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Fixed Deposits For Senior Citizens With Interest Rates Up To 8%

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Investment in secure financial tools becomes very necessary as one retires from the operation or merely ventures into his or her later years. For elderly people who have poor or irregular income, fixed deposits tend to be a safe option. Top commercial banks as well as non-bank financial companies or NBFCs, support senior citizens with an additional rate of 0.25 per cent to 1.00 per cent (approximately). In their post-retirement years, the regular interest payout opportunity can enable senior citizens to get a stable and secure revenue stream. If necessary, they can also request a loan against their FD. If it is a 5-year tax-saving fixed deposit and receiving additional interest, senior citizens can also cherish tax benefits. So let's check the best FD interest rates and other related benefits for senior citizens below.

Fixed Deposits For Senior Citizens With Interest Rates Up To 8%
 

Key takeaways of fixed deposit schemes for senior citizens

The following points illustrate the attributes of fixed deposit schemes for senior citizens proposed by different banks:

  • Senior citizens FDs comes with a tenure of 7 days to 10/20 years
  • In most of the schemes, additional FD rates are offered to them starting from 0.25 percent to 0.65 percent respectively.
  • Interest rates are calculated on a quarterly monthly, annual or semi-annual basis which may differ from bank to bank.
  • FD handled for a tenure of 5 years counts as tax relief, i.e. investors can claim up to Rs. 1.5 lakh as tax deductions under the section of 80C.
  • On these deposits, nomination facilities are also available for senior citizens where they can nominate an individual.
  • A premature withdrawal facility is also available with penalties only for regular FD based on the bank's regulations.

Documents required

To successfully open a fixed deposit account at any bank or non-banking financial company (NBFC), the below-mentioned documents will be required:

  • ID or age proof: Aadhaar Card, PAN Card, Voter ID Card, etc.
  • Residence proof: PAN Card, Aadhaar card, utility bills, etc.
  • Form 60 if PAN card is not available
  • Form 15H

Eligibility required

The below-mentioned eligibility criteria must be met by senior citizens at the time of opening a fixed deposit account:

  • He or she must be an Indian resident with a minimum age of 60 years
  • By means of NRE or NRO accounts, NRI senior citizens can also open an FD account.
  • Most of the banks may enable seniors over the age of 55 to apply for FD who have taken early retirement.
  • Super senior citizens are also treated by some of the banks for those who have surpassed the age limit of 80 years.

Fixed Deposits For Senior Citizens With Interest Rates Up To 8%
 

TDS applicable on Senior Citizen FDs

Tax Deducted at Source or TDS is a means to subtract the tax on a monthly, quarterly, half-yearly or yearly from the revenue stream. Banks and NBFCs subtract tax from the accumulated interest on fixed deposits before being credited to the account of the holder. Tax is deducted on the interest received for senior citizens @ 10 percent when the interest reaches Rs. 50,000 as compared to Rs. 40,000 for the general public. Hence, you can submit form 15G or 15H to the banks in case you are not liable to pay taxes.

Small Finance Bank FDs For Senior Citizens

The FD rates mentioned below are only applicable for deposits below Rs. 2 crore.

Bank Tenure ROI (p.a.)
Jana Small Finance Bank Above 2 to 3 years 8.00%
Suryoday Small Finance Bank 5 years 8.00%
Equitas Small Finance Bank Above 2 years 7.85%
Utkarsh Small Finance Bank 700 days 7.50%
Ujjivan Small Finance Bank 1 year - 2 years 7.00%
Fincare Small Finance Bank 36 months 1 day to 59 months 7.00%

Best FDs For Senior Citizens Provided By Leading Commercial Banks

The FD rates mentioned below are only applicable for deposits below Rs. 2 crore.

ROI (p.a.) for differnt tenure
Bank 1 year 3 years 5 years
RBL Bank 7.25% 7.45% 7.00%
DCB Bank 7.00% 7.45% 7.45%
YES Bank 7.25% 7.00% 7.00%
Bandhan Bank 6.50% 6.50% 6.50%
Axis Bank 5.80% 5.90% 6.00%
IDFC First Bank 5.75% 5.75% 5.75%
IndusInd Bank 7.50% 7.25% 7.25%
Federal Bank 5.75% 6.00% 6.00%
Canara Bank 5.75% 5.80% 5.80%
HDFC Bank 5.40% 5.65% 5.80%
ICICI Bank 5.40% 5.65% 5.85%
Bank of Baroda 5.40% 5.60% 5.75%
PNB 5.95% 6.00% 6.00%
SBI 5.40% 5.80% 6.20%

Goodreturns.in

Read more about: senior citizens fds
Story first published: Monday, November 30, 2020, 18:09 [IST]
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