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Can Pensioners Convert Their Savings Account or Need a Separate Account?
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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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Retirement planning is an important part of financial planning. This is a high-priority plan, which allows you to maintain your lifestyle even after retirement. As important retirement planning is, managing your post-retirement corpus before approaching retirement is just as crucial. You must ensure to shift all your accumulated retirement corpus towards a safe and secure financial instrument, which allows high liquidity. One such financial product is a senior citizen savings account.
However, as you already have a regular savings account, you may have a question if you can convert your regular savings account into a senior citizen bank account. The good news is, yes, you can convert your existing savings bank account into a senior citizen savings account. Doing so eliminates the hassle of managing multiple bank accounts. Read on to understand the benefits of a pensioner’s savings account.
The senior citizen savings account interest rate may be 0.25% to 0.50% higher than a regular bank account. Also, such savings bank accounts provide lucrative investment benefits on fixed deposits to senior citizens. Senior citizens usually earn 0.50% per annum more on fixed deposit interest rates than regular fixed deposit accounts. Over a long time, this can convert into a better incremental income than other financing options. By hitting on the open savings account online option for senior citizens, you get the benefit of higher interest income.
Post retirement, many may earn passive income through commission, rent, consultancy, etc. Storing your funds in the Kotak Grand Savings Account for senior citizens allows you to earn higher interest rates of up to 4%, which not just offers capital perseveration but also growth of your passive income over time. Also, the Kotak senior citizens account allows you to earn up to 1,500 reward points on purchases per month, which you can redeem across different categories like apparel, groceries, shopping, hotel, dining, etc.
Besides fixed deposits and recurring deposits, you can easily access various other investment options from your mobile app or net banking platform. These investment options and services include mutual funds, demat and trading accounts, exchange-traded funds, gold, etc.
Additionally, with this account, you can even access and manage all your financial investments on a single platform and even get monthly updates with record keeping.
Conclusion
A senior citizen savings bank account is a must-have account. This account acts as an important gateway to a comfortable, secure, and financially rewarding post-retirement life. So, if you have reached the age of 55, ensure to open a Kotak Grand savings account for continued financial stability and higher benefits than a regular savings account.
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