How can FD for senior citizens help in their financial wellness

How can FD for senior citizens help in their financial wellness

08 February 2024 | By INDIE

Fixed Deposits (FDs) are a prudent financial instrument, offering a steady income stream and capital security, especially to those in their old age where stable returns are essential. This product is highly favoured owing to its best fixed deposit rates for senior citizens, predictable returns, and safety. Given its features, senior citizen FDs are an enticing product for those looking for consistent income after retirement.

One of the best FDs for senior citizens is offered by IndusInd Bank’s INDIE. Read on to understand the reasons for INDIE to be classified as one of the best senior citizen fixed deposit issuers and how senior citizens can make the most out of FDs.

How can senior citizens leverage FDs for financial well-being?

Regular income source

Fixed deposits offer predictable and consistent income, a feature particularly advantageous for senior citizens. The interest constituent from such deposits can be received at periodic intervals based on the preference of the depositor. This periodic fund inflow is important for managing regular expenditures, particularly for those who depend on fixed incomes after retirement. It provides a financial cushion and reduces the need to dip into the principal amount, thus preserving their capital.

Higher interest rates

Senior citizens get access to preferential fixed deposit rates, which are usually higher than those provided to younger depositors. Senior citizen FD rates allow senior citizens to grow their funds at a higher rate while not taking higher risks for the same. The higher rate of interest ensures that their savings grow at a rapid pace, assisting them in outpacing inflation, which is important for maintaining their buying power after retirement.

Accessibility and flexibility

INDIE fixed deposits are customised to be flexible and inclusive. With a minimum deposit requirement of only ₹1,000, they are accessible to a broad range of senior citizens, including those who may not have huge investment amounts. Moreover, such FDs provide flexibility in terms of repayment tenure, permitting depositors to select a duration that matches their financial planning.

Financial security

In addition to the best FD interest rates for senior citizens, this financial instrument also offers security. In occasions of economic uncertainty, when market-linked investments may be volatile, FD stands as a haven. The FD returns are fixed and unhindered by market fluctuations, offering mental peace and a sense of security to senior citizens who might not have the potential for high-risk investments.

Tax benefits

Senior citizens enjoy unique tax advantages with fixed deposits. Once the individual approaches the senior citizen age for FD i.e., 60 years and above, they can claim a tax deduction of up to ₹50,000 from their interest earned under section 80 TTB of the Income Tax Act, 1961. This advantage extends to the interest generated on tax-saving FDs too, making them tax-efficient products.

Emergency fund accessibility

An excellent feature of INDIE fixed deposits is the potential to link the FD to a savings account. This unique facility permits seniors to get hold of funds from their fixed deposit in times of need, without having to break the entire deposit. When the balance in the savings account runs low, funds from the FD can automatically be utilised, ensuring liquidity during emergencies.


Fixed deposits, particularly those with the highest fixed deposit interest rates and flexible features for senior citizens, serve as an excellent financial product. They not only offer financial security and a stable income but also come with added benefits that cater to the unique needs of the elderly. Opening an INDIE FD account can be a wise decision, providing both mental peace and financial stability in the retirement years.

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.