Will RBI cut interest rates? What a great opportunity for senior citizens to get FD! Read full information

Fixed Deposit for Senior Citizens: The US Federal Reserve has recently cut interest rates. Now it is believed that the Reserve Bank of India (RBI) can also cut its rates. In such a situation, if senior citizens want to make fixed deposits in the near future, then this is the best time.

High returns are guaranteed

Designed for senior citizens, fixed deposits, which generally offer high returns, make them a safe income option for retirees. In such a situation, it is important to be updated about interest rates before investing.

Compared to normal FDs, FDs designed for senior citizens get 0.50 per cent higher interest, so the expected returns in the long run are also higher. Not just the interest rate, how long the FD is to be held before investing is also an important factor. Generally, fixed deposits made for longer periods earn higher interest.

Take care of taxes also

Keep one thing in mind that FD. There is tax on it and it is a matter of relief that senior citizens also get huge discount on it. In such a situation, before making FD, it is important to understand what are the laws related to it and how much return you will get after tax.

Liquidity is the main factor

Liquidity is an important factor in fixed deposits for senior citizens as it provides easy access to funds for situations like medical emergencies. In such a situation, it is important to strike a balance between returns and liquidity before investing.

Overall, with proper understanding of the tenure, interest rates and applicable taxes, fixed deposits can prove beneficial for senior citizens.