Invest wisely in Fixed Deposits: A smart choice for senior citizens

2 MinsJune 30, 2023

Mr Shah debates that risk-taking capacity and age are inversely proportional. While his grandson emphasises, that age is just a number. Mr Shah reveals that he loved taking investment risks in his young days, and today, he only invests in FDs.

Invest Wisely in Fixed Deposits: A Smart Choice for Senior Citizens

Senior citizens and risky investments are poles apart. As one reaches the age of seniority, the goals of investing become safety and fixed returns. Hence Fixed Deposit is an investment that ticks all the boxes for senior citizens. FDs are stable, low-maintenance, fixed-income-generating investments.

Advantages of investing in fixed deposits for senior citizens

1. Higher Interest rates: Fixed deposits for senior citizens offer higher fixed interest. The primary reason is that senior citizens are low-risk investors for the bank as they are averse to risk and will not withdraw the funds until maturity. FD interest rates for Senior citizens are the highest compared to others.

2. Income flow: As FDs have the option of monthly interest payout, senior citizens can enjoy a steady flow of income for monthly expenses. An FD calculator can help assess the income received on certain investments.

3. Tax saving: Tax-saving FDs can help senior citizens save taxes under section 80C of the Income Tax Act under the old tax regime.

4. Guaranteed returns: On maturity of the FD, the fixed returns, as guaranteed, will be credited to the senior citizen's bank account.

5. Increased earnings: FDs are a great way to increase the earnings from an investment, as a fixed rate of return will be provided throughout the tenure of the investment.

6. No volatility: FDs are risk-free with zero volatility and assured returns compared to other market-linked investments.

7. Flexible tenure: FDs can be opened for a tenure ranging from 7 days to 10 years, which can be selected based on the senior citizen's investment objectives and financial needs.

A step-by-step guide to opening FD in Axis Bank

Axis Bank offers many FD options like the Digital Fixed Deposit, Tax Saver Fixed Deposit, Fixed Deposit Plus and Auto Fixed Deposit. Each one has unique features and benefits.

A Digital Fixed Deposit can be opened online with basic KYC documents without any existing savings account.

To open a fixed deposit account with an existing savings account, you must follow these steps:

1. Visit the Axis Bank Internet Banking or Mobile Banking App
2. Fill in all the relevant details like tenure, lump sum or installment payment, interest payout frequency etc.
3. Verify the details inputted on the screen.
4. Fixed Deposit will be booked successfully.

Also Read: [Know the different types of Fixed Deposits]

Eligibility criteria to open FD account by senior citizens

To open an FD account, senior citizens must have a savings account in any bank. Only in the case of the Digital Fixed deposit offered by Axis Bank even a non-account holder can open an FD account.

The other criterion to be eligible for a higher interest rate is that the depositor must be over 60 years of age. Even non-residents can deposit through the NRE or NRO accounts.


Fixed Deposit accounts are the most popular investment for risk-averse individuals, especially senior citizens. Knowing this, banks offer attractive FD interest rates to senior citizens. Opening, operating and closing an FD account is hassle-free and convenient.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision