for Your Retirement Years
Fixed Deposit for Senior Citizens
If you are a retiree or senior citizen looking for a reliable investment option with steady returns, you may consider Fixed Deposits (FDs). Fixed Deposits for senior citizens are simple to invest in and offer stable, predictable returns. FDs for senior citizens are designed especially for investors who are looking to get a steady income during retirement.
Senior citizens usually get higher FD interest rates. This makes FDs a reliable choice for earning a regular income with minimal risk for senior citizens. For instance, Shriram Unnati FD provides interest rates of up to 8.15%* p.a., inclusive of 0.50%* p.a. for senior citizens and 0.05%* p.a. for women depositors. To know more about FDs for senior citizens, including benefits, eligibility and documents required, please read on further.
FD Interest Rates for Senior Citizens
Interest rates on fixed deposit for senior citizens are generally higher than the rates provided to general category investors. Shriram Finance provides an additional interest rate of 0.50%* p.a. for senior citizens on Shriram Unnati Fixed Deposit. FD interest rates also vary depending on the tenure of the deposit. Typically, a longer tenure means higher interest rates.
FD for Senior Citizens - Highlights
- High Interest Rates: Senior citizens often enjoy higher interest rates on their FD investment.
- Premature Withdrawal: Senior citizens may be charged penalty fees on premature withdrawal of fixed deposits. Please note, there is a lock-in period of 3 months before you can withdraw your FD prematurely.
Here are the FD interest rates for senior citizens, inclusive of an additional 0.50%* p.a.
| Non-Cumulative Deposits | Cumulative Deposits | ||||
|---|---|---|---|---|---|
| Period (months) | Monthly % p.a | Quarterly % p.a | Half yearly % p.a | Yearly % p.a. | Yearly % p.a. |
| 12 | 7.25 | 7.30 | 7.36 | 7.50 | 7.50 |
| 15 | 7.49 | 7.53 | 7.61 | 7.75 | 7.75 |
| 18-23 | 7.39 | 7.44 | 7.51 | 7.65 | 7.65 |
| 24-35 | 7.49 | 7.53 | 7.61 | 7.75 | 7.75 |
| 36-60 | 7.81 | 7.86 | 7.94 | 8.10 | 8.10 |
Why Should FDs be a Part of Senior Citizens’ Investment Portfolio?
Senior citizens can benefit from having FDs as a part of their investment portfolio for multiple reasons. Unlike market-linked investments, FDs offer predictable returns. This makes sense for investors who prefer capital preservation over high-risk, high-reward opportunities. This is particularly important for senior citizens who often rely on their savings for day-to-day expenses.
FDs also provide flexibility in terms of tenure and interest payout options. So senior citizens can tailor their investments to their specific financial needs. With exclusive higher interest rates for senior citizens, they maintain their standard of living post-retirement with a steady source of income.
Also, the low-risk nature of FDs makes them a stable tool within a diversified investment portfolio. Overall, FDs offer a good mix of security and steady income.
What Are the Features and Benefits of FDs for Senior Citizens?
FDs designed for senior citizens come with various advantages.
Here are some of the key benefits for senior citizens:
Stable Returns
FDs offer stable and steady returns for senior citizens as they are not affected by market fluctuations. Shriram Unnati Fixed Deposit provides one of the highest interest rates of up to 8.15%* p.a. (inclusive of 0.50%* p.a. for senior citizens and 0.05%* p.a. for women depositors).
Moderate Liquidity
Although FDs are typically locked in for a fixed tenure, they sometimes come with the flexibility of premature withdrawal (with a penalty fee). This ensures liquidity. Please note, there is a lock-in period of 3 months before you can withdraw your FD prematurely.
Regular Income
Senior citizens may opt for periodic interest payouts. At Shriram Finance, we offer non-cumulative FD with monthly, quarterly, half-yearly or yearly interest payout options.
Nomination Facility
Senior citizens may easily nominate a family member to ensure smooth transfer of funds in case the necessity arises.
