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Best FD Rates in India for Senior Citizens
The total amount of savings deposit with commercial financial institutions stood at Rs.40.31 lakh crore as of September 2019. Best FD Rates in India. Of this significant capital, a major section is contributed by fixed deposits.
As a secure investment option with guaranteed returns, these are also considered to be one of the ideal schemes after retirement. Consequently, it is vital that any investor nearing retirement age is aware of the senior citizen FD rates.
While financial institutions always offer high rates of interest on fixed deposits, senior citizens receive the added benefit of a considerably higher rate. Usually, the minimum amount that can be invested in an FD begins at Rs.25,000 and can go up to Rs.5 crore.
Furthermore, investors must choose between different types of interest rates on their fixed deposits as well as when they want their interest to be paid. Interest can have cumulative rates as well as non-cumulative rates. In case of the latter, investors have the option to choose from 4 different frequencies of interest payment. They can choose monthly, quarterly, half-yearly or annual interest payments.
Additionally, the rates of interest offered by financial institutions like Bajaj Finance also depend on maturity tenor of these fixed deposit accounts.
The cumulative senior citizen FD rates for 2020 on different tenors are listed beneath –
- For any duration of investment in FD that ranges between 12 and 23 months, the rate of interest is 7.85% per annum.
- In case the duration is between 24 and 35 months, the interest rate goes up to 8.15%.
- Under the last slab of investment tenor, investors can choose the duration in between 36 and 60 months. The interest offered for such lock-in period is 8.35%.
As a risk-free investment option that senior citizens can benefit from, it is imperative that investors also check the non-cumulative rates of interest, which are offered by different financial institutions. These different rates can be divided on the basis of different tenor length.
For tenors ranging between 12 and 23 months, senior citizen FD rates for 2020 are as follows –
- For monthly interest payment, the rates are 7.58%.
- In case of quarterly payment, the interest rate is 7.63%.
- For investors opting for half-yearly payment, the rate stands at 7.70%.
- For yearly payment of interest, this rate goes up to 7.85%.
The For senior citizens opting for a tenor that ranges between 24 and 35 months, the underneath rates of interest are applicable in FD investment.
- Monthly payment of interest fetches a rate of 7.86%.
- For investors choosing quarterly payment, 7.91% interest is applicable.
- In cases of half-yearly payment, the interest rate reaches 7.99%.
- The highest rate in this tenor is that of 8.15%, which is offered only for yearly interest payments.
The senior citizen FD rates for the final maturity tenor that can be between 36 and 60 months are listed below –
- A rate of 8.05% is offered in case an investor chooses monthly interest payment.
- For interest payments on a quarterly basis, the rate goes up to 8.10%.
- When the interest is payable on a half-yearly basis, the interest rate goes further up to 8.18%.
- The highest rate of interest offered to senior citizens is that of 8.35%, which is only offered on yearly interest payments.
With financial institutions offering high rates of interest on investments in FD to senior citizens, it is beneficial to invest the EPF corpus in the same. Any retiree considering such investments can use their provident fund number to check their EPF amount and consequently also calculate the revenue they can generate with this investment.
Concluson
While there are quite a few other top investment schemes for senior citizens to ensure financial stability, FDs are the most secure option with guaranteed returns. Nevertheless, senior citizens should evaluate and compare all the investment options before finalising on one.
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