Senior Citizen FD rates: Here's what HDFC Bank, Axis Bank and YES Bank are offering

For a comfortable life post-retirement, it is important to invest in schemes that provide higher returns and come with negligible risks. One of the best investment options that is considered for senior citizens are fixed deposits. They are safe and can provide stable income in old age. Senior citizens or those who have retired, need regular income to meet their household expenses. Fixed income instruments are popular mostly among retirees and senior citizens. During the retirement phase, the regular inflow of income either stops or falls.

Fixed income products provide interest income which is not only fixed during the entire term but also assured to a large extent.

Better returns

Most of the banks offer the best interest rates for senior citizens. So, if the regular FD investor is getting 7% interest, senior citizens generally get 7.5% or 7.75%, which varies with the bank.

Senior citizens can time and align their FDs with the varying tenures offered by the bank and encash them accordingly. Be it a medical emergency, child’s marriage, a vacation they can encash the short-tenure FD at the same time keep investing in long-term FDs.

Availability of various pay-out options

Senior citizens can also opt for quarterly or semi-annual pay-out on the senior citizen FD, and avoid visiting the bank every month. In case if they have other regular income sources, then they can opt for the cumulative pay-out option. At high interest rates, the cumulative investment option could result in a significantly higher corpus.

Here are the latest fixed deposit rates