Top Banks Senior Citizen FD Interest Rates

What is Senior Citizen FD?

One of the most popular investment options is a fixed deposit as it's a secure investment with guaranteed earnings. With Senior Citizen Fixed Deposit plans, senior citizens can benefit from somewhat greater interest rates than regular citizens. Tenure is one of the most crucial criteria, but there are numerous other elements that affect older persons' FD interest rates.

Senior citizens often receive higher fixed deposit (FD) interest rates than regular account holders. Many banks offer special senior citizen FD rates to encourage savings, typically providing an additional 0.5% or more over standard rates. This makes FD for senior citizens an attractive, low-risk investment option for those looking to grow their savings with guaranteed returns.

FD Rates for Senior Citizens

Data as of 17 October 2024

Overview of Top Banks FD Rates

Here’s a brief overview of each bank's FD rates based on the data:

1. Bank of Baroda

Offering a high slab of 7.8% for FDs, Bank of Baroda provides competitive rates across various tenures. Its 1-year rate is 7.35%, while the 3- and 5-year rates stand at 7.65% and 7.4%, respectively, making it a reliable choice for medium-term investments.

2. Bank of India

With an attractive highest slab of 7.8%, Bank of India’s FD rates vary across tenures. It offers 7.3% for 1 year, 7.25% for 3 years, and 6.75% for 5 years. It's a solid option for investors looking for short- to medium-term deposits.

3. Bank of Maharashtra

Offering up to 7.6% for its highest slab, Bank of Maharashtra’s FD rates remain steady, with 7.25% for 1 year and 7% for both 3- and 5-year tenures. This makes it a safe, steady option for those looking at consistent returns.

4. Canara Bank

Canara Bank offers competitive FD rates with a highest slab of 7.75%. Its 1-year FD rate is 7.35%, while the 3-year rate is 7.3%, and the 5-year rate is 7.2%, making it an appealing choice for medium-term investments.

5. Central Bank of India

The Central Bank of India offers an appealing highest FD rate of 7.95%. For 1 year, it provides 7.25%, while 3-year and 5-year tenures see slightly lower rates of 7% and 6.75%. A good option for shorter-term deposits.

6. Indian Bank

With a highest slab of 7.75%, Indian Bank offers a 1-year rate of 6.6%, 6.75% for 3 years, and 6.75% for 5 years. It’s a stable option for conservative investors preferring government-owned banks for long-term deposits.

7. Indian Overseas Bank

Indian Overseas Bank offers FD rates up to 7.8%, with a 1-year rate of 7.4%. Its 3- and 5-year tenures offer lower rates of 7% each, making it ideal for shorter-term deposits with a slight focus on flexibility.

8. Punjab National Bank

With a competitive highest slab of 7.75%, PNB provides a 1-year FD rate of 7.3%, 7.5% for 3 years, and 7% for 5 years, making it suitable for those seeking steady returns across various investment periods.

9. Punjab & Sind Bank

Offering a maximum FD rate of 7.8%, Punjab & Sind Bank has lower rates for longer terms: 6.8% for 1 year, and 6.5% for both 3- and 5-year tenures. It’s ideal for short-term, risk-averse investors.

10. State Bank of India

SBI, one of India's largest banks, offers competitive FD rates, with a highest slab of 7.75%. Its 1-year rate is 7.3%, 3-year at 7.25%, and 5-year at 7.5%, making it a popular option for secure long-term savings.

11. UCO Bank

UCO Bank’s highest FD rate is 7.55%, with a lower rate of 6.75% for 1 year and 6.8% for 3 years. Its 5-year rate is 6.7%, offering solid returns for mid-term investors looking for safe deposit options.

12. Union Bank of India

Union Bank offers a competitive highest slab of 7.9%, with a steady 7.25% for 1-year tenures. For 3- and 5-year periods, the rates remain lower at 7%, making it a good choice for conservative investors with short-term goals.

13. Axis Bank

Axis Bank offers FDs with a maximum interest rate of 7.75%, while its 1-year rate is 7.2%. The 3-year rate stands at 7.6%, and the 5-year rate at 7.75%, providing an excellent option for medium- to long-term deposits.

14. Bandhan Bank

Bandhan Bank offers the highest FD rate at 8.55%. Its 1-year rate is the same, but for 3 and 5 years, the rates are slightly lower at 7.75% and 6.6%, respectively. This makes Bandhan a strong choice for short-term investments.

15. City Union Bank

City Union Bank offers a top FD rate of 7.5%, with lower rates of 7% for 1 year, 6.75% for 3 years, and 6.5% for 5 years. This bank provides steady, though not the highest, returns for conservative investors.

16. DBS Bank

DBS Bank offers competitive FD rates with a highest slab of 8%. For 1-year deposits, the rate is 7.5%, and for 3- and 5-year deposits, it's 7% each. A good choice for those looking for consistent returns across the board.

17. DCB Bank

DCB Bank offers a lucrative highest FD rate of 8.55%, with a 1-year rate of 7.6%. For 3 years, the rate rises to 8.05%, and for 5 years it stands at 7.9%, making it an attractive choice for long-term investments.

18. Dhanlaxmi Bank

Dhanlaxmi Bank offers a highest slab of 7.75%, with steady rates for longer tenures: 7.25% for 1 year, 7% for 3 years, and 7.1% for 5 years. It’s a good option for short- to medium-term investments.

19. Federal Bank

Federal Bank provides a competitive highest slab of 7.75%, offering 7.3% for 1 year and 7.5% for 3- and 5-year tenures. It's an excellent choice for conservative investors seeking stable, long-term growth.

