Senior Citizen Fixed Deposits offering up to 9.50% return in June – Check latest FD rates

financialexpress.com:

Fixed deposits (FDs) have long been a popular investment choice among investors, especially senior citizens looking for stability and regular income. Senior Citizen FDs are specifically tailored to cater to the needs of this demographic, offering higher interest rates and other benefits.

However, before diving into Senior Citizen FDs, it’s crucial to understand the nuances and considerations to make the most of them.

Senior Citizens FDs are fixed deposit schemes offered by banks and financial institutions exclusively for individuals above a certain age threshold, usually 60 years or older. These FDs typically offer higher interest rates than regular FDs, making them an attractive option for retirees or those looking for stable income streams during their golden years.

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Senior Citizen FDs usually offer interest rates that are 0.25% to 0.75% higher than regular FDs. This additional interest can significantly boost your income, especially over the long term.

FDs are known for their stability and predictability in returns, making them a preferred choice for risk-averse investors, particularly seniors.

Many senior citizens rely on FD interest as a steady source of income, especially after retirement. FD interest payouts can be monthly, quarterly, semi-annually, or annually, providing flexibility based on your cash flow needs.

Under Section 80TTB of the Income Tax Act, senior citizens are eligible for a deduction on the interest earned from deposits with banks, co-operative banks, and post offices. This helps in reducing the tax burden for retirees.

Senior Citizens FDs offer an attractive avenue for retirees and older investors