Open a DBS Bank Account Now
Find out all about Senior Citizen Fixed Deposit and the benefits of opting for it.
Fixed deposit investments are generally made at a young age to save funds for future use. With secure investment options rare for senior citizens, the Senior Citizen Fixed Deposit scheme is a great investment option for people over 60 of age. These special schemes can help you earn a fixed income even after retirement, thus contributing to your financial security and independence. Read on to know more about Senior Citizen Fixed Deposit schemes.
Senior Citizen Fixed Deposits offer relatively higher interest rates on your investment. Banks typically give Senior Citizen FD holders an extra 0.50% interest rate, which contributes to more interest income, especially if the FD value is high. Compare the interest rates offered by various banks and choose one that provides the highest rate of interest on FD for senior citizens.
You can opt to receive the interests on your FD as monthly income. This is one of the reasons why Senior Citizen Fixed Deposit schemes are very popular. Since your income sources are limited in your retired age, opting for the monthly income option ensures you have a stable stream of funds coming into your account to manage your monthly expenses.
Fixed Deposits are primarily deemed as the most secure investment option. Investing in risky ventures can be unfavourable, especially as a senior citizen. The assured returns from a Senior Citizen Fixed Deposit make it a safe investment plan. The assurance of safety and a monthly income can help you accurately plan your post-retirement finances.
You can prematurely withdraw your FD at any given time, especially if you need money urgently. The bank will deposit the FD amount directly into your linked Savings Account. The bank may, however, penalise you for premature withdrawal.
If the income from your Fixed Deposit is equal to or less than INR 50,000 in a year, then you will not have to pay any taxes as per Section 80TTB of the Income Tax Act (1). You can even claim deductions for your income of up to INR 50,000 even if your income exceeds the tax exemption limit.
DBS Bank offers one of the highest rates of interest on FD for senior citizens – depending on the investment term. You can even open this FD online through the DBS Bank website.
If you prefer to save time and effort and open an FD account remotely, then download DBS Bank app right away!
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.