20. HDFC Bank

HDFC Bank offers a competitive highest slab of 7.9%, with a 1-year rate of 7.1%, and 7.5% for both 3 and 5 years. It is a popular choice for safe, long-term deposits with a well-established reputation.

21. ICICI Bank

ICICI Bank offers a maximum FD rate of 7.75%, with 1-year rates at 7.2% and 7.5% for both 3 and 5-year tenures. It's a strong option for secure long-term investments with competitive returns.

22. IDBI Bank

IDBI Bank offers a competitive highest slab of 7.75%, with a steady 1-year rate of 7.3%. For longer tenures, its 3-year rate is 7%, while 5-year tenures remain the same at 7%, making it a good choice for consistent returns.

23. IDFC First Bank

IDFC First Bank offers an attractive highest slab of 8.25%, though its 1-year rate is 7%. For 3 years, it offers 7.3%, and for 5 years, 7.25%, making it a good option for medium- to long-term savings.

24. IndusInd Bank

IndusInd Bank’s highest FD slab is 8.25%. For 1-year tenures, it matches this at 8.25%, while its 3- and 5-year rates are slightly lower at 7.5% and 7%, making it a favorable option for short- to medium-term deposits.

25. J&K Bank 

J&K Bank offers a highest FD rate of 7.6%, with 1-year deposits earning 7.6%. For 3- and 5-year tenures, the rate drops to 7%, making it a steady choice for medium- to long-term conservative investments.
 

26. Karnataka Bank 

Karnataka Bank offers competitive FD rates, with a highest slab of 8%. Its 1-year rate is 7.85%, while 3- and 5-year deposits offer 7%. This is ideal for short- to medium-term investments with attractive returns.
 

27. Kotak Mahindra Bank 

Kotak Mahindra Bank offers a highest FD rate of 7.9%, with 1- and 3-year tenures offering 7.6%, while the 5-year rate is lower at 6.7%. It’s an attractive choice for short-term savings with competitive returns.
 

28. Karur Vysya Bank 

Karur Vysya Bank offers an 8% highest slab for FDs, with a 1-year rate of 7.4%. For 3- and 5-year tenures, the rate remains at 7.4%, making it a strong choice for stable long-term deposits.
 

29. Nainital Bank 

Nainital Bank’s highest slab is 7.55%, with a 1-year rate of 7.2%. Its 3- and 5-year tenures offer lower rates of 6.75% and 6.25%, respectively, making it a decent choice for short-term conservative investors.

Benefits of Senior Citizen FD

The following are the main advantages of making investments in senior citizen fixed deposit plans:

• Low Risk: FDs are regarded as the safest and most dependable type of investment for older adults. Furthermore, the returns on fixed deposits remain unaffected by changes in the market.
• Guaranteed Return with Complete Security: Since a fixed deposit is not correlated with the market, it is not impacted by market fluctuations, making it an excellent investment option for seniors. You know what to expect from your investment because the FD interest rates don't change over the tenor.
• Advantage of Interest: Seniors can choose from a range of interest payment options. Monthly, quarterly, half-yearly, or annual FD interest is paid to the depositor's savings account.
• Convert into a Monthly Income: An elderly person can effortlessly arrange their retirement years by using the interest they have accrued on their fixed deposits as a monthly income.

Residents who are 60 years of age or older can reserve FD at discounted interest rates. Moreover, super elderly folks 80 years of age and older may qualify for special interest rates from some banks and NBFCs. For example, super senior citizens can receive an extra 0.75% interest rate on their fixed deposits from Indian Overseas Bank, Indian Bank, Union Bank of India, and RBL Bank. Additionally, super senior FD depositors might receive an extra 0.80% p.a. in interest rates from Punjab National Bank.

Eligibility for Senior Citizen Fixed Deposit

Residents who are 60 years of age or older can reserve FD at discounted interest rates. Moreover, super elderly folks 80 years of age and older may qualify for special interest rates from some banks and NBFCs. For example, super senior citizens can receive an extra 0.75% interest rate on their fixed deposits from Indian Overseas Bank, Indian Bank, Union Bank of India, and RBL Bank. Additionally, super senior FD depositors might receive an extra 0.80% p.a. in interest rates from Punjab National Bank.

Documents Required for Opening Senior Citizen FD Account

A depositor can start a fixed deposit account (FD) at the same bank where they currently have a current account or savings account by visiting the office with the necessary paperwork, or they can open one immediately by logging on to net banking or mobile banking.

In accordance with KYC (Know Your Customer) regulations, the concerned depositor must visit the bank branch with the requisite documentation if they are not already a customer.

1. Address Proof:

• Passport
• Telephone bill
• Electricity bill
• Bank Statement with Cheque
• Certificate/ID card issued by the Post Office

2. Identity Proof:

• Senior citizen ID card
• Passport
• PAN card
• Voter ID card
• Driving licence
• Photo ration card

Taxation under Senior Citizen FD

Section 80TTB of the Income Tax Act permits senior persons to deduct interest income from these companies up to a cumulative amount of ₹50,000 from their gross total income prior to taxation:

• Interest income on fixed and savings accounts at banks
• Interest on post office deposits
• Interest on deposits held by cooperative societies that carry on banking operations, which includes a bank for land development and cooperative land mortgage.

Additionally, interest payments made up to ₹50,000 in a single fiscal year would not be subject to TDS deductions. An older person can apply to the bank using Form 15H to have the TDS withheld.