This bank is offering senior citizen FD rates if you are 60 when it matures
Premium- Unlike other banks, this bank will fix age of the FD account holder on the time of renewal
Bank FD (fixed deposit) interest rate is generally decided on the basis of age of the depositor at the time of FD account opening. However, Paytm Payments Bank has an offer that can attract depositors above 50 years of age. Paytm Bank will fix age of the depositor on the time of renewal. So, if a person deposits money in Paytm Payments Bank FD and turn 60 year old or above at the time of renewal, then the depositor will be eligible for senior citizen FD rates, means up to 0.5 per cent additional fixed deposit interest rate than any other bank. In fact, if the depositor redeems one's FD before maturity, there will be no penalty being levied by the Paytm Payments Bank as well.
As per the Paytm Payments Bank claims on its official website — paytmbank.com, "On renewal day if the customer has become a senior citizen or will become a senior citizen, we will auto renew the FD (Principal + Interest) under the senior citizen scheme and not under the scheme it was previously booked in."
MORE FROM THIS SECTIONSee All
So, if you are above 50 years of age and planning to open a bank FD account, Paytm Payments Bank can be a good option if you are looking for tax-free bank FD that will fetch higher fixed deposit interest rate. In fact the Paytm Bank FD is lucrative for all those depositors who are 50+ in age and want to invest in fixed deposit for tenure when they will turn a senior citizen at the time of maturity.
Other features of Paytm Payments Bank FD
1] You can redeem FD anytime and the principal amount redeemed plus interest less Tax Deduction at Source (TDS), if any, would be credited within few seconds.
2] In case your FD is closed prematurely, before completion of the minimum period of 7 days, no interest shall be paid for the said FD.
3] In Paytm Payments bank FD, no penalty is being levied in case of premature closure of the FD.
4] The Fixed Deposit will be automatically renewed on maturity. The rates and term of Fixed Deposit will be communicated by Paytm Payments Bank.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!