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Things to keep in mind before opening a senior citizen savings account

Your risk appetite may change through life. When you are young, you might be able to look for investment options with more risk as you have time to correct it even if something goes wrong. But as you age, capital protection matters as much as capital appreciation.

It becomes especially essential when you step into the senior citizen category. A senior citizen savings account can help you in this mission.

What is a senior citizen savings account?

A senior citizen savings account is an account with added features that help senior citizens. For example, most banks offer doorstep banking for senior citizen accounts, making the whole banking process, from opening the account to maintaining the account, hassle-free.

Plus, it offers a safe place to park your retirement fund. The money you deposit in a bank account is in no way affected by economic and market factors, making it risk-free.

Benefits of a senior citizen savings account

The top benefits of a senior citizen savings account include:

  • Higher interest rates

Senior citizen savings accounts earn more interest than a traditional savings account. A senior citizen account is meant to park a more significant sum of money, sometimes the whole retirement fund. Hence, banks reward the same with a higher interest rate, although these accounts may have higher minimum and monthly average balance requirements.

  • Monthly interest credit

Most banks provide monthly interest credit with their senior citizen savings account. It is better than receiving interest quarterly or annually as it helps you manage your finances better. You could also invest in a way that you receive interest credits enough to carry out your monthly expenses with a lump sum being invested.

  • Convenient banking

Like other types of saving accounts, a senior citizen savings account is also a digital savings account. That means you can do banking online safely from the comfort of your home. But for seniors who prefer traditional banking, most banks offer doorstep services with a senior citizen account.

  • Easier to calculate returns

Investing your money in a bank account makes your investment planning easier as you will know the returns you will get overtime, regardless of the market conditions. Usually, a senior citizen savings account’s interest rates are more than the current interest rates of traditional accounts.

Additionally, you can use tools like a bank interest calculator to simplify your calculation and plan better.

  • Free insurance benefits

Most banks offer free insurance with their senior citizen savings account too. It could include personal accident insurance and health covers.

Retirement is meant for enjoyment, and nothing should affect your peace. A senior citizen savings account becomes an attractive choice as it offers safety and peace of mind.

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