Fixed Deposit for Senior Citizens : The US Federal Reserve has recently cut interest rates. Now it is believed that the Reserve Bank of India (RBI) can also cut its rates. In such a situation, if Senior Citizens (Fixed Deposit for Seniors Citizens) want to make a fixed deposit in the coming time, then this is the best time.
Higher returns are guaranteed
Designed for senior citizens, fixed deposits, which generally offer higher returns, make them a safe income option for retired people. In such a situation, it is important to stay updated about the interest rates before investing.
Compared to normal FD, 0.50 percent more interest is available in FD designed for senior citizens, hence the expectation of return in the long term is also higher. Not only the interest rate, the period for which the FD is to be kept before investing is also an important factor. Generally, fixed deposits made for longer periods get higher interest.
Take care of taxes also
One thing to keep in mind is that there is tax on FD and it is a matter of relief that senior citizens also get huge discount in it. In such a situation, before making FD, it is important to understand the law related to it and how much return to get after tax.
Liquidity is the main factor
Liquidity is an important factor in fixed deposits for adult citizens as it provides easy access to funds for situations like medical emergencies. In such a situation, it is important to have a balance between returns and liquidity before investing. Overall, fixed deposits can prove beneficial for senior citizens, provided there is a proper understanding of the duration, interest rate and taxes applicable on it.
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