These banks are offering up to 7.5% interest on FDs for senior citizens
Senior citizens can time and align their FDs with the varying tenures offered by the bank and encash them accordingly.
To live a comfortable life post retirement, it is important to invest in schemes that provide higher returns and negligible risk. Fixed deposits are considered to be one of the best investment options for senior citizens. They are safe and can provide stable, income in old age.
Many banks offer the high fixed deposit interest rates for senior citizens.
Better returns on investment
Most of the banks offer the highest rate of interest on FD for senior citizens. So, if the regular FD investor is getting 7% interest, senior citizens will be offered 7.50% or 7.75%, which varies with the bank.
Creating FDs as per investment objective
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.
Before opening a senior citizen fixed deposit in a bank, it is important to compare the latest fixed deposit rates among leading banks in the country.
Here are the latest fixed deposit rates:
Term deposit rates for senior citizens offered by banks
(These interest rates are for domestic term deposits of less than Rs 2 crore for Indian senior citizens)