'Although the bank FDs offer a higher rate to senior citizen, it is only marginal higher than their base rate.
When it comes to FDs, many banks offer marginally better rates to senior citizen investors. That is why an investor looking to play safe generally prefers an FD over other instruments. Bank FDs or bank fixed deposits, on the other hand, guarantee a fixed interest rate irrespective of market uncertainties. Market-linked instruments such as stocks and equity funds may be attractive for many but they are unable to offer fixed returns, say financial experts.
Traditionally a choice of investors with a low-risk appetite, bank FDs offer a safe source of investment unlike their equity-related peers. Bank FDs or bank fixed deposits have been a favourite instrument to park surplus money for many investors.
