Of all the investment avenues, a fixed deposit still remains the most favorite of people belonging to almost all the age groups in India, especially senior citizens. The senior citizens fixed deposit interest rates provided in India remain one of the main reasons along with the security and guaranteed returns it provides without any risk. Also, the account opening process for any FD is very simple in any of the banks or NBFCs (Non-Banking Financial Companies).
Usually, senior citizens are privileged with an extra interest rate of around 0.50%-0.65% depending on the bank. One can also choose the frequency of the interest payouts and benefit from the high stability of the FD investment and track your investments easily.
In this article
Key Features and Benefits of Senior Citizen FDs
Attractive and higher senior citizen FD interest rates: The interest rates for senior citizens are also offered under these schemes are decided based on the duration of the term deposit.
Guaranteed returns: The returns are always the same irrespective of the inflation or current market scenario
Safe and secure investment: As banks are regulated by RBI, your hard-earned money will be safe once you have invested in senior citizen fixed deposit
Periodic interest payout option: As mentioned earlier, one can choose the frequency of the interest payout options from either monthly, quarterly, or yearly.
Online booking via net banking: One of the benefits of FDs is the easy account opening process, i.e. online account opening process is also available. If you are a customer of the bank then well and a and even if you are not an existing customer, you can fill the account opening query on a bank’s website and a representative will get back to you.
Additional Facilities: Be it senior citizen or any other FD, Premature withdrawal, nomination, loan, and sweep-in facility are provided by all the banks on all the FDs
Limit for Deposits: The limits for the FD deposit amount that can be deposited under these schemes can range from Rs. 1 crore to even higher amounts. These limits are decided by banks and may vary from one bank to the next.
Some of these deposits can even be tax saver fixed deposits that have a lock-in period of 5 years and still offer the special FD interest rates for senior citizens.
Senior Citizen Fixed Deposit Interest Rates Comparison
|Bank||Senior Citizen FD Rates (minimum to maximum)|
|SBI Fixed Deposit||3.40% – 6.20%|
|Axis Bank||3.25% – 6.45%|
|ICICI Bank Fixed Deposit||3.25% – 6.00%|
|HDFC Bank Fixed Deposit||3.25% – 6.00%|
|IDFC First Bank||4.50% – 7.75%|
|Kotak Bank||3.50% – 5.90%|
|ICICI Home Finance||7.10% – 7.35%|
|Citibank||3.25% – 4.50%|
|Indian Overseas Bank||5.25% – 6.45%|
|IDBI Bank||3.50% – 6.40%|
|Bank of Baroda||3.40% – 5.80%|
|Indian Bank||3.55% – 6.00%|
|OBC||3.75% – 6.00%|
|Andhra Bank||4.00% – 5.95%|
|Bank of India||4.00% – 6.15%|
|PNB Housing Finance||7.45% – 8.00%|
|Allahabad Bank||3.55% – 6.00%|
|PNB||3.75% – 6.00%|
|HDFC||7.13% – 7.13%|
|Bank of Maharashtra||3.50% – 5.75%|
|Canara Bank||3.50% – 6.00%|
|Central Bank of India||3.90% – 5.85%|
|Punjab and Sind Bank||4.00% – 6.05%|
|UCO Bank||3.90% – 6.00%|
|Union Bank of India||4.00% – 5.95%|
|United Bank of India||3.75% – 6.00%|
|Lakshmi Vilas Bank||4.00% – 7.25%|
|Equitas Small Finance Bank||4.20% – 7.95%|
|Jana Small Finance Bank||5.60% – 9.20%|
|DHFL||9.00% – 9.75%|
|Karnataka Bank||4.00% – 6.25%|
|DBS Bank||3.45% – 5.50%|
|Jammu And Kashmir Bank||3.75% – 6.00%|
|Ujjivan Small Finance Bank||4.00% – 7.45%|
|Fincare Small Finance Bank||4.50% – 8.25%|
|Karur Vysya Bank||3.50% – 6.50%|
|Yes Bank||5.50% – 7.75%|
|Syndicate Bank||3.50% – 6.00%|
|Standard Chartered Bank||4.25% – 6.30%|
|Dhan Laxmi Bank||4.00% – 6.75%|
|Bajaj Finance||7.65% – 7.85%|
|LIC Housing Finance||7.75% – 7.85%|
|Federal Bank||4.00% – 6.35%|
|AU Small Finance Bank||4.50% – 7.75%|
|Corporation Bank||4.00% – 5.95%|
|IndusInd Bank||4.50% – 7.50%|
|ESAF Small Finance Bank||5.50% – 8.00%|
|RBL Bank||5.50% – 8.00%|
|HSBC Bank||2.75% – 5.25%|
|DCB Bank||5.50% – 7.85%|
|South Indian Bank||4.25% – 6.65%|
|Bandhan Bank||4.00% – 9.85%|
Senior Citizen FD Eligibility
A senior citizen fixed deposit can be opened by a resident of India. However, NRI senior citizens too can open these FDs with the help of NRE or NRO accounts. You also need to be above the age of 60 years at the time of booking the fixed deposit.
Some banks also allow customers who are more than 55 years and have taken early or voluntary retirement to apply for this type of FD scheme. This rule may differ from bank to bank and are subject to certain terms and conditions.
Taxation on Senior Citizen FDs
The fixed deposit rates for senior citizens earned on these schemes may be liable for the required income tax based on the applicable laws. However, if there are any taxes to be deducted, it will be deducted at the source; in case you are not liable to pay taxes, you can submit forms 15G or 15H to the bank.
If the term deposit is an NRE (Non-Residential External) deposit, then it may not be liable for taxes however in the case of NRO (Non- Resident Ordinary) and FCNR (Foreign Currency Non-Resident Account) deposits interest earned may be liable for taxes.
How to open a Senior Citizen Fixed Deposit Account?
Most of the banks accept online FD account opening form submissions where individuals can fill and submit their FD account opening form online. The amount of the deposit is usually deducted from the applicant’s preferred savings bank account.
Senior Citizen FD rates – FAQs
Ques. Which bank provides the maximum senior citizen FD interest rate?
Ans. Currently, the highest senior citizen fixed deposit rate is 9.50% which is offered by Fincare Small Finance Bank.
Ques. Are fixed deposit investments taxable for senior citizens?
Ans. Yes. If the interest earned from an FD in a financial year (1st April to 31st March) exceeds Rs. 50,000, TDS is charged at 10%
Ques. Who is referred to as a senior citizen?
Ans. Any individual who has attained 60 years of age or more is legally termed as a senior citizen.