Bank vs NBFC: Which Senior Citizen FD Scheme to Take?

Elderlies or simply people investing to secure their retirement often have this question, which senior citizen FD would be better? As of now, the Indian market has more than a dozen NBFCs and an equally greater number of banks offering FD schemes for senior citizens. 

What’s more? Whether you talk about the bank FDs or about the company FDs, both of them come with the same degree of flexibility, principal safety, and almost similar investment plans. So, how to choose the better one between the two options? Take a look at the interest rate offered by the two types of schemes and proceed with the one offering a higher ROI. 

Apart from that, make a list of pros and cons of the two schemes and then compare them to find out the better one. Accordingly, below are some advantages of investing in Bank FD vs company FDs.

Interest rates: First but foremost, senior citizen FD schemes offered by NBFCs offer a higher FD interest rate in India for Senior Citizen compared to the equivalent products offered by banks. For instance, the highest interest rate an elderly can get by investing in their senior citizen is 7.70%. On the other hand, the maximum interest for the same product offered by NBFCs is around 9.10% per annum.

Tax Rebate: Secondly, you can claim a tax rebate of Rs 1.5 lakh per year under section 80C of the Income-tax laws by investing in Bank FDs as well as Company FDs.

Bottom line: Both the schemes are quite lucrative and as an investor, you can invest in either of the two.  

Also, Read Related Article: Which Is The Best Fixed Deposit For Senior Citizens?