FD Interest Rates

Assam Gramin Vikash Bank FD Interest Rates

AU Small Finance Bank FD Interest Rates

AU Small Finance Bank FD Interest Rates

Axis Bank FD Rates

Axis Bank FD Rates

Bajaj Finance FD Interest Rates

Bajaj Finance FD Interest Rates

Bandhan Bank FD Interest Rates

Bandhan Bank FD Interest Rates

Bangiya Gramin Vikash Bank FD Interest Rates

Bangiya Gramin Vikash Bank FD Interest Rates

Bank of Baroda FD Interest Rates

Bank of Baroda FD Interest Rates

Bank of Ceylon FD Interest Rates

Bank of Ceylon FD Interest Rates

Bank of India FD Interest Rates

Bank of India FD Interest Rates

Bank of Maharashtra FD Interest Rates

Bank of Maharashtra FD Interest Rates

Baroda Gujarat Gramin Bank FD Interest Rates

Baroda Gujarat Gramin Bank FD Interest Rates

Canara Bank FD Interest Rates

Canara Bank FD Interest Rates

Capital Small Finance Bank FD Interest Rates

Capital Small Finance Bank FD Interest Rates

Central Bank of India FD Interest Rates

Central Bank of India FD Interest Rates

Citibank FD Interest Rates

Citibank FD Interest Rates

City Union Bank FD Interest Rates

City Union Bank FD Interest Rates

Corporation Bank FD Interest Rates

Corporation Bank FD Interest Rates

Dakshin Bihar Gramin Bank FD Interest Rates

Dakshin Bihar Gramin Bank FD Interest Rates

DBS Bank FD Interest Rates

DBS Bank FD Interest Rates

Dena Bank FD Interest Rates

Dena Bank FD Interest Rates

Dhanlaxmi Bank FD Interest Rates

Dhanlaxmi Bank FD Interest Rates

Equitas Small Finance Bank FD Interest Rates

Equitas Small Finance Bank FD Interest Rates

ESAF Small Finance Bank FD Interest Rates

ESAF Small Finance Bank FD Interest Rates

HDFC Bank FD Interest Rates

HDFC Bank FD Interest Rates

HSBC FD Interest Rates

HSBC FD Interest Rates

ICICI Bank FD Interest Rates

ICICI Bank FD Interest Rates

IDBI Bank FD Interest Rates

IDBI Bank FD Interest Rates

IDFC First Bank FD Interest Rates

IDFC First Bank FD Interest Rates

Indian Bank FD Interest Rates

Indian Bank FD Interest Rates

Indian Overseas Bank FD Interest Rates

Indian Overseas Bank FD Interest Rates

IndusInd Bank FD Interest Rates

IndusInd Bank FD Interest Rates

Jana Small Finance Bank FD Interest Rates

Jana Small Finance Bank FD Interest Rates

Karnataka Bank FD Interest Rates

Karnataka Bank FD Interest Rates

Kerala Gramin Bank FD Interest Rates

Kerala Gramin Bank FD Interest Rates

Kotak Mahindra Bank FD Interest Rates

Kotak Mahindra Bank FD Interest Rates

Lakshmi Vilas Bank FD Interest Rates

Lakshmi Vilas Bank FD Interest Rates

Muthoot Capital

Muthoot Capital

Nainital Bank FD Interest Rates

Nainital Bank FD Interest Rates

Odisha Gramya Bank FD Interest Rates

Odisha Gramya Bank FD Interest Rates

Paschim Banga Gramin Bank FD Interest Rates

Paschim Banga Gramin Bank FD Interest Rates

Paytm Payments Bank FD Interest Rates

Paytm Payments Bank FD Interest Rates

PNB FD Interest Rates

PNB FD Interest Rates

Prathama UP Gramin Bank FD Interest Rates

Prathama UP Gramin Bank FD Interest Rates

RBL Bank FD Rates

RBL Bank FD Rates

Saurashtra Gramin Bank FD Interest Rates

Saurashtra Gramin Bank FD Interest Rates

SBI FD Interest Rates

SBI FD Interest Rates

Shriram Finance FD Interest Rates

Shriram Finance FD Interest Rates

State Bank of Hyderabad FD Interest Rates

State Bank of Hyderabad FD Interest Rates

State Bank of Mysore FD Interest Rates

State Bank of Mysore FD Interest Rates

State Bank of Travancore FD Interest Rates

State Bank of Travancore FD Interest Rates

Syndicate Bank FD Interest Rates

Syndicate Bank FD Interest Rates

Tamil Nadu Grama Bank FD Interest Rates

Tamil Nadu Grama Bank FD Interest Rates

Telangana Grameena Bank FD Interest Rates

Telangana Grameena Bank FD Interest Rates

Tripura Gramin Bank FD Interest Rates

Tripura Gramin Bank FD Interest Rates

UCO Bank FD Interest Rates

UCO Bank FD Interest Rates

Ujjivan Small Finance Bank FD Interest Rates

Ujjivan Small Finance Bank FD Interest Rates

Union Bank of India FD Interest Rates

Union Bank of India FD Interest Rates

Uttar Bihar Gramin Bank FD Interest Rates

Uttar Bihar Gramin Bank FD Interest Rates

Uttarakhand Gramin Bank FD Interest Rates

Uttarakhand Gramin Bank FD Interest Rates

Vijaya Bank FD Interest Rates

Vijaya Bank FD Interest Rates

Yes Bank FD Interest Rates

Yes Bank FD Interest Rates

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