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Senior Citizen Fixed Deposit Rate

Senior Citizen offers attractive fixed deposit rates. Fixed deposits can be opened online or by visiting the nearest branch. Senior Citizen Fixed deposit rates vary with the amount invested and the tenure. The rates are also different for non-withdrawable deposits and recurring fixed deposits.

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Senior Citizen FD Rates

Fixed Deposits (FDs) are a reliable investment choice for individuals seeking stable returns with minimal risk. For senior citizens, these investment vehicles are hugely beneficial, offering a means to safeguard their hard-earned savings while enjoying attractive interest rates. Read on to know more about the Senior Citizen FD rates from banks and NBFCs.

Range of Senior Citizen FD Rates

Banks and Non-Banking Financial Companies (NBFCs) present a spectrum of FD interest rates for senior citizens, spanning from 2.50% to 9.50% per annum (p.a.). The tenures on offer are equally varied to accommodate a range of financial goals. Short tenures as low as 7 days to extended 10-year tenures are available with these organizations.

However, it's the additional interest rates that truly set senior citizen FDs apart: most banks and NBFCs grant an extra interest rate of 50 basis points (bps) above the regular fixed deposit interest rates for resident senior citizen FD depositors, ensuring that retirees residing within the country are rewarded for their investment choice.

Key Senior Citizen FD Features

Senior Citizen FDs offer several noteworthy features that contribute to their attractiveness:

Flexible Deposit Amounts: minimum deposit amount of Rs 100 and no upper limit.
Diverse Tenure Options: Ranging from as short as 7 days to as long as 10 years.
Interest Payout Options: various interest payout choices, including monthly, quarterly, half-yearly, and annual pay-outs. Alternatively, the cumulative FD option ensures compounding, fostering the potential for higher returns over time.
Partial or Premature Withdrawal: Some FDs permit partial or premature withdrawals with a penal rate (up to 2%) on the applicable interest rate. Non-callable fixed deposits do not offer this feature.
Automatic Renewal: Banks facilitate an automatic renewal feature, ensuring that the fixed deposit account is seamlessly renewed upon maturity, allowing seniors to continue enjoying the benefits of their investment.
DICGC Security: The security net of the Deposit Insurance and Credit Guarantee Corporation (DICGC) covers fixed deposits up to Rs. 5 lakhs, providing added assurance to senior citizens.

Public Sector Bank Rates

Public sector banks offer competitive senior citizen FD Interest rates. The below tables summarizes the rates offered by select public sector banks for various tenures:

Bank Name	Interest Rates (% p.a.) - Highest slab	Interest Rates (% p.a.) - 1-year
Bank of Baroda	7.75	7.25
Bank of India	7.75	6.50
Bank of Maharashtra	7.50	6.85
Canara Bank	7.75	7.40
Central Bank of India	7.65	7.25
Indian Bank	7.75	6.60
Indian Overseas Bank	7.75	7.00
Punjab National Bank	7.75	7.25
Punjab & Sind Bank	7.85	6.90
State Bank of India	7.60	7.30
UCO Bank	7.55	6.75
Union Bank of India	7.50	6.80

Bank Name	Interest Rates (% p.a.) - 3-years	Interest Rates (% p.a.) - 5-years
Bank of Baroda	7.55	7.15
Bank of India	7.25	6.75
Bank of Maharashtra	6.50	6.25
Canara Bank	7.30	7.20
Central Bank of India	7.00	6.75
Indian Bank	6.75	6.75
Indian Overseas Bank	7.00	7.00
Punjab National Bank	7.50	7.00
Punjab & Sind Bank	6.75	6.75
State Bank of India	7.00	7.50
UCO Bank	6.80	6.70
Union Bank of India	7.00	7.20

Top Private Sector Banks Offering the Highest FD Interest Rates for Senior Citizens

Private sector banks also offer competitive interest rates for senior citizens. See the tables below for rates for different tenure options:

Bank Name	Interest Rates (% p.a.) - Highest slab	Interest Rates (% p.a.) - 1-year
Axis Bank	8.05	7.50
Bandhan Bank	8.35	7.75
City Union Bank	7.50	7.00
DBS Bank	8.00	6.75
DCB Bank	8.50	7.75
Dhanlaxmi Bank	7.75	7.25
Federal Bank	8.07	7.30
HDFC Bank	7.75	7.10
ICICI Bank	7.60	.20
IDBI Bank	7.65	7.30
IDFC First Bank	8.00	7.00
IndusInd Bank	8.25	8.25
J&K Bank	7.60	7.60
Karnataka Bank	7.70	7.40
Kotak Mahindra Bank	7.70	7.60
Karur Vysya Bank	7.70	7.40
Nainital Bank	7.55	7.20
RBL Bank	8.30	7.50
SBM Bank	8.65	6.75
South Indian Bank	7.50	7.10
Tamilnad Mercantile Bank	7.50	7.50
YES Bank	8.25	8.00

