Are you an Indian above 60 years of age? Great! Citizens above the age of 60 years are known as senior citizens in India. You can avail of all the benefits which a senior citizen enjoys in our country. The most crucial advantage a senior citizen can avail is higher interest rates on term deposits. Financial bodies like banks and NBFCs offer this advantage. If you choose to invest your funds in these financial bodies as fixed deposits, you can expect a higher interest on your FD.
Fixed Deposit for Senior Citizens
The Senior Citizen Fixed Deposits (FD) are term deposit plans which are customized for you to give you maximum returns on your investment. FDs have become an attractive investment option for senior citizens because of the safety of the invested amount and various other benefits offered by the banks and NBFCs. A variety of senior citizen fixed deposit schemes with a wide range of features, like overdraft facility, interest payout options, flexible tenures, and many more are available to choose. Senior citizen’s FD has higher interest rates as compared to other customers. It is generally 0.50% higher than the interest rate offered to other customers. Senior citizens can also have a choice in interest payouts patterns, like monthly (non-cumulative option), to meet their daily expenses or cumulative or annual at the time of maturity with the principal amount.
FD Interest rates for senior citizens
It changes from bank to bank and from time to time. Currently, it ranges from 5% to 8.7%. Nationalized and scheduled banks generally offer less interest as compared to NBFCs. The return on your investment also depends upon the tenure for which you invest your amount. Longer the deposit stays with the bank, higher will be the interest rate applicable to it. PNB housing finance is currently offering the highest FD interest rate to senior citizens, which is 8.7%. PNB housing finance has a very lucrative payback on your investment in FD with different tenures.
Latest fixed Deposit interest rates
Bank FD interest rates depend upon the changes in the monetary policy of RBI, such as repo rate, base rate, the internal liquidity position of banks, national economic conditions, and the level of credit demand. FD interest rates of different Indian banks vary by deposit tenure, deposit amount, and the type investor. As per the Revision in Interest Rates on Retail Domestic term deposits (Below Rs. 2 crores) by the RBI effective from 10.11.2019, the lowest interest rate applicable is 5% for short term deposits of 7 days to 45 days. An interest rate of 6.75% to 7.75% applies to deposits with a tenure of more than one year. PNB Housing Finance is currently offering an interest rate of 8.05% to 8.70% on different FDs depending on the investment tenure, the sum deposited, interest pay-off mode, and the age of the depositor. This is currently the highest in the market. A senior citizen can now expect 7.25 to 8.7% interest on his FD.
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