A recurring deposit (RD) is one of the most secured investment policies which not only allows a depositor to earn good returns but also provides a flexible investment option. The banks offer a higher amount of interest rate on recurring deposits as compared to general savings accounts. However, different banks have different plans and accordingly, they offer different interest rates. RD calculator can be used to calculate returns and it can be accessed easily through online websites offering this service. It helps a depositor to calculate the maturity amount of the available plans and select the one that he finds most beneficial for him. Recurring deposits not only serve as a safe investment plan but also offer some exclusive benefits to the senior citizens as well. It is not always possible for aged people to learn the investment plans of share markets or mutual funds etc. Hence, they can opt for opening an RD account that offers exclusive benefits to these people through a simple and secure procedure of investment.
RD calculators are easily available and can be conveniently used by senior citizens as well just by following a few simple steps. SOURCE: askbankifsccode.com
People usually think that saving is important only for young people so that they can secure themselves in old age. However, this is not completely true. Savings are important for leading an independent lifestyle irrespective of age. Keeping this thought in mind, banks offer special benefits in recurring deposits for the senior citizens of our country. Also, make sure to use a RD calculator to calculate your returns. One must be aware of these advantages and know their banking rights to reap the benefits offered by the banking sector.
3 Major Benefits of Recurring Deposits For Senior Citizens
Along with the general benefits that are common for all like guaranteed returns, convenient payment options, etc., there are a few special privileges for the senior citizens in recurring deposits which are as follows:
Higher Interest Rates
The very exclusive benefit of recurring deposits is that it offers higher interest rates to senior citizens than the prevailing market rates. A senior citizen can avail an additional interest rate of 0.25% to as much as 0.75% depending upon the bank. This is not only done to provide better returns to the old people but also to induce them to save. It is very commonly seen that people start running out of their savings as they grow older. The additional interest rate on recurring deposits would help them to increase their wealth to some extent in a short period of time. A senior citizen can easily earn up to 8-9% interest on a recurring deposit of 1-year tenure. Using an RD calculator, senior citizens can calculate their returns.
Flexible Payment Options
A recurring deposit account can be opened with a minimum amount of INR 500 per month. There are a lot of senior citizens who receive monthly pensions but fail to utilize it efficiently. Also, there are people who get a fixed amount of money every month from their children for financing their basic needs. However, all these people usually do not use this money in any investments. An RD account gives them a reason to keep some money aside and save it for their own benefit. The best option is to use an RD calculator and calculate the estimated returns beforehand to plan the investment accordingly. It is not possible for old people to arrange a huge amount of money for any type of lump sum investment like fixed deposits. The flexible payment procedure of RD accounts enables them to become financially independent and strong.
Tenure Of Deposit
The tenure of recurring deposits usually varies from six months to 10 years. This wide range of tenure can be of great benefit for senior citizens. Expenses on health and medicines tend to increase as a person grows older. One can make a recurring deposit for the short-term also, which would help him to be financially prepared for any unexpected financial emergency. With the help of RD calculator, one can conveniently calculate the returns of the available plans. There is also the facility of premature withdrawal which is very helpful in the time of any financial crisis. Senior citizens can feel financially independent if they have a source of investment which they can withdraw anytime if the need arises. The bank charges only 1-2% as a penalty in case of premature withdrawal.
We often see a lot of senior citizens start living in old age homes because of the lack of financial support they face. This problem can be solved to some extent if the old people start saving and investing their money in recurring deposits. Apart from giving exclusive financial benefits, banks also help senior citizens throughout the account opening process. The queries of senior citizens are resolved on a priority basis so that they do not have to face any hassle in opening an account as well as during withdrawals. Also, modern day tools such as RD calculators can help senior citizens to calculate returns easily. RD accounts are sufficient enough to create a financial backup and they also yield a high amount of interest which increases a person’s wealth in a short period of time.