Best Senior Citizens Fixed Deposit Schemes: Top 10 FDs Offering Up To 9% Interest

Best FD schemes: Fixed deposit schemes are one of the safest ways for risk-averse investors to get assured returns on their investments. Senior citizens who are looking for assured returns on their investments can consider investing in best senior citizens fixed deposit schemes that offer up to 9% higher interest.

Senior citizens fixed deposit schemes are a lucrative investment option for veterans and other people above the age of 60 years to park their money for stable returns.

What are senior citizen fixed deposit schemes?

Senior citizen fixed deposit schemes are operated by banks and similar financial institutions exclusively for citizens above the age of 60 years. In some cases, these FD schemes may be available for people of other age groups but they provide special benefits to senior citizens like higher FD rates, stability and assured returns.

Senior citizens fixed deposit schemes: What are the benefits?

Higher returns

One of the remarkable features of senior citizen FD schemes is higher interest rates. While other FD schemes may offer returns between 6-7% on tenures, returns from these senior citizen FDs can go as high as 9.5%. Small finance banks sometimes offer higher returns on FDs.

Stability

With senior citizen FDs, investors do not need to worry about price volatility as they will get assured returns on their fixed deposit investments.

Tax benefits

To encourage investment in fixed deposits, the government has notified certain tax benefits with FDs. Fixed deposit customers can get tax benefits under Section 80 TTB of the Income Tax Act. Investors can take advantage of tax benefits on their deposits like cooperatives, non-cooperatives, commercial banks and other financial institutions.

Top senior citizens fixed deposits

Many banks are offering fixed deposit schemes with special benefit for senior citizens like higher interest and special tenure. While it is difficult to mention all the the fixed deposit schemes that have (have different tenure), here are details of fixed deposit interest offered by top private banks, small finance banks, and public sector banks to senior citizens.

Bank Name	1 yr interest rate (%)	3 yr interest rate (%)	5 yr interest rate (%)	10 yr tenure interest rate (%)
AU Small Finance Bank	7.75	8	7.75	7.75
North East Small Finance Bank	7.5	9	8.5	6.75
Jana Small Finance Bank	8.75	8.75	8.2	7
Suryoday Small Finance Bank	8.75	8.75	9.1	7.75
DCB Bank	7.6	8	7.9	7.75
Tamilnad Mercantile Bank	7.5	7	7	7
SBI	7.3	7.25	7.5	7.5
Union Bank of India	7.3	7.2	7	7
Indian Bank	6.6	6.75	6.75	6.85
PNB	7.3	7.5	7	7.3

How to open a senior citizen FD account?

One can open a senior citizen FD account online or offline. People can visit the nearest branch of the bank of their choice to open a senior citizen FD account. Senior citizens can also apply online to open FD scheme with their desired bank, whether it is small finance bank or a public sector bank. There is also an option to select the way in which senior citizens want to receive their FD payment, ie quarterly, monthly or annually.

Senior citizens can choose the option of receiving return on their FD in a fixed portion every month, or via receiving the amount in fixed portion in every three months or every year.
Senior citizens are required to submit required forms and their identity proofs to open account. Once the FD account is opened, they are required to submit the FD amount. The amount can be either deposited through cheque or by demand draft.