Eligibility Criteria for FDs for Senior Citizens
The eligibility criteria to open an FD for senior citizens with Shriram Finance include:
Eligibility Criteria
- Must be a resident of India
- Non-Resident Indians (NRIs) can only deposit through NRO accounts. (NRIs must apply offline only)
Citizenship
- 60 years or above at the time of deposit or renewal
Age
Documentation Requirements - FDs for Senior Citizens
Required Documents
Identity Proof- Aadhaar card, voter ID, passport, or driving licence
Address Proof- Aadhaar card, voter ID, passport, driving licence or NREGA card. A latest utility bill, not more than two months old, can be submitted as a deemed OVD in place of an OVD. However, the OVD must be submitted within three months.
Bank Account Details- A copy of the passbook or a personalized cancelled cheque
Photographs- Recent, clear and coloured passport-sized photographs
How to Invest in an Fixed Deposit for Senior Citizens?
Investing in Our Fixed Deposit is usually a simple process. At Shriram Finance, we provide an end-to-end digital process through our website or Shriram One app.
Follow these steps to open an FD with Shriram Finance:
- Step 1Register using your mobile number, pin code, and residency status. Click 'Invest Now'.
- Step 2Choose your desired deposit amount and select your tenure and payout option based on your preferences.
- Step 3Enter your PAN and Aadhaar details, verify via OTP and complete KYC with a quick selfie.
- Step 4Provide occupation details and add your bank details for maturity credit, nominee information and set the maturity instructions.
- Step 5Complete declarations and make payment via net banking, UPI or debit card.
- Step 6Receive instant confirmation via SMS/email and get your digital FD certificate within 7 working days.
Understanding Cumulative and Non-cumulative FDs for Senior Citizens
Cumulative and non-cumulative fixed deposits are available for senior citizens, each catering to different financial needs.
- In a cumulative FD, the interest is compounded and paid out at the end of the maturity period along with the principal amount. This option is ideal for senior citizens who do not require regular income and prefer to accumulate their interest earnings over time.
- In a non-cumulative FD, interest is paid out periodically—monthly, quarterly, half-yearly, or annually—depending on the senior citizen’s choice. This option suits senior citizens who need a steady income stream to meet their regular expenses.
- Choosing between cumulative and non-cumulative FDs depends on whether the senior citizen seeks regular income or prefers to let the interest grow until maturity for use as lump sum or retirement corpus.
Planning for Retirement: A Few Tips for Senior Citizens
Effective retirement planning is important if you want to have financial stability and peace of mind during your retirement years.
Choose cumulative FDs if you prefer to let your interest compound and grow your corpus over time. This is ideal for long-term wealth accumulation. Alternatively, select non-cumulative FDs if you require a steady stream of regular income to manage day-to-day expenses. Align your choice with your current financial obligations and future plans.
Spread your FD investments across various maturities (short, medium, and long-term) and multiple trusted financial institutions. This approach reduces risk, improves liquidity options, and enhances the safety and resilience of your retirement portfolio.
Monitor your FD investments periodically to ensure they continue to meet your evolving financial goals.
Key Takeaways
How to Withdraw the Maturity Amount from an FD for Senior Citizens?
Withdrawing the matured amount from a fixed deposit for senior citizens is simple. Here’s the process for withdrawing your matured amount from an FD booked through Shriram Finance
- While booking your FD, you will be asked to choose how you want your FD handled on maturity.
- Opt to receive the matured amount directly into your linked bank account if you don’t want to renew it for another term. Alternatively, select auto-renewal to reinvest the amount.
- To receive your matured FD amount automatically to your linked bank account, choose "Refund on Maturity."
- This ensures a smooth and automatic transfer of the funds on the due date.
- Please note that if you wish to withdraw your FD investment early, a penalty fee will be levied. Also, there is a lock-in period of 3 months before you can withdraw your FD prematurely.
- Try to keep your FD investment locked-in to maximise your returns on maturity.
FAQs
Are fixed deposits for senior citizens safe?
