Senior citizens often have to face financial issues post-retirement. The primary challenge is to find a stable source of money after retirement. For the same reason, people think of securing funds after they retire. The best way to ensure funds post-retirement is by investing in an FD (Fixed Deposit).
You can reap better rewards post-retirement by opening an FD account while you work. Know the applicable interest rate before you apply for a new FD account. Read more about an FD account and fixed deposit interest rate in 2022.
Understanding an FD account
What do you know about an FD account in India? An FD account is different from a regular savings account. An FD account can help you reap better rewards after a certain period. When you open an FD account, you pledge to pay instalments over a period.
The instalments you pay keep on adding to the FD account. Once the FD payment tenure is over, you start receiving the money in instalments. The best part is that you also get interest charges via an FD account along with the principal amount. For example, people keep piling funds in their FD accounts while working.
When they become a senior citizen or stop working, they can have a steady source of money via the FD account.
An FD account is a risk-free source of ensuring a happy retirement life. Senior citizens can choose the FD amount based on how much money they want after the account matures. Usually, senior citizens receive monthly funds via their FD account, which they must have opened years ago.
A fixed deposit account can be opened with a reliable provider that pledges to offer you interest charges. The interest returned by the bank along with the principal amount deposited in the FD account, will depend on the bank.
The pros of a fixed deposit account for senior citizens are as follows:
- An FD account is more beneficial than a regular saving account as it returns extra money.
- A senior citizen can apply for a loan against the amount available in their FD account if needed.
- With the help of an FD account, senior citizens can ensure regular funds after their retirement.
What’s the interest rate for an FD account?
Before you know the interest rates, understand the factors responsible. Banks decide the interest rates for an FD account based on several factors like:
- The tenure of your FD account plays a role in deciding the loan amount. The tenure of an FD account is how long the user pays its instalments before reaping benefits. Fixed deposit interest rate increases as the tenure of the FD account increases.
- The interest rate for an FD account also depends on individual banks.
- The interest rate for FD will depend on whether you choose the cumulative or non-cumulative option for ROI.
- The interest rate for FD will also depend on the economic conditions. Sometimes, you get a higher interest rate than the pre-decided rate after the maturity of the FD account. It happens when interest rates increase drastically during the FD tenure.
With PNB Housing Finance LTD, you can get better interest rates for FD accounts. You can get an interest rate for FD anywhere between 5.60% and 9.40%. One should know that the interest rate for a fixed deposit account will differ according to the loan tenure.
With PNB Housing Finance LTD, senior citizens can enjoy an additional 0.25% rate of interest on an FD account. The interest rate for an FD account for senior citizens is more than that of a regular FD account.
Also, FD accounts can be opened even with a low monthly instalment. One should always try to opt for a higher maturity period to get better interest rates on FD accounts.
How to apply for a new FD account in India?
One can easily apply for an FD account in simple steps online. Via the official website of PNB Housing Finance LTD, you can request a call-back from an agent and learn about FD accounts. You may need to submit some documents for opening an FD account.
A fixed deposit account is a must-have for senior citizens to live a happy life post-retirement. Open an FD account right away!