Here’s why you must have a Senior Citizen Savings Account

Not all savings bank accounts are created equal, and the difference is most evident when you look at a senior citizen savings bank account. If you are over 60 or on the cusp of that milestone, you should consider taking advantage of the features and benefits of this specialised account.

Senior citizen account holders get preferential service, higher returns on specific investments such as Fixed Deposits (FDs) and other value-added benefits from the bank. Plus, of course, there are additional tax benefits from the government.

Here are some reasons why switching to a senior citizen savings bank account is a smart move for anyone who has retired – or is approaching retirement.

Higher interest rates

Senior citizens can benefit from preferential interest rates on fixed deposits with a senior citizen bank account. The rate of interest on these deposits is usually 0.25%-0.5% more than that offered on standard fixed deposits.

IDFC FIRST Bank Senior Citizen Savings Account offers lucrative investment options for senior citizens on FD. Those aged 60 and above can earn 0.5% per annum extra rate of interest on FD. Over the long term, this could translate into a much welcome incremental income compared to other investment options.

You benefit from greater flexibility and customisation of investment with IDFC FIRST Bank. You can choose a deposit tenure based on your goals, going up to 10 years, and choose the frequency of interest credit (monthly or quarterly basis, depending on your income needs). No penalties are levied on early withdrawals; in an emergency, you can make a quick redemption, and the funds will be available.

Better earnings on idle funds

Many senior citizens have a passive income stream in the form of rent, commission, consultancy fees, etc. If you, too, have an income or excess funds in your senior citizen savings account, you need not worry about redeploying the capital. IDFC FIRST Bank allows you to earn up to 7% p.a. interest on your savings account balance, which is significantly higher than what most other banks offer.

What’s more, the interest is credited on a monthly basis as opposed to the quarterly norm followed by other major banks. This allows your money to compound quicker and helps you accumulate your nest egg post-retirement.

Ready access to other investment products

A senior citizen savings bank account brings the convenience of investing to you. There’s no need for you to contact multiple investment agencies, make in-person visits, or fill out tedious paperwork to take advantage of various investment products. In addition to FDs and RDs, you can access numerous other investments from your netbanking platform or mobile apps – such as mutual funds, trading and Demat accounts, gold, exchange-traded funds (ETFs), etc.

Additionally, these accounts also help you monitor and manage all your investments via digital channels and receive monthly updates along with your bank statement for record-keeping.

Complimentary insurance
 

Health insurance is an absolute necessity for senior citizens. However, as you get older, the insurance premiums continue to get more expensive due to the insurable risk.

In such a scenario, even a small mishap can put a big dent in your finances. New-age banks protect you against unforeseen risks with a complimentary personal accident insurance cover. You don’t need to do paperwork, undergo fitness tests, or even pay premiums – the personal accident insurance cover comes as a value-added benefit with a senior citizen savings account.

Priority service at bank branches

As a senior citizen, you can enjoy priority treatment at bank branches. In fact, you can even request to have various banking services at your home. For investment assistance, banks also deploy dedicated relationship managers to your account to guide you along the way. 

This convenience extends to out-of-branch services as well. For example, you can use your IDFC FIRST Bank VISA Platinum Debit Card for free and unlimited transactions at any bank’s ATM all over the country. The card also gives you complimentary access to domestic airport lounges once every quarter, ensuring stress-free travel.

Conclusion

A senior citizen savings account is not just another bank account but a gateway to a secure, comfortable, and financially rewarding life post-retirement. If you are above 60, open a new senior citizen savings account with IDFC FIRST Bank to leverage all these benefits and more.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank 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 mentioned. Please consult your financial advisor before making any financial decision.