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2 mins Read | 4 Months Ago

How FD Monthly Interest will help Senior Citizen

how-fd-monthly-interest-help-senior-citizen

 

A Fixed Deposit (FD) is one of the most robust investment options, available to investors of all profiles. FDs can be particularly beneficial for senior citizens seeking steady returns. Unlike traditional Savings Accounts, Fixed Deposits offer higher interest rates, where a lump sum amount is securely invested with a financial institution for a predetermined period.

Today, FDs can be tailored to the financial needs of investors. From 7 days to 10 years, Rs 10,000 to Rs 10 crore, ICICI Bank FDs cater to every requirement. What’s more, the interest earned can also be disbursed at regular intervals - whether monthly, quarterly or yearly. With monthly interest payouts, investors can gain a steady stream of monthly income. This can certainly provide another layer of financial security to retired individuals in their golden years. Above and beyond that, these deposits hold further value.

Advantages of Monthly Interest for Seniors:

  1. Encouraging Disciplined Savings: The monthly interest on Fixed Deposits encourages disciplined savings. It motivates seniors or those approaching retirement, to commit to a fixed period of savings, creating a stable foundation for financial planning
  2. Flexible Premature Withdrawal: Seniors enjoy flexible premature withdrawal, even for smaller amounts, helping them manage unforeseen expenses with ease. The accessibility ensures that funds are not tied up when urgency strikes
  3. Higher Interest Rates: Fixed Deposits yield significantly higher FD Interest rates, offering a lucrative avenue for seniors seeking substantial returns. An additional 0.50% interest rate sweetens the deal for senior customers
  4. Nomination Facility: Seniors can secure their financial legacy by nominating a beneficiary for their Fixed Deposit. This ensures a smooth transition of funds to the nominee in unforeseen circumstances
  5. Tax Deductions under Section 80C: Leveraging tax benefits, senior citizens can claim deductions of up to 1.5 lakh under Section 80C. This allows them to optimise tax liabilities while enjoying the stability of Fixed Deposit returns
  6. Tailored Interest Rates for Seniors: ICICI Bank offers higher interest rates for senior citizens, an additional 0.50% as a gesture of appreciation for their financial prudence. With ICICI Bank’s Golden Years Fixed Deposits, senior citizens can get an additional 0.10% on top of the extra 0.50%
  7. Premature Withdrawal with Minimal Penalty: Senior citizens can opt for premature withdrawal with a minimal penalty, which provides more room for liquidity. This flexibility ensures access to funds without significant financial setbacks.

How to Calculate Monthly Interest on FD

Calculating monthly interest on Fixed Deposit is a simple process. Follow these steps on our official portal to calculate returns:

Step 1: Visit the Official Portal

Visit ICICI Bank website and proceed to the FD section to calculate monthly interest on your Fixed Deposit

Step 2: Navigate to Fixed Deposit Calculator Page

Find and navigate to the Fixed Deposit Calculator page. This specialised tool will provide you with accurate and instant calculations once you enter your details

Step 3: Enter Essential Details

Enter the required details in the provided fields:

  • Deposit Amount: Specify the amount you wish to invest
  • Choose ‘Senior Citizen’ on the calculator
  • Interest Payout: Choose the frequency of interest payouts - monthly, quarterly or annually
  • Tenure: Define the duration of your Fixed Deposit
  • Maturity Date: Select the date on which your investment matures.

As these details are entered, the calculator automatically renders the interest receivable per month. This way, investors can compare different scenarios and select the optimal scenario.

The FD Calculator is also available on the iMobile Pay app.

How to Open FD with ICICI Bank?

The process of opening FD with ICICI Bank is user-friendly and efficient:

  • Log in to your Account: Access your ICICI Bank Account through Internet Banking or iMobile Pay. Navigate to the ‘FD Form’ section to start the process
  • Select Investment Amount and Tenure: Tailor your investment to your financial goals using the FD Calculator. Choose your desired amount and tenure. This ensures that your FD aligns with your specific needs
  • Set your Payout Plan: Customise your payout plan based on your preferences. You can opt for regular intervals like monthly payouts.

ICICI Bank Golden Years FD Interest Rates

ICICI Bank introduces the Golden Years FD scheme, offering attractive interest rates and exclusive benefits. Here's some key information about the scheme:

  • Resident Senior Citizen customers enjoy an extra interest rate of 0.10% for a limited time, supplementing the existing additional rate of 0.50% per annum
  • The additional interest rate is applicable to both fresh deposits and renewals made during the scheme period, ensuring flexibility for Account holders
  • The scheme caters to FDs with tenure ranging from 5 years 1 day up to 10 years, aligning with the long-term financial goals of senior citizens
  • Applicable to single FDs opened with ICICI Bank with an amount less than Rs 2 crore, the scheme accommodates a reasonable deposit limit. However, in the event of premature withdrawal, a penal rate of 1% applies
  • While introducing exclusive features for senior citizens, all other aspects of FD deposits, including terms & conditions remain unchanged, ensuring transparency and reliability for Account holders.

Conclusion

The monthly interest feature of Fixed Deposits stands as a financial boon for senior citizens. It not only ensures a steady and disciplined approach to savings but also provides flexibility through options like premature withdrawal. The elevated interest rates, coupled with tailored offerings for seniors, make Fixed Deposits an attractive option. In the golden years, when financial stability is needed, monthly interest from Fixed Deposits can lead to a comfortable retirement.

FAQs

  1. How much interest do senior citizens get on Fixed Deposits?
  2. Senior citizens receive an additional interest rate of 0.10% for a limited time, along with the existing additional rate of 0.50% per annum under the ICICI Bank Golden Years FD scheme.

  3. Can I get monthly interest on FD?
  4. Yes, senior citizens opting for the ICICI Bank Golden Years FD scheme can choose to receive monthly interest payouts, providing a consistent income stream.

 

 

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