Friday, June 21, 2024

Fixed Deposits for Senior Citizens: Special Features and Benefits

As people enter their golden years, valuing financial stability becomes a natural priority. It is a time to find an ideal balance between earning profits and ensuring the security of your funds. Fixed deposit offer this balance and protect your savings with consistent returns unaffected by any market fluctuations.

Recognizing the specific financial goals and requirements of the elderly, many banks have introduced Senior Citizen Fixed Deposits. Let’s take a closer look at the important features and benefits that bank deposits for senior citizens bring.

1. Higher interest rates

Senior citizens benefit from higher interest rates on their fixed deposits compared to the standard rates offered to younger depositors. This extra interest rate boost, typically between 0.25% and 0.75%, helps increase their earnings significantly.

When you choose INDIE Fixed Deposits by IndusInd Bank, you earn an impressive interest rate of up to 7.75 % p.a. on normal Fixed Deposits and up to 8.25% p.a. on Senior Citizen Deposits. Moreover, from auto-sweep FDs to tax-saving FDs, you can book different types of FD with a 100% digital process. You can even use INDIE as an online FD app and manage your investments digitally from anywhere, anytime.

Book your INDIE Fixed Deposit today! Give your savings the growth they deserve with the best-in-class interest rates.

2. Save additional taxes

Senior citizens benefit from a higher tax exemption threshold on interest income compared to individuals under 60 years. They are eligible for a deduction of up to ₹50,000 in a financial year, under section 80TTB of the Income-tax Act, 1961. TDS is deducted only if the annual interest exceeds this limit, but you can submit Form 15H to avoid it if your total income is below the taxable limit.

Note that the TDS deduction applies to the interest earned on tax-saving fixed deposits as well.

3. Enjoy regular income through flexible payouts

While FDs typically have a lock-in period, many banks offer senior citizens the option for multiple payouts. When booking an FD, simply select the payout frequency (monthly, quarterly, half-yearly, or yearly) that best suits your financial planning.

This feature is particularly beneficial in times of urgent cash needs. A portion of your fixed deposit is credited to your bank account at regular intervals while the remaining amount continues to accrue interest.

4. Link fixed deposits to savings accounts

Most banks allow you to link your FD to your savings account, a facility also offered by INDIE Fixed Deposit. This setup allows direct payments from your FD when your account balance runs low.

For senior citizens, this feature is a boon as it ensures uninterrupted payment for utilities, medical bills, or any regular expenses without the need to manually transfer funds. This integration between accounts simplifies money management for senior citizens and makes their financial lives more comfortable and worry-free.

5. Additional perks and services of bank deposits for seniors

Senior citizens also enjoy various additional perks and services on their fixed deposit accounts that boost their banking experience and provide extra value. These may include:

● Open an FD online from anywhere, any location, through digital banking apps
● Preferential treatment at branches of your bank
● Priority customer service 24/7
● Dedicated helpline numbers
● Access to health insurance benefits
● The option to nominate a beneficiary to secure financial legacy
● Discounts on medical services with partner hospitals and clinics
● Special offers on lockers, including discounts or priority access

These benefits offer comfort, convenience, and financial security to seniors.

Fixed deposit accounts for senior citizens | Key takeaways

Bank deposits for senior citizens are a useful financial tool designed with the unique needs of senior citizens in mind.

With features like higher interest rates, customizable tenures, and multiple payout options, fixed deposits offer a secure investment option for seniors. The additional perks, such as healthcare tie-ups, priority banking, and the ability to link FDs to savings accounts, further enhance your overall banking experience.

Book an online fixed deposit today and enjoy a financial solution that provides you with the returns and convenience you deserve in your golden years.

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