Senior residents can often profit from an extra 0.50 p.c interest price on high of the common charges supplied by most banks for mounted deposits with various tenures.The interest earned from these deposits is paid out to buyers at mounted intervals, akin to month-to-month, quarterly, semi-yearly, or yearly.
Top 5 Senior Citizen Bank FDs:
So which are the highest bank mounted deposits for senior residents? Which banks offer the highest interest charges on bank FDs for senior residents? We check out the highest 5 senior citizen bank mounted deposits as listed by ET Intelligence Group:
(*5*)
Source: ET Intelligence Group
Unlike Senior Citizen Savings Scheme and Post Office Monthly Income Scheme, bank FDs offer higher flexibility by way of tenure. Investors can unfold their funds throughout totally different maturities utilizing a ‘laddering approach’ as a substitute of locking them in for a selected interval, says an ET report.
Also Read | Top 5 Bank FDs: Which banks offer the perfect mounted deposit charges? Check List
This strategy ensures liquidity and helps handle ‘reinvestment danger’. As the shortest-time period FD matures, it may be reinvested for the longest period, and this course of might be repeated with different maturing FDs. It’s essential to make sure that common revenue wants are met and that deposits are distributed throughout numerous maturities and establishments.
Investing in a 5-yr tax-saving bank mounted deposit might help save tax, because it qualifies for Section 80C tax advantages. However, one of these deposit comes with a compulsory 5-yr lock-in interval, and early withdrawal isn’t permitted. While the interest revenue is taxable, the quantity of tax saved within the yr of funding compensates for this.
