Fixed deposits are a commonly known name among Indian investors. These investment tools allow investors to yield high and assured returns without taking much risk. While any investor can benefit from investing in fixed deposits, senior citizens have a better advantage.
Senior citizen fixed deposits are designed to facilitate senior investors and offer them higher interest rates than regular investors. Many public and private sector banks and non-banking financial companies have included special fixed deposit interest rates for senior citizens.
Read on to learn about the best senior citizen FD interest rates for 2024. We will also enlist the salient features and benefits of these senior citizen investment tools.
Interest Rates of Senior Citizen FD
As of January 10, 2024, the following senior citizen FD rates are applicable for deposits of less than ₹ 2 crore.
Senior Citizens FD Interest Rates as Offered by Top Public Sector Banks
Public Sector Banks 1-year tenure 3-years tenure 5-years tenure Highest slab
State Bank of India 7.30 7.25 7.50 7.60
Bank of Baroda 7.35 7.75 7.15 7.75
Union Bank of India 7.25 7.00 7.00 7.75
Bank of India 7.00 7.25 6.75 7.75
Central Bank of India 7.25 7.00 6.75 7.65
Bank of Maharashtra 7.00 6.75 6.50 7.50
Indian Overseas Bank 7.30 7.00 7.00 7.60
Canara Bank 7.35 7.30 7.20 7.75
Indian Bank 6.60 6.75 6.75 7.75
Punjab & Sind Bank 6.90 6.50 6.50 7.90
Punjab National Bank 7.25 7.5 7 7.75
UCO Bank 6.75 6.8 6.7 7.55
| Public Sector Banks | 1-year tenure | 3-years tenure | 5-years tenure | Highest slab |
|---|---|---|---|---|
| State Bank of India | 7.30 | 7.25 | 7.50 | 7.60 |
| Bank of Baroda | 7.35 | 7.75 | 7.15 | 7.75 |
| Union Bank of India | 7.25 | 7.00 | 7.00 | 7.75 |
| Bank of India | 7.00 | 7.25 | 6.75 | 7.75 |
| Central Bank of India | 7.25 | 7.00 | 6.75 | 7.65 |
| Bank of Maharashtra | 7.00 | 6.75 | 6.50 | 7.50 |
| Indian Overseas Bank | 7.30 | 7.00 | 7.00 | 7.60 |
| Canara Bank | 7.35 | 7.30 | 7.20 | 7.75 |
| Indian Bank | 6.60 | 6.75 | 6.75 | 7.75 |
| Punjab & Sind Bank | 6.90 | 6.50 | 6.50 | 7.90 |
| Punjab National Bank | 7.25 | 7.5 | 7 | 7.75 |
| UCO Bank | 6.75 | 6.8 | 6.7 | 7.55 |
Senior Citizen Corporate FD Interest Rates as Offered by Top Corporations
Typically, FDs for senior citizens come with high interest rates. However, with corporate FDs, the interest rates are even higher for senior citizens.
Corporates Yearly Half-Yearly Quarterly Monthly On Maturity
Shriram Finance Ltd 8.13% 8.25% 8.08% 8.03% 8.13%
Bajaj Finance Ltd 7.65% 7.51% 7.44% 7.39% 7.65%
| Corporates | Yearly | Half-Yearly | Quarterly | Monthly | On Maturity |
|---|---|---|---|---|---|
| Shriram Finance Ltd | 8.13% | 8.25% | 8.08% | 8.03% | 8.13% |
| Bajaj Finance Ltd | 7.65% | 7.51% | 7.44% | 7.39% | 7.65% |
Senior Citizens FD Interest Rates as Offered by Top Private Sector Banks
| Banks | 1-year tenure | 3-years tenure | 5-years tenure | Highestslab |
|---|---|---|---|---|
| HDFC Bank | 7.1 | 7.5 | 7.5 | 7.75 |
| Axis Bank | 7.2 | 7.6 | 7.75 | 7.75 |
| ICICI Bank | 7.2 | 7.5 | 7.5 | 7.65 |
| DBS Bank | 6.75 | 7 | 7 | 8 |
| Federal Bank | 7.3 | 7.1 | 7.25 | 8 |
| City Union Bank | 7 | 6.75 | 6.5 | 7.5 |
| Kotak Mahindra Bank | 7.6 | 7.6 | 6.7 | 7.75 |
| DCB Bank | 7.65 | 8.5 | 7.9 | 8.6 |
| IDFC First Bank | 7 | 7.25 | 7.5 | 8 |
| Bandhan Bank | 7.75 | 7.75 | 6.6 | 8.35 |
| Dhanlaxmi Bank | 7.25 | 7 | 7.1 | 7.75 |
| IDBI Bank | 7.3 | 7 | 7 | 7.65 |
| J&K Bank | 7.6 | 7 | 7 | 7.6 |
| IndusInd Bank | 8.25 | 8 | 8 | 8.25 |
| RBL Bank | 8 | 8 | 7.6 | 8.5 |
| Karnataka Bank | 7.35 | 6.9 | 6.9 | 7.65 |
| Nainital Bank | 7.2 | 6.75 | 6.25 | 7.55 |
| Karur Vysya Bank | 7.4 | 7.4 | 6.9 | 8 |
| South Indian Bank | 7.2 | 7 | 6.5 | 7.9 |
| YES Bank | 7.75 | 8 | 8 | 8.25 |
| SBM Bank | 7.55 | 7.8 | 8.25 | 8.75 |
| Tamilnad Mercantile Bank | 7.5 | 7 | 7 | 7.5 |
Key Features of Senior Citizen FDs
An array of distinctive features characterises senior citizen fixed deposits.
