Generally investors find fixed deposit schemes best when they expect guaranteed returns from their investments.
Because fixed deposit schemes offer them fixed interest on maturity and they also get back the principal amount.
Hence, many senior citizens use FD as a retirement plan. They invest in it once and get income in monthly, quarterly, half-yearly or yearly installments.
That way, let’s see how much interest senior citizens earn on investments in fixed deposit schemes over 5 years.
5 year plan
If senior citizens invest Rs 5 lakh in a 5-year fixed deposit scheme with SBI Bank, they will get an interest of Rs 1,90,210 at 6.50 per cent interest on maturity. That means you will get Rs.6,90,210 along with the original amount invested.
It is worth noting that this investment scheme will be tax exempted up to Rs.1.50 lakh as per section 80C of the Income Tax Act.
