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If someone is seeking safety and security balanced returns, Fixed Deposits [FDs] is an excellent investment option. FDs promise guaranteed returns and can easily be operated; they also don’t require constant monitoring.

Someone willing to apply for a fixed deposit and choose a term of their choice and use returns from their fixed deposits to live a comfortable and luxurious life.

Moreover, the senior citizen FD rate is much higher than the regular fixed deposit rates. Even when someone [ the investor] needs money due to some emergency at short notice, FDs allow them the money access.

There is a flexible process in fixed deposits that customers can choose tenor schemes such as cumulative, non-cumulative, loan, or overdraft facility of their choice.

Some key pointers and benefits of fixed deposits are as follows:

Keeps your earnings safe 

  • Most of the people who are prone to risk takings prefer investing in fixed deposits rather than any other form of investment.
  • As fixed deposits keep your savings safe and secure and offer growth in your savings.
  • Over the tenor, you choose FDs to deliver steady and fixed returns.

 Assured returns

  • Fixed Deposits offer fixed income products, and they guarantee assured returns.
  • Senior citizen’s FDs rate is a bit higher as they get income security, and with that, the growth of their savings also.
  • Initially, in the starting, the bank or corporate has to pay the rate of interest agreed upon after the money is deposited.

 End of tenor payout

  • In fixed deposits, the rate of interest is compounded on a quarterly or annual basis and then is reinvested along with the principal.
  • At the time of maturity, the accumulated amount is taken/ paid out to the investor.
  • The time of maturity of the fixed deposits varies from between 3 months to 10 years.

 Periodic payout

  • In this scheme, by the investor, the principal gets invested for the tenure chosen.
  • The rate of interest is paid by the investor on a monthly, quarterly, or annual basis depending upon the frequency of the interest payout opted by the investor.

 Degree of liquidity

  • In fixed deposits, there are important safeguards against money crushes: i.e. liquidity.
  • In fixed deposits, investors have access to funds at any time.
  • Moreover, if an investor is making premature withdrawals, it might attract a penalty where the investor will end up with the rate of interest lower than the one mentioned in the deposits’ certificate.

 Why is the senior citizen FDs rate is high?

Senior citizens FDs rate is high because:

  • Fixed Deposits provide the senior citizen with the financial instrument for increasing—wealth and savings on taxes.
  • The fixed deposits for senior citizens have an excellent choice for the senior citizens who are having a low or irregular income.
  • In most banks and corporates, the senior citizen FDs rate is high; therefore, they have a higher interest rate for senior citizens.

 Advantages of FDs for Senior Citizens

  • The rate of interest provided by the bank to senior citizens can be used to fulfil all their needs and responsibilities such as household expenses, paying their grandchildren’s education fees, etc.
  • Across the generations in India, FDs have been the most popular choice, which offers guaranteed interest returns with safety and security.
  • It is the most secure type of investment that does not get affected by market fluctuations and gives steady and fixed interest returns.
  • It does not need a large corpus; it can be opened with minimal deposits.
  • Mostly you can open an FDs account with just Rs 25,000 only.
  • By providing an additional avenue of funds, in times of need or requirement, you can even use your FDs for taking a loan.


As in the above paragraph, we have discussed the facts of fixed deposits and their benefits, so when we compare fixed deposits rates, it’s been seen that the senior citizens’ FDs rate is higher than the other fixed deposits.

Fixed Deposits are very useful, and it offers a lot of benefits especially to the senior citizens when compared with fixed deposits rate of others. For opening an account of FDs, one can reach their nearest bank or the one in which they have an existing account.

 Fixed Deposits offer a great means of safety and security to the savings of an investor.


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