On February 19, 2024, PNB Housing Finance introduced a limited time promotion on fixed deposits (FDs) featuring interest rates of up to 8.30%, specially tailored for senior citizens. The revised FD interest rate will be set at 8% per annum for individuals below 60 years of age and 8.30% per annum for senior citizens with tenure of 23 months.
Girish Kogi, MD and CEO of PNB Housing Finance, commented: We are pleased to announce attractive interest rate offers for a limited period on term deposits to encourage sound investment habits among our investors. We are committed to providing innovative, customized financial solutions that meet our customers' evolving needs and help them save for the future. ”
According to information provided by the housing finance company, the enhanced interest rate will apply to all new and renewal term deposits made up to March 31, 2024.Investors have a minimum deposit of INR10,000, ensuring a safe path to expanding your wealth.
Why do seniors invest in FD?
FD is a preferred investment option among senior citizens in India, providing a safe and reliable source of income. These include many benefits such as:
increase in interest rates: In contrast to the general population, senior citizens get higher interest rates on FDs. The additional interest varies between 0.25% and 0.50% depending on the bank or non-bank financial company.
Tax incentives: Senior citizens can enjoy tax exemption on interest income up to Rs 1 million. 50,000 per annum from FD under Section 80TTB of the Income Tax Act.
Early withdrawal option: Certain FDs allow early withdrawals although penalties may be levied. This feature comes in handy when unexpected expenses arise.
Automatic updating: FDs can be configured to renew automatically on maturity, providing a convenient way to seamlessly maintain interest income.
Seniors considering fixed deposits should start investing early, as the longer the term, the greater the opportunity for compounding on the invested funds. But much depends on personal financial goals, so seniors can decide how much and to what extent they need to put their income into an FD.
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