Senior citizens’ fixed deposits can be the best term deposit for people in their advanced age. The depositor is entitled to the principal amount and takes home the interest accumulated over the fixed deposit’s term. Fixed deposits keep senior care Brooklyn citizens in a happy frame of mind and give them a sense of financial security. Some of the reasons why senior citizens should opt for a fixed deposit are.
Reasons Why Fixed Deposits Best Options For Senior Citizens:
- The senior citizen’s fixed deposit scheme carries minimal risk. Even if senior citizens have made some serious investments through life for their future well-being, they will still have a safe alternative. The senior citizen’s Fixed Deposit fits the bill like no other investment alternative. For their retirement years, there cannot be a more strategically chosen savings option for senior citizens. There is the guarantee of an assured, fixed, and regular income based on senior citizens’ FD rates—a cushion against unexpected emergencies/expenses.
- The senior citizen can opt for an FD tenure ranging from 7 days to 10 years.
- The account can be terminated/closed at any point by the senior citizen; nobody official or private person can object to the premature closure. The only exception is when it is a ‘tax-saver FD,’ which may attract a penalty if sought to be closed prematurely.
- Senior citizen FD amount can be even Rs 1 crore and more. Senior citizen FD rates are also higher than those of regular fixed deposits. Compound interest accumulates once every quarter. The interest payment is made at the maturity of the FD.
- Senior citizens can add the name of a nominee to the senior citizen’s fixed deposit scheme account.
- Senior citizens’ FD is a safe and low-risk investment. Better than mutual funds and shares. Senior citizen FD interest rates are in the range of 3.25% to 6% per annum. Section 80C of the Income Tax Act applies and, therefore, a tax rebate is applicable.
- Best of all, there is a regular interest payout! The senior citizen’s fixed deposit scheme is a continuous and lifelong fountain of stable and steady income, whether the sun shines or not.
- In the normal course, to get a regular income requires continuous investment even after you have retired. With FD, though, the principal and interest rates based on senior citizen FD rates keep growing throughout the FD’s tenure.
Opening a senior citizen’s fixed deposit scheme will be a good decision. The senior citizen is then entitled to all the benefits of the exclusive senior citizen’s FD. The FD with more than five years’ tenure is the best. Senior citizen’s FD takes care of the tax worry also—tax is deducted at the source! All that one has to be done is submit Form 15G or Form 15H to the bank.
So, if you are 60, or 60-plus, open a senior citizen’s FD account under the senior citizen’s fixed deposit scheme. You can either visit your bank or do it online. You will need certain documents, of course—ID proof, address proof, Aadhaar card, passport-size photographs, and your PAN card. Of course, terms and conditions will apply. But that is standard!