With an increase in life expectancy there is a steady rise in India's senior citizen population. While this is a positive sign as far as human health in general is concerned, the soaring costs and living expenses are a matter of great concern, especially for senior citizens with limited or little source of income, post-retirement.It is therefore important for senior citizens to choose the right savings bank account to suit their needs. There are key features one must look out for while opening a savings account that can cater to the specific requirements of senior citizens.
The first step for your is - check is the eligibility criteria for a senior citizen savings account. Most banks allow Indian residents above 60 to open senior citizen savings accounts that often have added benefits like preferential interest rates and fee waivers. You should also look out for an account which offers a simple account opening process and requires minimum documentation. Usually a few basic documents Aadhaar card and PAN card are asked for, as proofs of address, identity and age to fulfill the KYC requirements .
Interest rates
This is one of the most important features to help to earn more on your savings. Interest rates offered on senior citizen savings accounts are usually higher than regular savings accounts. As per RBI guidelines, banks must offer an interest rate of at least 4% per annum on these accounts. However, some banks offer higher interest rates to attract senior customers. IDFC FIRST Bank offers one of the highest interest rates on their Senior Citizen Savings Account. Interest is calculated on a daily product basis and credited to the account monthly.
Doorstep banking facility
Moving around can become difficult for senior citizens. Look for banks that offer doorstep banking and pick-up/drop facilities for basic transactions like cash deposits, cheque pickups, filling application forms etc. IDFC FIRST Bank provides Doorstep bankingservice free of cost to senior citizen customers for their convenience.
Waivers on fees
Fees associated with Savings Account services can significantly impact the overall banking experience. IDFC FIRST Bank, prioritize senior citizen customers by waiving off fees for commonly used services on their Savings Accounts, provided they maintain the average monthly balance. This ensures a hassle-free and seamless banking journey.
Additional benefits
Some banks provide good value-adds to senior citizens like preferential rates on fixed/recurring deposits, complimentary cyber insurance, priority treatment at branches, insurance coverage and complimentary health benefits. IDFC FIRST Bank offers Rs. 35 lakhs free personal accident insurance coverage along with a complimentary MediBuddy health membership with Free Unlimited Online General Physician Consultation for complete family (up to 4 people), Discounts in pharmacies and health check-upsvalid for 1 year to all new senior citizen accounts.
Debit cards
A debit card comes in handy for withdrawals and payments. Look for senior citizen debit card options with higher daily transaction limits suitable for medical and other big-ticket expenses. IDFC FIRST Bank issues a Visa Signature Platinum debit card with a Rs. 25,000 monthly average balance that offers a Rs. 6 lakh daily purchase limit and Rs. 2 lakh daily ATM withdrawal limit.
Digital banking
IDFC FIRST Bank's Senior Citizen Savings Account is a comprehensive offering specially tailored for senior customers. Apart from industry-leading interest rates, it provides benefits like monthly interest credit, doorstep banking, preferential fixed deposit rates, higher debit card limits, personal accident cover of Rs. 35 lakhs and priority banking. The bank's mobile app and digital services are easily navigable for senior citizens as well.
Terms and conditions
Check all terms and conditions carefully regarding the interest calculation method, lock-in periods if any for partial/full withdrawals and charges applicable. Most banks levy a penalty for premature closure within 1-2 years. Monthly/quarterly statement options must also be explored depending on one's requirements.
Branch locations
While choosing an account, also consider the bank's network strength for easy access to branches/ATMs across India, especially locations frequented by senior citizens for stay or leisure. IDFC FIRST Bank has a widespread network of over 800 branches across the country.
Availability of account statements
Request regular paper as well as e-mail/SMS alerts of transactions for independent verification and records. Virtual statement access through net banking/mobile banking should also be enabled.
Requisite documents Carry Original PAN Card and Officially Valid Document (OVDs)during account opening as per KYC norms. Also, keep scanned copies of other mandatory documents like nominee details/PAN card ready for smooth onboarding.
To sum up:
Interest rates, basic fee waivers, insurance benefits, convenient banking channels and customer service standards are some key factors to consider while choosing an appropriate senior citizen savings account. A suitable mix of financial and non-financial features customized for retirees can help them manage their finances well during post-work life. IDFC FIRST Bank offers a comprehensive senior citizen scheme covering the most essential requirements.
Disclaimer: *IDFC FIRST Bank offers Zero Fee Banking on Rs 10,000 Average Monthly Balance (AMB) Savings Account and higher account variants, subject to maintenance of AMB in the account.
These services are being offered free in good faith, and in case of abuse, the bank reserves the right to charge fees as per market norms. All rights reserved.
Disclaimer: This content is part of a marketing initiative. No TNIE Group journalists were involved in the creation of this content.