Worried About Money After Retirement? Check Fixed Deposit For Senior Citizens

Worried About Money After Retirement? Check Fixed Deposit For Senior Citizens
Written by raphiyakhatoon

As you cross the golden age of 60, your lifestyle undergoes a massive change. Only a robust and functional investment strategy can help you fulfil whatever dreams you have set for yourself and your family.

When it comes to creating a functional investment plan, fixed deposit schemes occupy the most prominent place. Fixed deposit schemes come in various shapes and sizes. The more you explore the different options, the better the retirement plan you will create.  

Scroll down to explore the best facets of an FD and pick the tips you need to get the highest fixed deposit interest rates.

The Features of Senior Citizen Fixed Deposit

A fixed deposit scheme for senior citizens comes loaded with additional benefits. Broadly, you can expect the following features from the best senior citizen fixed deposit scheme.

High Rates of Interest

Senior citizen fixed deposits’ interest rates are 0.25% to 0.50% higher than the prevailing rates for ordinary investors.  For instance, while ordinary investors get 6.70% interest on a 10-years’ cumulative or non-cumulative fixed deposit, the interest rate increases to 6.95% for senior citizens.. Hence, you can get higher returns from the same investment if you invest in the best senior citizen fixed deposit scheme.

Multiple Interest Payment Modes

Senior citizens can choose one among four interest payment options – monthly, quarterly, half-yearly, or annual. The fixed deposit interest rates offered in monthly and quarterly modes are marginally lower than the rate offered in the half-yearly or yearly mode. Alternatively, you may select the cumulative mode and receive a lumpsum amount at the end of the term. Hence, before investing in a fixed deposit scheme for senior citizens, you can explore the various payout options and pick the right one. 

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Nomination and Auto-Renewal Facility

Financial institutions provide nomination facility, and you can stay assured about the safety of your hard-earned money. The nominee receives the principal and the accumulated interest in the unfortunate event of investor’s untimely demise. Additionally, to prevent wastage of time, you can choose the auto-renewal mode, where your investment will be renewed automatically when the fixed deposit scheme matures.

More Tax Benefits

Generally, the interest income from a fixed deposit scheme is taxable. However, if an investor’s interest income does not cross INR 10,000 in a financial year, they do not need to pay taxes. For senior citizens, the limit is INR 50,000. Hence, not only does a senior citizen gets higher returns from a fixed deposit scheme, but also extra tax deductions. Corporate entities like PNB Housing does not deduct TDS (Tax Deducted at Source) for an interest income of up to INR 5,000.

Doorstep Service 

Some financial institutions like PNB Housing offer doorstep service delivery for senior citizens. Hence, you need not move out of your house to invest in the best fixed deposit scheme. You can conveniently visit the website of the company or call their investor helpline number, place a request, and wait for the officer to arrive at the registered address.


A fixed deposit scheme provides you with worry-free funds that you can use to lead a financially fulfilling retired life. Ensure that you check fixed deposit interest rates offered by various financial institutions and pick the best one. 

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