Here is a look at banks offering the highest interest rates on FDs with five-year tenure for senior citizens.
|Bank Name||5 Year||Qly Compound Return|
|IDFC First Bank||6.75||13974.99|
If you don’t want to go to the bank every month, the Senior Citizen Fixed Deposit can be paid out quarterly or semi-annually. You can choose the cumulative pay-out option if you already have other regular income streams and only wish to use FDs as an investment vehicle.
Whether it’s a medical emergency or your children’s wedding, a senior citizen’s financial needs are unpredictable. An FD is a valuable asset in such a situation. You can not only take advantage of the highest FD rates, but also build FDs that are tailored to your personal life objectives with varioys tenure options. According to HDFC Bank website, “you can time and align your FDs with the varying tenures offered by the bank and encash them accordingly. For instance, if you need to pay for a medical emergency, you can encash the short-tenure FD, while you continue earning good returns on your long-term FDs.”
Loan on FD
While you can get the best rates for senior citizens, your investment also helps you to get a loan fast and conveniently. While getting a loan as a senior citizen is tough due to dwindling income, a loan on FDs can provide a timely solution to your financial demands.
Furthermore, because you would be pledging your fixed deposit as collateral, the bank may be able to offer you a loan at a substantially cheaper interest rate.