Banking: Rajiv Anand

I am a senior citizen and always get the higher interest rate for fixed deposits. Now, I want to invest in a fixed deposit jointly with my minor granddaughter. Will I still get the higher rate of interest for this FD?

The interest on fixed deposits (FDs) is offered on the basis of the primary account holder, i.e., FD can earn higher interest rate in case the primary/first holder is a senior citizen. In an FD opened in the name of a minor, the account gets opened in 'self or minor operated by guardian' mode and therefore cannot have a joint account holder. Hence, the differential rate of interest offered to senior citizens will not be applicable on this FD.

I am due to retire in five years and my son has just started working. If we take a joint home loan, will we get a longer tenure? After my retirement, can he continue paying the Equated Monthly Instalments out of his salary and claim the tax benefits?

Some lenders do offer a longer tenure in this scenario, with a flexible repayment plan. The initial EMI will be higher when both of you are working and the EMI will reduce after your retirement. The loan will be processed in the joint name and both will have to meet the bank's lending norms. Your son can continue to pay the loan after your retirement and claim the tax benefits as applicable.

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in