When it comes to retirement saving, senior citizens should choose fixed income investments, which provide a constant source of income while posing less risk than stocks and mutual funds. As a consequence, for older folks, a fixed deposit (FD) strategy, which provides a fixed income, might be a solid option, but the only risk is inflation risk. The firm offers two types of fixed deposit options: non-cumulative fixed deposit, where interest is paid monthly, quarterly, or yearly, and cumulative fixed deposit, where interest is compounded quarterly and paid on maturity. Senior citizens will receive 0.5 per cent additional interest on cumulative fixed deposits of 1, 2, 3, 4, and 5 years. There is no additional interest rate benefit for senior citizens, however, the company gives both normal customers and senior citizens above 8% inflation-beating returns on deposits of 36 months to 60 months.

Source: Mint June 04, 2022 04:06 UTC