Yes, fixed deposits for senior citizens are safe and are generally considered reliable as they are not affected by market-linked fluctuations. They usually carry minimal risk and offer predictable returns. If you are planning for your retirement, it is wise to invest in an FD for a consistent stream of income. Shriram Unnati Fixed Deposit provides senior citizens an additional 0.50% with steady and stable returns of upto 8.15% per annum.
What is the interest rate on FDs for senior citizens?
While the exact interest rate on Fixed deposit for senior citizens may vary with the financial institutions, these FDs generally offer a higher interest rate than regular FDs. With Shriram Finance senior citizen FD, senior citizens can avail upto 0.50% with returns upto 8.15%.
What are the benefits of investing in an FD for senior citizens?
The benefits of investing in an FD for senior citizens are many, like higher returns than regular FDs, flexible tenure, stable returns, etc.
What is the maximum and minimum tenure for FDs for senior citizens?
FD tenure for senior citizens at Shriram Finance typically ranges from a minimum of 12 months to a maximum of 60 months.
How do Fixed deposit for senior citizens compare to other investment options in terms of returns and safety?
Fixed deposit for senior citizens offer relatively steady returns compared to market-linked investments like stocks or mutual funds. This makes FDs a suitable investment for senior citizens.
Are there any penalties for premature withdrawal of funds from FDs for senior citizens?
Yes, there are penalty charges involved for premature withdrawals from FDs for senior citizens.
Can I renew an FD for senior citizens on maturity?
Yes, you can usually renew an FD for senior citizens on maturity without any hassle. Some banks and NBFCs may even provide additional interest rates on renewal. However, it is important to check with your bank or NBFC for renewal terms.
Can senior citizens transfer the FD to another bank?
While the FD itself cannot be transferred, senior citizens can close the FD with the current bank and open a new FD with another bank. This process might involve premature withdrawal penalties and reinvestment of the amount.
What documents do I need to provide to open an FD for senior citizens?
Documents required for an FD for senior citizens are any one valid proof of age, identity, address and income.
Can I open a joint FD for senior citizens?
Yes. You can open a joint FD for senior citizens through offline (at branches). However, this option is not available online.
What happens if a senior citizen does not withdraw the FD amount after maturity?
If a senior citizen does not withdraw the FD amount after maturity, the FD is typically auto renewed or must be renewed manually within a grace period, earning interest at prevailing rates. Otherwise, interest stops accruing post maturity, and the depositor can withdraw the amount anytime later. Specific rules and interest rates may vary by financial institution and product type.
How can senior citizens receive their interest payouts from an FD?
Senior citizens can choose to receive interest payouts on a monthly, quarterly, half-yearly, or annual basis, depending on their financial needs and the terms of the FD.
Are there any restrictions on the amount that can be invested in an FD for senior citizens?
There are generally no upper limits on the amount that can be invested in an FD for senior citizens, though minimum deposit amounts may apply. It's advisable to check with the specific bank or financial institution.
Can senior citizens opt for monthly income schemes with FDs?
Yes, senior citizens can opt for monthly income schemes where interest payouts are made on a monthly basis, providing a regular income stream.
Do FD interest rates for senior citizens vary by financial institutions?
Yes, FD interest rates for senior citizens can vary between banks and financial institutions. It's beneficial to compare rates and terms before investing.
Can senior citizens open multiple FD accounts?
Yes, senior citizens can open multiple FD accounts with different banks or financial institutions. Each FD will have its own set of terms and interest rates.
How can senior citizens check the status of their FD online?
Senior citizens can check the status of their FD online by logging into the customer portal or the Shriram One app. It provides details such as maturity date, interest rate, and balance.
Disclaimer
With regards to deposit-taking activity of Shriram Finance Limited (’SFL’), viewers may refer to detailed information and T&C provided in our application form available at https://www.shriramfinance.in/downloads. The Company is having a valid Certificate of Registration dated 31st January 2023 issued by the Bank under section 45-IA of the RBI Act. However, the Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.
