Maximising The Earning Of Senior Citizens Is Now Easy With FDs

Reducing risk and ensuring returns is one of the top priorities of the elderly investor. Only with such a saving and investing tool can retirees safeguard the riches they have amassed over a lifetime of labour. In this regard, fixed deposits are still a popular choice, even if many other types of investments are available for retirees. The stability of assets and the certainty of returns make a fixed deposit a safe plan for their retirement. Similarly, they should also focus on TDS on fixed deposits for senior citizens.

Senior citizen For FDs: An overview

Senior Citizen Fixed Deposits (FDs) are a highly lucrative investment opportunity for those over the age of 60. Usually, it can only be opened by a citizen or permanent resident of India. Moreover, these FDs are also available to senior NRIs who choose to use their NRE or NRO accounts to open them.

Since fixed deposits offer a comparatively higher interest rate, the scope of maximising earnings is also higher. Since there is no limit on the money one can invest and how many FDs one can have, senior citizens can diversify their retirement funds across financial institutions to amp up their income.

Having said that, the depositor must be at least 60 years old to open a senior citizen fixed deposit account. Some banks may accept applications for this type of FD plan from customers who are 55 and older but have taken early retirement. This rule is subject to certain conditions and may vary from one financial institution to the next.

Documents required

The prerequisites for opening a senior citizen FD are outlined below –

  • ID proof (voter ID card, passport, PAN card, driving licence, Aadhar card)
  • Age proof (birth certificate, Aadhar card)
  • Address proof (utility bills, Aadhar card)
  • Photograph
  • Bank account details

With these basic details out of the way, let’s focus on the reasons why FDs are beneficial for senior citizens.

Reasons to invest in FDs for senior citizens

– Low-risk and guaranteed return

A term deposit like FD is more stable than other ways to invest money. The reason behind this claim is that the interest rate of this investment instrument is fixed throughout the term. Hence, depositors know what to expect from this investment, no matter how the market or economy does.

– Source of steady income

Retired people need a steady source of income, and FDs can be a great option. Usually, the interest of senior citizen FDs is higher than the standard ones, thus, higher earning opportunities.

Furthermore, with FDs, depositors can choose how they want their interest payment to be. They can get their interest payments every month, quarter, half-year, year, or when the loan matures. In this way, the interest on their FD can help them meet their financial needs by giving them an extra source of income.

– Liquidity

Another significant advantage of FDs is the liquidity it offers. Even though depositors are investing for a set time, in case of any emergency, they can withdraw the funds by paying a small penalty.

– ODFD or Credit Card against Fixed Deposit

Even though FDs are a great way to maximize savings, depositors can use them to their advantage to get credit in case of any exigencies. They can use the FD as collateral and then apply for a Overdraft or Credit card against your FD as per their requirements.

– Can be a tax-saving tool

The tax saving fixed deposit available via financial institutions like RBL Bank can be a great way for senior citizens to get income tax deductions. 


Opening an FD account for senior citizens is helpful, and the benefits highlighted above prove that. Therefore, if you, as a retiree, plan to increase your earnings without taking too much risk, FD is a great option.

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