Banks, NBFCs and other financial institutions offer simple and convenient fixed deposit schemes for senior citizens
Investment in FDs of 5-year tenure are exempt from taxes under section 80C of the Income Tax Act
Fixed deposits: Interest rates on FDs are almost always higher than savings accounts
Small finance banks can undertake all basic banking activities including lending and taking deposits
Fixed Deposit Investment tips: FDs carry lower returns than equities or mutual funds but provide safety of capital
You don’t have to withdraw money or break the FD. It remains as it is. It is merely pledged to the bank
Senior citizens can time and align their FDs with the varying tenures offered by the bank and encash them accordingly
Once a safe investment haven, fixed deposits currently lead to a wealth erosion. As per a rough estimate, around Rs 1 lakh crore is being eroded as FDs attract lower rates than the inflation in the country
The depositor is always asked to select a nominee who can claim the proceeds in the unfortunate event of the depositor's death
In SBI, an investor can also get access to loans up to 90% of the FD's outstanding value
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