Selecting the right savings account for senior citizens helps them enjoy financial benefits and convenience. Accounts meant particularly for citizens can offer advantages like relatively higher interest rates and lower requirements for minimum balance. Let us understand the accounts and their benefits in detail:
Types of Bank Accounts for Senior Citizens
Senior citizens have multiple banking options that are made to fit their financial needs. These accounts offer various benefits and provide easy access. In order to understand the benefits, you need to understand the kinds of bank accounts for senior citizens first:
1. Savings Accounts
A senior citizen savings account can be considered a good option. It offers a vast range of benefits and features that look after the needs and requirements of senior citizens. These ensure that the financial aspect of senior citizens is stress-free and retirement is comfortable.
2. Fixed Deposits and Recurring Deposits
Fixed deposits are popular investment options for senior citizens due to their nature of safety and assured returns. Their interest rates are higher, and tenure is flexible. Senior citizens are also allowed by some banks to prematurely withdraw their deposits with minimal penalties. Fixed deposits also have tax-saving benefits that reduce taxable income and help with tax savings.
Recurring deposits are also an option for senior citizens since they provide a fixed income investment. Senior citizens get guaranteed returns without being involved in the risks associated with the market. Interest rates are higher for recurring deposits as well.
3. Accounts Specific to Senior Citizens
There are banks that have accounts specifically designed for senior citizens. AU Small Finance Bank is one among them. Their Senior Citizen Account is particularly made for people aged 60 and above, and a wide range of benefits is offered for their needs. The features of this program include:
- High interest rates for the AU senior citizen savings account and the AU fixed deposits.
- Discounts are provided on locker rentals.
- A dedicated senior citizen desk where all queries related to banking are solved.
- Paperless banking services are also provided.
There are multiple benefits offered as well, such as:
- Medical assistance consists of a range of wellness services.
- Home services that provide services like home cleaning, painting, packing and moving, etc.
- Creation of will and professional assistance in it.
Important Features to Consider while Selecting Bank Accounts
Senior citizens need to understand factors beyond interest rates while choosing a bank account. There are multiple features that need to be considered before finalising a bank account. The account has to be an appropriate proportion of convenience and financial safety for it to be beneficial for senior citizens. Let us explore the factors you need to understand in detail before choosing a senior citizens’ bank account:
- Interest Rates and Compounding Frequency: Higher interest rates and greater frequency of compounding help in growing savings faster.
- Minimum Balance and Penalty Charges: You must inquire about the minimum balance, according to which you can maintain a fixed income.
- Accessibility and Customer Support: The Presence of ATMs and quick customer service is highly crucial for senior citizens.
- Additional perks: Discounts, free lockers and other perks bring additional value to your selected bank account.
Conclusion
Selecting a bank account that is well-suited with senior citizens is important for ensuring their ease of access and security. Aforementioned factors also need to be considered beforehand so that senior citizens can find accounts that actually fit their needs. Senior citizens need to be well aware of these specialisations for a smoother banking experience in their retirement period.
