Skip to content
How Can A Fixed Deposit Help Senior Citizens In Their Financial Life?

How Can A Fixed Deposit Help Senior Citizens In Their Financial Life?

How Can A Fixed Deposit Help Senior Citizens In Their Financial Life?

A Senior Citizen Fixed Deposit is excellent for people retiring because it offers assured returns and higher interest rates. You can get a regular interest payout from your senior citizen fixed deposit to earn a stable income. An added benefit of a fixed deposit is that you can save taxes by investing in a tax-saving deposit. As the interest rates in an FD (Fixed Deposit) are predetermined, you do not have to worry about your investment amount getting impacted by market fluctuations.

Saving for the future is a priority, especially for senior citizens who look forward to enjoying their retirement with a steady income from their investments. When the elderly retire, they often look for the safest way to invest their money, and that's where a fixed deposit comes into play. An FD is the safest investment instrument, offering higher interest rates with assured returns. These qualities make it popular not only with the elderly but also for investors who are new to investing or have a low-risk appetite.

With a Shriram FD, you can get interest rates up to 9.20%* p.a. per annum, including a bonus of 0.50%* p.a. interest for senior citizens and 0.10%* p.a. per annum for women depositors. Invest in a secure fixed deposit with Shriram to get assured investment returns.

Check the interest rates for the investment you wish to make.

Let's explore what an FD is to understand its advantages and the benefits that senior citizens can avail of while investing in a fixed deposit.

What is a Fixed Deposit?

A fixed deposit is a type of investment that allows consumers to deposit a sum of money for a certain period. This service is provided by banks and Non-Banking Financial Companies (NBFCs). You can break an FD during its term under certain conditions. You will have to pay some fees to the bank/NBFC if you want to do so.

Shriram offers higher interest rates on an FD, ensuring you can achieve your future goals. Here are some benefits of opening a fixed deposit:

  • A fixed deposit investment is risk-free as the interest rates are independent of market fluctuations.
  • It offers flexibility to the people investing as they can select the amount and period they want to support.
  • You can avail of loans based on the amount and term of the fixed deposit.
  • Upon completion of the FD tenure, the entire amount invested, plus interest, will get deposited into the investor's account.

Also Read:Top 6 Benefits of a Fixed Deposit

Features and Benefits of a Senior Citizen FD

Most of the features of a senior citizen FD are similar to those of a regular fixed deposit account. But there is also a multitude of benefits that a senior citizen can get. Let's take a look at what they are:

  • Senior citizens can choose different interest payout options where they can either accumulate and earn more interest or be deposited in their account regularly.
  • A regular interest payout can prove beneficial for those who are retired or do not have a steady source of income. The FD will act as a supplementary income.
  • A senior citizen's fixed deposit can also be a tax saver under section 80C of the Income Tax Act.
  • The fact about fixed deposit for senior citizens is that you can get special interest rates and earn more money than a regular savings account.
  • Your deposit will be secure, and the interest rate will not change even with fluctuations in the market.
  • You can also avail of a loan against your fixed deposit if needed.

How can Senior Citizens avail of the Benefits?

Utilising the senior citizen advantages is not that difficult. Contact customer service at any time if you need help starting an FD. Shriram Fixed Deposit calculator makes it simple for everyone to find the interest rates and payout they will receive upon maturity of the fixed deposit.

If you want to invest in a senior citizen fixed deposit scheme, there is just one document you need to provide to prove your eligibility. Non-Resident Indians (NRIs) can also avail themselves of the additional FD benefits through NRO and NRE accounts.

Here's a list of documents you need to start a senior citizen fixed deposit:

  • You will need to be a resident citizen of India to be able to apply for the scheme.
  • The person starting the account must be above 60 years of age and will need an identity proof document for verification.
  • You also need proof of address documents like a Passport, Aadhaar Card, PAN (Personal Account Number) Card and passport size photographs for the bank or NBFC to begin the process.


Senior citizens can make the most of the unique benefits by investing in a fixed deposit. A healthy savings habit will benefit a smooth and peaceful retirement. A long-term FD for senior citizens can provide a stable income if they open a non-cumulative FD.

Invest in a Shriram Fixed deposit to get all these benefits and secure your future after retirement. A Shriram FD has the facilities of auto-renewal and auto-withdrawal of a deposit on maturity. You can also get an additional 0.25%* p.a. on all renewals of matured deposits.


1. How much is FD interest tax-free for senior citizens?

The tax exemption on a fixed deposit for senior citizens is up to Rs.50,000 per annum.This means that senior citizens do not have to pay taxes on FD interest earned up to Rs. 50,000 in a financial year.

2. Which FD is best for senior citizens?

An FD scheme that suits the financial requirement of a senior citizen will be the best for them. A tax-saving fixed deposit is one of the best options as senior citizens can save taxes and earn a higher interest rate.

3. What is the interest for 1 lakh in Shriram for senior citizens?

You can use the Shriram fixed deposit calculator to check the exact interest rate you can get for a deposit of your choice. The interest rate for a deposit of Rs. 1,00,000 would be 6.81% for 12 months.

Key Highlights:

  • People approaching retirement benefit remarkably from senior citizen fixed deposits since they provide guaranteed returns and higher interest rates.
  • You can get a regular interest payout from your senior citizen FD to earn a stable income.
  • With a tax-saver fixed deposit, you can save taxes by investing a 5-year deposit.
  • As the interest is predetermined, you won't have to worry about your fixed deposit getting impacted by market fluctuations.
Shriram completes 50 years of service!

To mark this momentous occasion, we have launched Shriram Jubilee Deposit - a 50-month investment scheme.
Invest now and earn up to 9.20%* p.a. (including 0.50%* p.a. for Senior Citizens and 0.10%* p.a. for Women)

Book a Fixed Deposit & get attractive/ high returns