FDs have always been the safest investment for senior citizens who need regular flow of income post-retirement. The latest update says that one of the leading banks has come up with a special FD scheme for the senior citizens with very high returns. For this scheme, a mere investment of ₹1,00,000 will attract interest of ₹24,000, making it one of the very few FD schemes with the highest yield.
Working of the FD scheme
The bank has launched a high-interest FD plan for senior citizens on an exclusive basis, offering interest rates of 8%-8.5% annually. Senior citizens can earn much higher returns with this special FD as compared to ordinary depositors, depending on the duration. A deposit of ₹1,00,000 would fetch total interest of ₹24,000 either as payouts on monthly/quarterly basis or as a lump sum on maturity.
Benefits for Senior Citizens
Designed with the goal of financial security for retirees, there are major advantages of this scheme:
- Interest rates are higher than for the holders of regular FD.
- Flexibility in opting for interest payouts on a monthly, quarterly, or yearly basis.
- Safe investment option because it is RBI regulated.
- The best options for generating fixed income post-retirement.
- Tax incentives under Section 80C, available for some tenures of the deposit.
What Makes This FD Tempting
The elderly prefer guaranteed income during times of high inflation and market risks as opposed to staking money in equities or mutual funds. This is an FD scheme for them that offers above-average interest rates with complete peace of mind. Offering a maximum return of ₹24,000 on ₹1,00,000 investment, this scheme is one of the most rewarding safe investment plans.
Comparison With Regular FD Rates
In the normal scheme of things, banks would offer interest rates around 6 to 7% for an ordinary depositor. However, senior citizens get an extra 0.5% to 1% return on this scheme, which really matters when it comes to total income. Even that little bit of bonus interest translates into great financial benefits for retirees.
Conclusion
The new FD scheme for senior citizens can be truly considered a treat for retirees. The investment of ₹1,00,000 would give interest of not less than ₹24,000, thus assuring steady and safe income. Being backed by the trust of the banking system, this FD stands as a very worthy option for those wanting financial stability without risks.