Saving schemes today let you prepare well in advance for the future. They let you divert finances to where they will be required the most. But before you put your money into them you must know about them completely to make proper investment decision.
Fixed deposit is one such scheme which offers you low-risk, low-maintenance finance option to fix a lump sum and earn appreciable income on it. Let’s know more about it here -
Major NBFCs offer fixed deposit scheme with higher interest rate starting from 8.50% onward. It is a lucrative option as you can fix the amount and earn appreciable income. This income is tax free too up to an amount of Rs. 10,000. To save tax on income of more than Rs. 10,000 you can submit Form 15G and Form 15H to your lender.
Moreover, senior citizens receive 0.35% higher interest on the base rate. They can book the deposit online with minimum paperwork in their name or for their family. Upon renewal, depositors receive 0.25% higher rate on the base rate and thus can earn more on their fixed amount. Besides, you receive flexible tenure of 12 to 60 months to fix the amount and earn income.
Also Read: Best Investment for Senior Citizens
There are two types of withdrawals available - cumulative (to withdraw amount at the end of the maturity period) and non-cumulative (to withdraw at quarterly, monthly, half yearly and annual basis).
Rated high on safety and stability with ICRA’s MAAA (stable) rating and CRISIL’s FAAA/ stable rating so the deposit is never at risk. It helps to accumulate wealth and gradually grow your corpus with time.
You may also Read about: What is the Minimum Credit Score you Need to Avail a Loan
Watch the video below to know what are the Benefits of Fixed Deposits for Senior Citizen:
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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