Bank deposits source of passive income for senior citizens

[niche]

In some countries, senior citizens who are not pensioners usually rely on bank deposits for income to pay all their expenses, when they cannot work. The interest rate on bank deposits varies depending on the period for which the deposit is kept with the bank, and in some cases, the banks are offering 6% annual interest. However, in a few cases, the bank may stop functioning, and depositors cannot access their funds. Also if inflation rate is very high, the interest income is not sufficient to meet expenses. Do senior citizens in your country rely on bank deposits for passive income, when they retire or do they use other investment options?

 

[Mika]

Fixed deposit bank accounts can be a great source of passive income, not just for seniors but also for young people and middle age people. Well, inflation can substantially reduce the value of the money you deposited in the bank, however, when inflation comes in you will investment will lose value in every sector not just your money in the bank but also in the stock market, real estate marketing, crypto market, etc. In my home country, you get up to 12 percent annual interest in your fixed deposit account for the term of at least 1 year. Some banks offer compound interest and offer you to double your money in 6 years. Technically speaking, you can earn $100,000 if you deposited at least $1000 for a period of 10 years (your earnings will be 10 X). Fixed deposit accounts are safer compared to the stock market or other areas of investment.