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Senior Citizen FD Rates 2021

FD Interest Rates For Senior Citizens

Last Updated 28th Jul 2021

Bank Senior Citizen FD Rates
PNB Housing Finance 6.15% - 6.95%
HDFC 6.00% - 6.50%
Bajaj Finserv 5.90% - 6.75%
ICICI Home Finance 4.55% - 6.70%
SBI 3.40% - 6.20%
IDFC First Bank 2.75% - 6.50%
Axis Bank 2.50% - 6.25%
Earn upto 6.95% on FD APPLY NOW

Best Senior Citizen Fixed Deposit Rates from Top Banks

Commercial Bank Senior Citizens FD Interest Rate
Yes Bank
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3.75% - 7.25%
IndusInd Bank
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3.25% - 7.00%
DCB Bank
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5.00% - 7.00%
Karnataka Bank
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3.80% - 6.95%
RBL Bank
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3.75% - 6.80%
India Post Office
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5.50% - 6.70%
Lakshmi Vilas Bank
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2.50% - 6.50%
IDFC First Bank
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2.75% - 6.50%
ICICI Bank
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3.00% - 6.30%
HDFC Bank
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3.00% - 6.25%

Senior Citizen Fixed Deposit

Senior Citizen fixed deposits are investment options for increasing wealth and saving on taxes. The senior citizen fixed deposit interest rates are higher than general FD rates. Senior citizens FD provides an excellent choice for senior citizens who have low or irregular income. Most banks offer a higher interest rate on FD Interest rates for Senior Citizens.

Features & Benefits of Senior Citizen Fixed Deposit

Features and benefits of fd for senior citizens are as follow:

  • The term of the Senior Citizen FDs lies between 7 days to 10 years.
  • Most banks offer a higher rate of interest on senior Citizen FDs.
  • Nomination facility is available under this type of FD.
  • Individuals can also opt for special FD such as Tax saver FD to save taxes. Tax savers FD have a lock-in period of 5 years.
  • The interest earned is compounded on a monthly, quarterly, half- yearly or annual basis.
  • The maximum limits under the senior Citizen usually lie around ₹ 1 Cr and may differ from banks to banks.

Eligibility for Senior Citizen Fixed deposit

You have to fulfil the following eligibility to open a senior citizen fixed deposit account:

  • You should be above the age of 60 years. However, some banks allow individuals above the age of 55 or those who have taken early retirement but the rules and terms and conditions differ from bank to bank.
  • If you are an NRI senior citizen, you can open a fixed deposit account with NRE or NRO accounts.

Documents required for opening Senior Citizen FD

  • Age proof document
  • Passport
  • Aadhaar Card
  • PAN card and PAN
  • Photograph

Senior Citizen FD Rates - Small Finance Banks

Small Finance Bank Senior Citizens Interest Rates
Ujjivan Small Finance Bank3.55% - 7.30%
Jana Small Finance Bank3.00% - 7.25%
ESAF Small Finance Bank4.50% - 7.00%
Equitas Small Finance Bank4.00% - 7.00%
AU Small Finance Bank4.25% - 7.00%

Senior Citizen FD Rates – Non Banks

Non Banks Senior Citizens Interest Rates
PNB Housing Finance6.15% - 6.95%
Bajaj Finserv5.90% - 6.75%
ICICI Home Finance4.55% - 6.70%
HDFC6.00% - 6.50%
LIC Housing Finance5.50% - 6.00%

How to open a Senior Citizen Fixed Deposit Account?

You can open a senior citizen fixed deposit offline by visiting a bank branch or online via the bank's website. You can also open a senior citizen FD with MyLoanCare. To open a senior citizen fixed deposit account perform the following steps:-

  • Download the MyLoanCare app or visit the MyLoanCare website.
  • Go to fixed deposits and fill in the application form here.
  • Fill the form with the required information like Occupation, Name, Gender, Deposit amount etc.
  • Click on ‘Invest Now’.

Senior Citizen Tax Saving Fixed Deposits Schemes

Tax Saver FD is a type of fixed deposits by investing in which you can get tax deduction under section 80C of the Indian Income Tax Act, 1961. An individual can claim a deduction of a maximum of ₹ 1.50 Lakh by investing in tax saver fixed deposits. Some of the main features of tax-saving FD are as follow:

  • The lock-in period is of 5 years.
  • Interest earned is taxable.
  • Rate of interest earned on tax savers FD generally lies from 5% to 7%.

Latest news about Special FD Scheme for Senior Citizens

  • Top Bank extends the date for Senior Citizen FD Scheme
    HDFC Bank, ICICI Bank, SBI & Bank of Baroda have extended the date for the special senior citizen FD scheme for the fourth time. This scheme is now valid till 30th September 2021. Earlier, the scheme was introduced to offer senior citizens financial aid in times of falling interest rates due to the Covid-19 pandemic and was valid till 31st March 2021. Under this scheme, senior citizens can earn upto 6.25% on their deposit, which is 75 points above the applicable rates to the general public.

FAQs

Which bank is best for senior citizens?

The best bank for senior citizens depend on your requirement and may differ. Some of the best banks that offer higher returns on senior citizens FD account are India Post Office, DCB Bank, ESAF Small Finance Bank, AU Small Finance Bank, Equitas Small Finance Bank. On the basis of senior citizen FD interest rate, Yes Bank offers the highest FD interest rate of 7.25%.

Is interest on FD taxable for senior Citizen?

If you are a senior citizen and a resident of India, you are exempted from income tax on the interest earned up to ₹ 50,000 in a financial year. If the interest earned is above ₹ 50,000 in a financial year, then the interest amount will be eligible for a tax deduction.

What is the age for senior Citizen for bank FD?

Age of senior Citizen should be 60 years or above on the date of opening an FD account. Most of the banks like HDFC Bank, SBI, ICICI, Axis Bank and IDFC First open a senior citizen account if you are above 60 years.

How much interest is tax-free for senior Citizen?

Interest income of upto ₹ 50,000 in a financial year is tax exempted for a senior citizen. This exemption is given under section 80C of the Indian Income Tax Act, 1961.

Can a senior citizen open a fixed deposit account jointly with a person who is not a senior citizen?

Yes, if you are a senior citizen you can open a fixed deposit account jointly with a person who is not a senior citizen. But to avail the fd interest rates for senior citizens, the primary depositor should be a senior citizen.

Which bank gives maximum FD interest rates for senior citizens?

Yes Bank and DCB Bank are offering the highest senior citizen interest rate. They are giving a rate of 7.25% and 7.00%, respectively.


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