Advantages And Disadvantages Of Fixed Deposit

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Time deposits such as FD and FD are good saving instruments that are designed to provide relief to everyone. This is because saving instruments are not just tax-saving tools. These are primarily designed for the purpose of providing financial security. And both earning youngsters and retired senior citizens can take advantage of such instruments.

Senior Citizen Fixed Deposit:
Fixed deposits for senior citizens are same as regular deposits. The only point of difference is that they usually offer better interest rates. Senior citizen fixed deposit can also be an additional source of income for many if managed properly.

How to open a senior citizen fixed deposit?
All time deposits made by senior citizens come under Senior Citizens Savings Scheme (SCSS). To open a senior citizen FD account in a post office, depositors have to visit the post office and fill the relevant
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Compound interest also means that the maturity value would be higher than expected. Some banks also offer 0.5% higher interest rates to the resident senior citizens. However, such increased interest rates are subject to a few specified conditions that are subject to the particular banks’ policies. The increased rates of interest and conditions can change as per the bank as well. In addition, such special interest rates are not applicable if the amount of investment exceeds the limit of Rs. 1 crore.

As per the new regulations, the interest rates offered to senior citizens go up to a maximum of 8% on time deposits made in banks. However, the deposit must be made for a period of 10 years and the deposit amount cannot exceed the limit of Rs. 7.5 lakh. According to Senior Citizen Savings Scheme (SCSS), time deposits up to a maximum limit of Rs. 15 lakh made in post offices will get interest rates of 8.5% with a maturity period of 5
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