How can Senior Citizens Make Most of Fixed Deposits?

How can senior citizens make most of fixed deposits?

Fixed deposit for senior citizens or anyone is a profitable investment scheme that gives guaranteed returns.

If you compare the fixed deposits with other investments such as stocks, mutual funds, and bonds or more, you will notice that their returns are impacted by market fluctuations and performances.

On the other hand, the returns of the senior citizen FD or any other FD is sure-shot and is not impacted by market conditions as such. 

Before investing in FDs, you may need to look at some of the factors for consideration:

Return size

Although a senior citizen fixed deposit comes loaded with the benefit of a sure-shot return, the bad news is that it’s still much lower compared to other investments of short tenors.


If you get an immediate need for money, a savings account is a good option because it does not account you for any penalty. Yes, the bad thing with the withdrawal of a senior citizen FD is that you can withdraw the FD amount before its maturity but have to pay the penalty.

Also, the interest promised on it will be much lower when you close the FD prematurely. Some lenders won’t let you withdraw your FD amount before a stipulated time has passed such as 1 year.
You can however, make the most of a senior citizen fixed deposits too. Check out some of the best benefits below:

Safe investment

As discussed earlier, unlike some high-risk prone investment options such as debt funds, mutual funds, the senior citizens fixed deposit interest rates are not regulated by fluctuating market rates.

No risk factors

Reserve Bank of India (RBI) has made it mandatory for investors to keep up insurance on FD investments. As a result, each investor gets insurance worth Rs.1 lakh on the FD account which has the inclusions of interest accrued and the principal.

Loan and credit card

A senior citizen can simply avail a loan against their FD instead of closing their FDs prematurely and suffer a penalty. Yes, you are entitled to get a personal loan of up to 90% of your total value of the FD. What’s more, the interest charged on these loans is much lower as compared to conventional personal loan interest rates.

If you are a senior citizen and looking to invest in an investment scheme where you can earn more returns and also with a guarantee, go for a senior citizen fixed deposit scheme. You can also calculate the maturity value of deposit amount using FD calculator.  
Leading online lenders are offering senior citizens with the highest interest return of 8.20%. You can apply online today and begin the journey towards a befitting investment.  
How can Senior Citizens Make Most of Fixed Deposits? How can Senior Citizens Make Most of Fixed Deposits? Reviewed by ravish kumar on March 10, 2018 Rating: 5

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