Tenure
The tenure for senior citizen FDs can range between 7 days and 10 years.
Premature Withdrawal
Senior citizen FDs generally allow premature withdrawal that can provide support during a financial emergency. Note that there can be a fine or charge for premature withdrawal, and the amount can differ for different banks.
Loan Against FDs
Senior citizens can avail of a loan against their FD investment. Banks issue loans up to a particular percentage of the total investment amount. Since the FD acts as collateral, loans against them tend to have lower interest rates and amicable terms.
Automatic Renewals
Investors can withdraw the returns and re-invest or spend as they see fit after maturity. However, many banks process automatic renewal after maturity if no instructions have been provided by the investors beforehand.
Compound Interest
FDs for senior citizens can offer compound interest rates. In such a category, the FD is compounded at a fixed interval, and the interest rate is added to the principal amount, increasing further interest accumulation.
Benefits of Senior Citizen FD
Investment in a senior citizen FD will fetch you multiple benefits:
Low Risk and High Returns: Ideal for Senior Citizens
Senior investors mostly want a hassle-free and low-risk investment tool where they can get high returns. Senior citizen FDs check all the boxes.
The interest rates are higher than traditional interest rates. The returns are guaranteed.
Source of Regular Income
Senior citizens require a daily income to pay bills and sustain a comfortable lifestyle. FDs can offer regular payout on the accumulated interest.
Tax Implications on Senior Citizen FD
Section 80TTB of the IT Act allows senior citizens to claim a deduction of up to Rs 50,000 on interest income earned from fixed deposits as a deduction from gross total income before any tax is levied.
An FD with a tenure of 5 years is considered a tax-saving FD and is applicable for deductions of up to Rs. 1.5 lakh under section 80C.
Eligibility Criteria for Senior Citizen FD
Investors above 60 years of age are considered senior citizens and are, therefore, eligible for senior citizen FDs. Furthermore, investors above 80 are offered higher rates by selected banks.
Document Requirement for Senior Citizen FD
FD issuers will request the following documents to open a senior citizen FD account.
- PAN Card
- KYC Documents (Aadhar card, passport, driving licence, or voter ID)
- FD account opening application form
- Form 15H or self-declaration form
- Photographs (passport-size)
Invest in Senior Citizen Corporate FD with GoldenPi
Different types of investment tools offering different features are available in India. Providing investment tools with great benefits and easy monitoring has always been a major objective. Senior citizen FDs fulfil the same. Check out all the available FDs, compare their interest rates, explore their features, and make informed financial decisions with GoldenPi.
When you have selected the corporate FDs, gather the required document, decide on the tenure and payout, and invest in quick and easy steps on GoldenPi.
FAQs about Senior Citizen FD Interest Rates
Can I open a senior citizen FD for my parents?
You can get a senior citizen FD for your parents, provided they meet the age criteria. Select an FD, fill out the form using their details, and provide the requested documents.
Do senior citizen FDs have a nomination facility?
Yes, investors can nominate someone under the senior citizen FDs. You will have to fill out Form DA1 to avail of the nomination facility.
What is the minimum deposit amount in senior citizen FDs?
The minimum and maximum deposit amount can vary from one senior citizen FD to another. Some FD issuers allow investments of as low as ₹ 100.
Is KYC mandatory when investing in senior citizen fixed deposits?
If the investor is an existing customer, i.e., has an account with the bank issuing the FD, KYC is not required. However, KYC becomes mandatory when an investor is availing of the banking facilities for the first time.
Are senior citizen FDs insured?
Fixed deposits receive insurance cover of up to Rs. 5 lakhs by the Deposit Insurance and Credit Guarantee Corporation.
What is the penalty amount for premature withdrawal from senior citizen FDs?
Banks can levy different charges for premature withdrawal. It can go up to 2%.
Can a senior citizen and a person who is not a senior citizen open a joint fixed deposit account?
Yes, a senior citizen and a person who is not a senior citizen can open an FD account jointly. However, the primary account holder must be a senior citizen to get the benefits of a senior citizen FD.
