A reliable source of income and capital security, fixed deposits (FDs) are a wise financial choice, particularly for older investors who need consistent returns. Because of its safety, consistent returns, and the greatest fixed deposit rates for older adults, this product is quite popular. With its characteristics, senior citizen FDs are a product that appeals to people who want a steady income after retirement. Senior citizens are eligible for preferential fixed deposit rates, often higher than those offered to general depositors. Seniors can increase the growth of their savings at a higher rate with senior citizen FD rates without having to take on more risks. Their savings will increase more quickly thanks to the increased interest rate, helping them to beat inflation and preserve their purchasing power after retirement.Also read: FD interest rate up to 8.1%: Top banks offering highest interest rates on 1-3 year fixed deposit tenures The potential risk of putting all of the money in one FD at a fixed rate is reduced when investors use FD laddering to distribute their investments over a number of tenures and FD rates. You may reserve many FD accounts for terms varying from seven days to ten years, all while protecting your money.Also read: SBI vs HDFC Bank vs IDBI Bank: Check last date to invest in special FDs with higher interest rates Compared to investing in a single long-term FD, you can earn greater returns by spreading your money over several schemes with varying tenures and FD rates. Furthermore, you have the option to reinvest both the principle amount and interest income upon maturity to take advantage of the compounding effect and earn even larger profits. Investing in many FDs with different maturities might let investors keep more cash on hand. In this manner, one can benefit from a maturing FD rather than having to liquidate a continuing one in the event of a financial need.Investment IdeasStock Report PlusePaperWealth EditionView all Stories