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Fixed Deposits- Providing the Best Returns for Senior Citizen Investors

Investment choices for senior citizens are predominantly influenced by the safety of the investment vehicle and not so much by the returns. Returns do play an important role in the choice, but it is the assurance that their money will not be affected by market fluctuations which is more significant. Since senior citizens are in their retirement age, the steady monthly cash flow (salary) is lacking for most cases- this is where a secured investment, providing assured and steady returns like a Fixed Deposit for senior citizens  becomes a necessity.

Individuals older than 60 years of age prefer to park their surplus retirement funds in fixed deposits. By doing so, they can not only rest assured about their money being safe, but they can also benefit from the interest earned over the years.

Financial institutions (both banks and Non-Banking Financial Companies) provide a higher rate of interest for FD investors who are beyond the age of 60 years; compared to regular fixed deposit investors, senior citizens earn 0.5% more through their FDs.

With the latest reforms introduced in the financial sector, senior citizens can earn as much as 8% on fixed deposit investments that are worth Rs 75 lakhs for 10 years.

Of late, following the major influx of liquid cash into bank deposits, financial institutions have reduced their deposit rates to maintain stability. This does not imply that senior citizens will not be able to reap the benefits from fixed deposit investments- the interest rates for them is still at the range of 8% and sometimes even more, despite the rate cut. If you are nearing retirement then research best ideas for investment.

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