On February 19, 2024, PNB Housing Finance introduced a time-limited promotion for its fixed deposits (FDs), featuring interest rates of up to 8.30 per cent specifically tailored for senior citizens. The revised FD interest rates are set at 8 per cent per annum for individuals below 60 years of age and 8.30 per cent per annum for senior citizens with a tenure of 23 months.
Girish Kousgi, MD & CEO, PNB Housing Finance, commented, “Fixed deposit is a secure investment tool not only for customers looking to embark on their financial investment journey but also for those with a moderate or low risk appetite. We are excited to announce our limited-period attractive interest rate offer on fixed deposits to encourage investors to adopt healthy investment habits. We are committed to delivering innovative and customized financial solutions that align with the evolving needs of our customers and help them save for the future.”
As per the information provided by the housing finance company, the enhanced interest rates are valid for all fresh and renewed fixed deposits made before March 31, 2024. Investors can benefit from these rates with a minimum deposit amount of ₹10,000, ensuring a secure avenue for wealth expansion.
Why do senior citizens invest in FDs?
FDs stand as a favoured investment choice among senior citizens in India, presenting a secure and reliable source of income. They encompass numerous advantages, such as
Elevated interest rates: Senior citizens commonly receive increased interest rates on FDs in contrast to the general public. The additional interest can vary between 0.25% to 0.50%, contingent upon the bank or non-banking finance company.
Tax advantages: Senior citizens can enjoy tax exemption on interest income earned up to Rs. 50,000 per year from FDs under Section 80TTB of the Income Tax Act.
Early withdrawal option: Certain FDs permit premature withdrawals, albeit subject to potential penalties. This feature can be beneficial for unforeseen expenses.
Automated renewal: The FDs can be configured to renew automatically upon maturity, offering a convenient method to seamlessly sustain interest earnings.
Senior citizens considering fixed deposits should commence their investments at an early stage, as a longer time horizon provides greater opportunities for the compounding of investment funds. However, a lot depends on one’s financial goals, thus, allowing senior citizens to decide how much and to what extent they must put their earnings in FDs.
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