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5 Best 3-5 Years FDs With Returns Up To 7.45% For Senior Citizens


A fixed deposit still remains the most common of all investment options among all age groups of investors, particularly senior citizens. One of the key factors of fixed deposit, along with the stability and assured returns is that it provides an additional interest rate of around 0.50%-0.65% depending on the bank to senior citizens. You can also select the frequency of interest payouts and reap from the FD investment's high stability and conveniently monitor your investments.

Benefits of Senior Citizen FDs

Benefits of Senior Citizen FDs

Apart from the alluring and better interest rates for senior citizens, fixed deposits also provide the below-mentioned benefits to them.

  • Regardless of inflation or the current market circumstance the interest rates are always the same.
  • As banks are governed by the RBI, once you have deposited in a senior citizen fixed deposit, your hard-earned capital would be secure.
  • As stated earlier, the frequency of the interest payout alternatives can be chosen from either monthly, quarterly, or annually.
  • The convenient account opening process, i.e. the online account opening process is also possible for senior citizens as well as the general public.
  • All banks on all FDs offer premature withdrawal, nomination, loan, and sweep-in facility.
  • The minimum deposit amount for an FD varies throughout banks. There is no restriction to the overall amount you can deposit in an FD.
  • Currently, for a minimum of 7 days and a maximum of 10 years, one can invest in an FD. The tenure can be selected according to your requirements within this set.
  • FD undertaken for a duration of five years counts as tax saving, i.e. investors can seek deductions up to Rs. 1.5 lakh under 80C.
3 Year FD Rates For Senior Citizens

3 Year FD Rates For Senior Citizens

Banks ROI in % per annum
DCB Bank 7.45
AU Small Finance Bank 7.25
RBL Bank 7.00
IndusInd Bank 7.00
Ujjivan Small Finance Bank 6.55
5 Year FD Rates For Senior Citizens

5 Year FD Rates For Senior Citizens

Banks ROI in % per annum
DCB Bank 7.45
IndusInd Bank 7.00
AU Small Finance Bank 7.00
RBL Bank 6.90
Bandhan Bank 6.50


Under recently launched section 80TTB of the Income Tax Act, interest earned up to Rs 50,000 on investments maintained with banks, cooperative banks or post offices are legally exempted from taxation. In addition, no TDS will be withheld from interest payments received in a single financial year of up to Rs 50,000. A senior citizen can submit Form-15H to the bank to prevent TDS. This means that as a deduction from total income before tax levy, a senior citizen can seek to exempt up to Rs 50,000 interest income received from the above-mentioned organisations or bodies.


How Can I Secure My Retirement Income?

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