Right Start Go
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo
No Result
View All Result
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo
No Result
View All Result
Right Start Go
No Result
View All Result
Home Finance

3 Reasons Why an FD is Ideal for Senior Citizens

Acker Palma by Acker Palma
October 7, 2021
in Finance
0 0
0
3 Reasons Why an FD is Ideal for Senior Citizens
0
SHARES
29
VIEWS
Share on FacebookShare on Twitter
0
SHARES
ShareTweet

The primary motive of senior citizens for investing is ensuring a regular stream of income for meeting their expenses after retirement. Since the risk-bearing capacity of senior citizens is quite low or minimal in the retirement years, people tend to look for investments that are highly safe and secure. Bank deposits meet both these criteria, making them an ideal investment option. Let us find out more about them.

Meaning of Fixed Deposits

As the name suggests, Fixed Deposits refer to deposits made for a fixed duration at an agreed rate of interest. Fixed deposits can be made with banks, several financial institutions, and even private companies. The interest on the investment is paid out to you monthly, quarterly, or yearly depending on your choice. You can choose a monthly pay-out tenure to meet your regular expenses but if you wish to save for meeting a bigger expense like medical treatment or prepayment of your home loan, go for the accumulation of the interest earned and its payout on maturity.

The deposited sum is returned to you after the end of the pre-decided tenure along with the accumulated interest earned by you on the deposited amount.

FDs offer:

  • Fixed Returns
  • Guaranteed Maturity Return irrespective of volatility in the financial markets
  • Multiple Options for Interest Payments Depending on Your Needs
  • Option to take a loan in times of emergencies (not in the case of tax-saving FDs)

In India, senior citizen FD rates are a bit higher than the rates on normal fixed deposits. Let us find out more about why fixed deposits are a suitable option for senior citizens looking for safe and steady returns.

Low-Risk Options

Safeguarding your wealth is an important consideration when you are no longer able to work. You are relying on your savings and wealth to continue living a comfortable life in your golden years. This is where bank deposits come as an attractive investment option. Their flexible tenures and pay-out options make them highly attractive.

Higher Interest Rates for Senior Citizens

Senior citizens prefer to invest in low-risk options like fixed deposits since they know that their money is safe and can be withdrawn at any point in time. In India, banks and financial institutions offer senior citizens an interest rate that is generally 0.50% higher than the rate on fixed deposits made by younger people. The interest rates on longer-duration fixed deposits are even higher. Many banks offer additional benefits like no penalty on early withdrawal of fixed deposit funds in the case of senior citizens.

Tax Benefits

Senior citizens can also claim income tax deduction up to Rs 1.5 lakh per annum by investing funds in a five-year tax saving FD scheme. As per the old tax regime, the invested amount is to be deducted from gross total income to arrive at the net taxable income. However, no benefit is available if the senior citizen opts for the new tax regime.

  • Tax-saving FDs come with a lock-in period of five years and no premature withdrawal or loans against them are allowed.
  • These FDs can be held in a single or Joint mode but in the case of the latter, the tax benefits are available only to the first holder.
  • The interest earned on the FD is taxable as per the Investor’s total income and applicable tax rules. The TDS or tax deduction at the source can be avoided by the submission of Form 15H. Senior citizens can also claim a deduction of Rs 50,000 on the interest earned from deposits as per Section 80TTB.
Previous Post

What can you do when routine strikes in your cam studio activity?

Next Post

How to make passive income from the stock market

Acker Palma

Acker Palma

Next Post
How to make passive income from the stock market

How to make passive income from the stock market

  • Trending
  • Comments
  • Latest
Creating the Best and Reliable Sheep Shed Design 

Creating the Best and Reliable Sheep Shed Design 

February 12, 2018
Five Fine Features of Sliding Gates for Houses

Five Fine Features of Sliding Gates for Houses

August 29, 2018
Five ways to take your weed

Five ways to take your weed

May 17, 2019
Best Information on Kids Dance Class

Best Information on Kids Dance Class

February 12, 2018

Kickstart Your Idea With Private Label Manufacturing

0

Important Tips When Renting A Vehicle

0

What Personal Vehicle Leasing Is

0

The Intricacies Of Invoice Finance

0

Kickstart Your Idea With Private Label Manufacturing

March 23, 2023
Where to Take Your Kids for Fun When You Live in Baltimore

Where to Take Your Kids for Fun When You Live in Baltimore

March 21, 2023
How to Update Your Contact Details in Your Demat Account?

How to Update Your Contact Details in Your Demat Account?

March 11, 2023
A Beginner’s Guide to Making the Perfect Voice Over Reel

A Beginner’s Guide to Making the Perfect Voice Over Reel

February 21, 2023

Recent Posts

  • Kickstart Your Idea With Private Label Manufacturing March 23, 2023
  • Where to Take Your Kids for Fun When You Live in Baltimore March 21, 2023
  • How to Update Your Contact Details in Your Demat Account? March 11, 2023
  • A Beginner’s Guide to Making the Perfect Voice Over Reel February 21, 2023
  • All You Need to Know About Bakersfield CA: Highlights, Restaurants, Landmarks & More February 2, 2023
  • The Ultimate Guide to Understanding Lending Options for Your Small Business January 13, 2023

2023

  • – March (3)
    • Kickstart Your Idea With Private Label Manufacturing
    • Where to Take Your Kids for Fun When You Live in Baltimore
    • How to Update Your Contact Details in Your Demat Account?
  • + February (2)
  • + January (6)

2022

  • + December (3)
  • + November (8)
  • + October (3)
  • + September (1)
  • + August (3)
  • + July (3)
  • + June (1)
  • + May (7)
  • + April (3)
  • + March (2)
  • + February (5)
  • + January (6)

2021

  • + December (3)
  • + November (4)
  • + October (12)
  • + September (10)
  • + August (5)
  • + July (4)
  • + June (5)
  • + May (4)
  • + April (6)
  • + March (7)
  • + February (9)

2020

  • + December (1)
  • + April (1)
  • + March (2)
  • + February (1)
  • + January (1)

2019

  • + December (2)
  • + November (2)
  • + October (1)
  • + September (4)
  • + August (4)
  • + July (2)
  • + June (6)
  • + May (4)
  • + April (4)
  • + March (10)
  • + February (7)
  • + January (11)

2018

  • + December (15)
  • + November (26)
  • + October (20)
  • + September (16)
  • + August (29)
  • + July (31)
  • + June (24)
  • + May (19)
  • + April (13)
  • + March (16)
  • + February (24)
  • + January (37)

2017

  • + December (2)
  • + October (1)
  • + September (6)
  • + August (8)
  • + July (7)
  • + June (7)
  • + May (3)
  • + April (3)
  • + March (2)
  • + February (4)
  • + January (3)

2016

  • + December (5)
  • + November (3)
  • + October (1)
  • + September (8)
  • + August (2)
  • + July (5)
  • + June (4)
  • + May (6)
  • + April (1)
  • Write To Us

© 2020 Right Start Go- All Rights Reserved.

No Result
View All Result
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo

© 2020 Right Start Go- All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In