Bank Name	Interest Rates (% p.a.) - 3-years	Interest Rates (% p.a.) - 5-years
Axis Bank	7.75	7.75
Bandhan Bank	7.75	6.60
City Union Bank	6.75	6.50
DBS Bank	7.00	7.00
DCB Bank	8.50	8.00
Dhanlaxmi Bank	7.00	7.10
Federal Bank	7.10	7.25
HDFC Bank	7.50	7.50
ICICI Bank	7.50	7.50
IDBI Bank	7.00	7.00
IDFC First Bank	7.25	7.50
IndusInd Bank	8.00	8.00
J&K Bank	7.00	7.00
Karnataka Bank	6.90	6.90
Kotak Mahindra Bank	7.00	6.70
Karur Vysya Bank	7.40	6.65
Nainital Bank	6.75	6.25
RBL Bank	7.60	7.60
SBM Bank	8.65	8.25
South Indian Bank	7.00	6.50
Tamilnad Mercantile Bank	7.00	7.00
YES Bank	8.00	8.00

Exemplary Rates from Small Finance Banks

Small finance banks offer competitive senior citizen FD rates that rival those of larger institutions. See the tables below on different tenures:

Bank Name	Interest Rates (% p.a.) - Highest slab	Interest Rates (% p.a.) - 1-year
Small Finance Bank	8.50	7.25
Capital Small Finance Bank	8.25	7.80
Equitas Small Finance Bank	9.00	8.70
ESAF Small Finance Bank	9.00	6.50
Fincare Small Finance Bank	9.11	8.10
Jana Small Finance Bank	9.00	8.50
North East Small Finance Bank	9.25	7.25
Shivalik Small Finance Bank	8.50	8.00
Suryoday Small Finance Bank	9.10	7.35
Ujjivan Small Finance Bank	8.75	8.75
Unity Small Finance Bank	9.50	7.85
Utkarsh Small Finance Bank	8.85	8.35

Bank Name	Interest Rates (% p.a.) - 3-years	Interest Rates (% p.a.) - 5-years
AU Small Finance Bank	8.50	7.75
Capital Small Finance Bank	7.80	7.75
Equitas Small Finance Bank	8.50	7.75
ESAF Small Finance Bank	7.25	6.75
Fincare Small Finance Bank	8.60	8.60
Jana Small Finance Bank	9.00	7.75
North East Small Finance Bank	8.00	7.25
Shivalik Small Finance Bank	8.50	7.50
Suryoday Small Finance Bank	9.10	8.75
Ujjivan Small Finance Bank	7.70	7.70
Unity Small Finance Bank	8.15	8.75
Utkarsh Small Finance Bank	8.85	8.10

Special Schemes for Senior Citizens

Beyond the standard rates, some institutions provide even more attractive rates under special FD schemes. These schemes often come with predefined tenures, offering senior citizens the potential for higher returns in exchange for committing to specific investment durations. These additional rates, ranging from 20 to 50 bps, can significantly bolster the earnings of retirees seeking stability and growth.

1. SBI Wecare Fixed Deposit Scheme: this scheme grants an additional premium of 50 bps on FDs with tenures of '5 years and above.'

2. HDFC Senior Citizen Care FD: HDFC Bank's scheme offers an extra 25 bps premium to senior citizen FD on tenures ranging from 5 years 1 day to 10 years, for deposits less than Rs 5 crores. This scheme is valid till 7 November 2023.

3. ICICI Bank Golden Years: Senior citizens investing with ICICI Bank enjoy an additional interest rate of 10 bps on tenures spanning 5 years and 1 day to 10 years, for deposits below Rs 2 crore.

Conclusion

Senior Citizen Fixed Deposits provides senior citizens with a strategic avenue to secure their finances and enjoy attractive interest rates. The spectrum of offerings from various banks and NBFCs ensures that retirees can select the option that aligns with their financial goals and preferences. With special schemes adding an extra layer of appeal and the flexibility to choose tenure, interest payout, and more, these FDs cater to the unique requirements of senior citizens.

FAQs on senior citizen FD rates:

1. Who is eligible to open a senior citizen fixed deposit account?

Individuals aged 60 years and above are eligible to open senior citizens’ fixed deposit accounts and avail of the additional interest rates provided by top banks. Age proof and other necessary documents are required during the application process.

2. Which bank offers the most competitive interest rates for senior citizens?

Suryoday Small Finance Bank stands as a leader, offering the highest FD interest rate of 9.60% p.a. Unity Small Finance Bank follows closely with an interest rate of 9.50% p.a.

3. Are fixed deposit investments taxable for senior citizens?

Yes, if the interest earned in a financial year (from April 1 to March 31) exceeds Rs. 50,000, a Tax Deducted at Source (TDS) of 10% is applicable. In addition, the interest is considered as income and is taxed according to existing income tax slabs.