Fixed deposits make for an excellent investment for seniors. It is a safe and low-risk tool with easy liquidation, assured returns and flexible tenure choice. Bank FD interest rates are not affected by market fluctuations. This helps the wealth accumulate at a steady pace. The top Indian bank offers 0.5% higher interest for senior citizens. There are no penalties for early withdrawal as well. You can expect excellent FD-related services that are offered in line with the present RBI regulations. For example, door-step banking for citizens above 70.
There are plenty of other reasons why FD is a smart choice for seniors. If you already know what is fixed a deposit, here’s a closer look at how it benefits elders at home.
Ø Hassle-Free Retirement Planning
The main advantage is that an FD is safe and secure. It does not involve the risk of losing money due to market ups and downs. You can opt for monthly and quarterly FD interest payout options that can be used to fulfil basic needs during your golden period. Use the money for personal expenses, household needs or to pay for your grandchild’s education. Let the retirement corpus grow by keeping the FD untouched for the initial years. A sufficient maturity amount will help live an independent life later on.
Ø Minimum Deposit
The best bank will require as less as ₹10,000 to open the FD account. Seniors can instantly enjoy benefits like free premature withdrawal, higher interest rates and personalized services. It helps grow the earnings and save enough for rainy days. The funds can easily be used for short-term and long-term needs. For example, buying a home, getting your child married or paying hefty medical bills can be a breeze with an FD. Opting for renewal at maturity can further grow your income to a great extent.
Ø Simple Investment Method
Applying for an FD requires simple eligibility criteria. The senior must be an Indian citizen or resident of India. Further, you need to furnish a few following documents:
- Passport-size photograph
- Aadhaar Card
- Voter’s Identity Card (Election Card)
- Permanent and valid driving license
- Job card issued by NREGA duly signed by an officer of the State government
- PAN Card/Form 60 for deposits above ₹50,000
- Letter issued by the National Population Register containing name and address.
Ø Emergency Withdrawals
Hospitalizations for surgeries, tests and treatments might require a lump sum amount. You can also need money for an immediate home repair or short-notice travel. Having a handy FD account lets you draw the required cash. It is an efficient source of finance to ensure timely medical intervention, ticket booking or funding renovation costs. The added advantage of no charges makes it all the more affordable and convenient amid a crisis and otherwise. Use an FD calculator to determine the maturity date, maturity value and aggregate interest amount.
Bank FD interest rates are a major factor that plays a key role in growing your fund. So, pick the one that best suits your needs. Read the fine print carefully before investing.