Make the Most of Higher Interest Rates on Senior Citizens FDs

Old age is a time when your regular sources of income start diminishing. At this time, the wealth you’ve accumulated throughout your life can help you live a financially secure, comfortable life. Fixed Deposits are regarded as one of the best investment vehicles for senior citizens because they are safe and can provide stable, uninterrupted income. Many banks offer the highest fixed deposit interest rates for senior citizens. But here’s how you can make the most of the highest rates on Senior Citizens FDs.

1. You can get better returns on investment

Almost all banks offer the highest rate of interest on FD for senior citizens. So, if the regular FD investor is getting an interest rate of 7% on their fixed deposits, senior citizens can get 7.50% or 7.75%, depending on the bank. If the deposit amount is high, this can result in better returns, especially on a completely safe investment.

2. Availability of various pay-out options

Apart from providing the best interest rates for senior citizens, banks also offer different pay-out options, which you can select per your requirements. For instance, if you prefer not to visit the bank every month, you can opt for quarterly or semi-annual pay-out on the Senior Citizen Fixed Deposit. If you already have other regular income sources and want to consider FDs as purely an investment vehicle, you can opt for the cumulative pay-out option. At high-interest rates, the cumulative investment option could result in a significantly higher corpus.

3. FDs enable you to meet with your recurring and non-recurring expenses

Be it a medical emergency or your children’s marriage; there is no saying when a senor citizen may need funds. An FD is an asset that comes in handy at such a time. Not only can you benefit from the highest FD rates for senior citizens, but you can also create FDs considering your life goals. As such, you can time and align your FDs with the varying tenures offered by the bank and encash them accordingly. For instance, if you need to pay for a medical emergency, you can encash the short-tenure FD, while you continue earning good returns on your long-term FDs.

4. Your high-interest FD can rescue you when you need a loan

When your sources of income begin to diminish, so does your ability to get a loan. But a smart, secure investment in a fixed deposit can come to your aid. Thus, while you can enjoy the best interest rates for senior citizens, your investment also enables you to secure a loan, without any hassles. What’s more, since you would be pledging your fixed deposit as collateral, the bank may charge you a significantly lower interest rate on the loan.

So, if you are looking for a safe and smart investment, that also offer a host of benefits along with the best FD rates for senior citizens, you should consider HDFC bank. Click here to apply for a Senior Citizen Fixed Deposit and getthe highest FD rates.

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances