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Senior Citizen Fixed Deposit Rate

Fixed Deposits are one of the safest instruments available on the market today. Not only are they backed by the government, the interest rate is predefined and the FD carries minimum risk. There are many types of fixed interest deposits offered by banks across the country. One such lucrative option is a Senior Citizen Fixed Deposit. This product is specially designed for individuals who are 60 years and over. Also, a senior citizen FD offers a higher rate of interest in comparison to a normal FD.

Senior Citizens FD Interest Rates 2019

The best senior citizen FD rates for 2019 are:

Name of Bank1 - 5 years5 years or more
IDFC7.75% to 8.00%7.70%
Repco Bank7.50% to 7.75% 7.50%
Tamilnad Mercantile Bank6.75% to 7.50%7.40%
DCB Bank7.50% to 7.75%7.70%
Lakshmi Vilas Bank7.90% to 7.95%7.90%
Yes Bank7.71%7.71%
Deutsche Bank6.90% to 7.25%7.50%
Karur Vysya Bank6.75% to 7.00%7.00%
Punjab National Bank6.75% to 7.25%6.75%
Bandhan Bank6.40% to 7.85%7.15%
IDBI7.00% to 7.25%6.50%
IndusInd Bank6.65% to 7.00%6.65%

Note: The Interest rates mentioned above are subject to change and can be revised as per the bank’s discretion.

Top Bank Senior Citizen FD Rates in 2019

The top bank senior citizen FD rates for 2019 are:

Bank NameLess than 1 year1 - 5 years5 years or more
SBI6.25% to 6.90%6.90% to 7.25%7.25%
HDFC Bank4.00% to 6.75%6.25% to 7.00%6.00%
Canara Bank4.70% to 6.85%6.50% to 7.00%6.50%
ICICI Bank4.50% to 7.00%7.00% to 7.25%7.00%
HSBC Bank3.50% to 5.50%5.50% to 6.50%NA

Note: The Interest rates mentioned above are subject to change and can be revised as per the bank’s discretion.

Features of Senior Citizen Fixed Deposit

The features of Senior Citizen Fixed Deposit are:

  1. Offered by all public/private/nationalized banks.
  2. The FD comes in a tenure ranging from 7 days to 10 years.
  3. Comes with a high rate of interest.
  4. Ideal savings mechanism for retirement.
  5. Government backed, guaranteed returns.
  6. Can be opened online via net banking/mobile application.

Benefits of Senior Citizen Fixed Deposit

The benefits of Senior Citizen Fixed Deposit are:

  1. Safe and secure investment.
  2. Nomination facility is available.
  3. Option to receive interest at periodic intervals i.e. monthly, quarterly, half-yearly, yearly or on maturity with principal.
  4. You can make a premature withdrawal.
  5. You can avail a sweep-in facility.
  6. Acts as supplementary income post retirement.
  7. The senior citizen can also open a tax saver FD account. Under this account, they can avail tax benefits under Section 80C of the Income Tax Act, 1961.

Documents Required for Opening Senior Citizen FD

The following documents are required for opening a Senior Citizen FD:

  1. Age proof document
  2. Passport
  3. Aadhaar Card
  4. PAN card
  5. Photograph x 2 (passport size)

Eligibility for Opening a Senior Citizen FD

Following is the eligibility criteria for opening a Senior Citizen FD-

  1. You need to be above the age of 60 years.
  2. Some banks allow entry at the age of 55 years in case the senior citizen has already opted for retirement.
  3. NRI senior citizens too can open these FDs through NRE or NRO accounts.

FAQs on Senior Citizen Fixed Deposit Rates

Is interest on FD taxable for senior citizen?

Yes, if the interest earned exceeds Rs. 50,000, it will be subject to income tax.

Is senior citizen saving scheme tax free?

Yes, you can opt for a senior citizen FD which comes with a tax saving benefit. Under this scheme, the FD is locked for a minimum of 5 years.

What is the best investment for senior citizens?

There are multiple investment options for senior citizens such as PPF, ULPP, Pension Plan, SCSS and FDs. Each come with their own set of benefits.