Fixed Deposits are one of the most common investment options for Indians. It is safer as compared to investing in mutual funds, however, you get lower returns.
This page will discuss the best FD rates for senior citizens offered by top banks in the country.
Senior citizen FD rates are higher than those offered to the general public. Let us look at the interest rates offered by top banks -
| Name of the Bank | Up to 1 year | 1 to 3 years | 3 to 5 years | 5 years onwards |
|---|---|---|---|---|
|
4.00% - 6.75% |
7.30% - 7.50% |
7.25% |
7.50% |
|
|
4.75% - 6.75% |
7.60% - 7.75% |
7.15% |
7.50% |
|
|
4.00% - 6.75% |
7.35% |
7.30% |
7.20% |
|
|
3.30% - 7.05% |
6.10% - 6.70% |
6.25% |
6.10% |
|
|
3.50% - 5.75% |
6.50% - 6.75% |
6.50% |
6.50% |
|
|
4.00% - 5.75% |
6.80% - 6.90% |
6.50% |
6.50% |
|
|
3.15% - 5.75% |
6.80% - 7.00% |
6.70% |
6.60% |
|
|
3.25% - 7.25% |
7.00% |
7.00% |
7.00% |
|
|
3.30% - 6.00% |
6.70% - 6.80% |
6.50% |
6.75% |
|
|
3.00% - 6.25% |
7.25% - 7.30% |
7.25% |
6.75% |
|
|
4.00% - 6.75% |
7.25% - 7.50% |
7.00% |
6.75% |
|
|
3.50% - 6.50% |
7.20% - 7.60% |
7.60% |
7.75% |
|
|
3.50% - 6.50% |
7.10% - 7.50% |
7.50% |
7.50% |
|
|
3.50% - 6.50% |
7.20% - 7.50% |
7.50% |
7.50% |
|
|
3.50% - 6.25% |
7.00% - 7.75% |
7.50% |
7.50% |
|
|
IndusInd Bank |
4.00% - 7.00% |
7.75% - 8.25% |
7.75% |
7.75% |
|
3.50% - 6.75% |
7.30% - 7.50% |
7.00% |
6.75% |
|
|
3.25% - 7.00% |
7.60% - 7.65% |
7.60% |
6.70% |
|
|
5.75% - 7.00% |
7.00% - 7.25% |
7.75% |
7.10% |
|
|
3.75% - 6.85% |
7.75% - 8.00% |
— |
— |
|
|
3.75% - 5.25% |
7.75% - 8.35% |
7.75% |
6.60% |
|
|
4.00% - 7.80% |
7.40% - 8.00% |
7.40% |
6.65% |
|
|
5.00% - 6.75% |
6.75% - 7.25% |
6.50% |
6.50% |
|
|
2.50% - 6.50% |
7.50% - 7.75% |
7.00% |
7.00% |
|
|
3.00% - 7.00% |
8.00% |
7.00% |
7.50% |
|
|
3.50% - 6.50% |
7.30% - 7.55% |
7.50% |
7.25% |
|
|
4.00% - 6.50% |
7.05% - 7.50% |
7.00% |
7.00% |
|
|
3.90% - 6.90% |
7.50% - 6.90% |
6.90% |
6.20% |
|
|
3.75% - 6.50% |
7.75% - 7.50% |
7.25% |
7.25% |
Note: Rates are mentioned as of 22nd May 2024 and can be revised by the bank without any notice. Please check with the bank before opening an account.
There are many benefits of opening a fixed deposit scheme as a senior citizen. Some of them are mentioned below -
Most banks offer 0.40% to 0.50% higher interest rates to citizens who are above the age of 60. Super senior citizens over the age of 80 get a higher interest on their FDs in many banks.
Most of these offers are given for deposits under Rs.2 Crore. This does not apply to NRE/NRO category.
When you invest in fixed deposits, your money does not dapple in the market which keeps it safe. You get the promised percentage, regardless of the market condition.
Senior citizens can choose to get returns in a monthly income format giving them more peace and security in their retired years.
Senior citizens also can choose payout options as to when the interest is credited to them. They can choose whether they get paid monthly, quarterly, half-yearly or yearly. This gives them more control over their source of supplementary income.
As you know, fixed deposits are not tax free investment options. Even senior citizens have to pay taxes on the interest earned on their fixed deposit funds. The taxes are deducted at the source.
However, if you are not liable to pay any taxes, you can submit forms 15G or 15H to the banks to get the taxes refunded to you.
The eligibility rules for senior citizen FDs vary depending on the bank you choose. Usually, you need to have crossed 60 years of age on the day of opening the fixed deposit account. Some banks allow retired people over the age of 55 to open such accounts as well.
The documents required are very simple if you already have an account in the bank you want to open a fixed deposit account. If not, you have to submit your identity, age, and address proof.
Fixed deposits are safe and secure investment options to filfil short and long-term life goals. The interest you earn depends on the tenure, your age, and the amount you invest in bulk.
Most banks offer higher interest rates to senior citizens. Bandhan Bank offers up to 8.35% to senior citizen fixed deposits between 1-3 years.
State Bank of India offers different interest rates depending on the tenure you invest your money for. You can get from 4.00% to 6.75% for FDs of up to 1 year, up to 7.50% for FDs between 1 to 3 years. If you keep the money for 3 to 5 years and more than 5 years, you can get up to 7.25% and 7.50%, respectively.
There is no limit as to how much funds you can invest in a fixed deposit. But from the tax perspective, the limit for senior citizens is Rs.50,000 every financial year.
Super senior citizens over the age of 80 get higher interest rates on fixed deposits and can get up to 7.90% at Bank of India.
If you already have an account in the bank you want to open a fixed deposit account, you don’t have to submit any extra documents. However, you will need to submit your age proof to open a senior citizen fixed deposit account in a bank you don’t have a prior relationship with.
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