Why Seniors Should Invest in FDs
Senior citizens enjoy:
- 0.5% extra interest rates
- Tax exemption up to ₹50,000 annual interest
- No TDS if Form 15H is submitted
Bank-Wise Senior Rates (2024)
| Bank | 1–3 Years | 5 Years |
|---|---|---|
| SBI | 6.7% | 7.0% |
| HDFC | 7.0% | 7.3% |
| Post Office | 7.5% | 7.5% |
Case Study: Retirement Planning
A 65-year-old with ₹20L FD @7.5% for 5 years:
- Monthly Payout: ₹12,500
- Total Interest: ₹7,50,000
- No TDS (with Form 15H)
Key Considerations for Seniors
- Choose cumulative FDs for larger maturity amounts
- Avoid premature withdrawals to prevent penalties
- Split FDs across banks for higher DICGC coverage