Winning Strategies for Senior Citizen Fixed Deposit Now

Winning Strategies for Senior Citizen Fixed Deposit Now

May 29, 2023

Rajeev Kumar

FD rates for senior citizens have gone up to 9.6%. Read on to know the FD strategies senior citizens should follow now.

For senior citizens, 66 banks are offering 7.5% or more interest, and 29 are offering 8% or more.

Six Small Finance Banks are offering 9% or more FD interest to senior citizens. Most of these peak rates are on the 1-3-year tenors.

According to BankBazaar.com’s CEO Adhil Shetty, depositors should follow the following strategies in current times.

1. Lock in to the longest available tenors at peak rates.

2. At peak rates, there’s less need for laddering for better average rates and liquidity at various intervals.

3. Best option is to have one FD at the highest rate, ensuring better returns for a longer period.

4. Instead of changing banks, your best FD bet may be wherever you’re already banking.

5. If investing in Small Finance Banks, work around the Rs 5 lakh deposit insurance limit by the DICGC.

6. Always keep in mind that quarterly compounding is better than half-yearly or annual compounding for marginally padding up your returns.

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