Fixed Deposits (FDs) are a popular choice for investment due to their safety and reliable returns. For seniors, FDs offer some extra perks, including slightly higher interest rates with Senior Citizen Fixed Deposit schemes. However, interest rates for seniors can vary depending on factors like tenure. In this article, we'll look at the highest fixed deposit interest rates for senior citizens in India in 2024.
What is Senior Citizen Fixed Deposit (FDs)?
Senior Citizen Fixed Deposits are special term deposit plans designed for individuals aged 60 and above. In India, interest rates on senior citizen FDs typically range from 3.00% to 8.50% across various tenures, spanning from less than a year to over five years. Besides the boosted interest rates, which can be up to 0.50% higher than those for the general public, these FD accounts offer seniors other advantages. Opting for regular interest payouts can provide a steady income stream during retirement, while the option to take a loan against the FD adds flexibility.
Which Bank Has the Highest Senior Citizen FD Interest Rates?
| Bank | Senior Citizen FD Rates | Description |
| Freo | 9.0% | Highest-interest rate for senior citizens with attractive benefits. |
| IndusInd Bank | 8.25% | Competitive rate offering stability and reliability. |
| IDFC First Bank | 8.0% | Reliable option with a solid track record in banking. |
| Punjab National Bank | 7.75% | Trusted bank providing secure investment opportunities. |
| Indian Bank | 7.75% | Established institution with a history of customer satisfaction. |
| HDFC Bank | 7.75% | Renowned for its customer service and financial stability. |
| Bank of Baroda | 7.75% | Offers competitive rates with a wide range of services. |
| Kotak Mahindra Bank | 7.7% | Innovative bank known for its customer-centric approach. |
| State Bank of India | 7.6% | Largest public sector bank providing secure investment options. |
| ICICI Bank | 7.6% | Leading private sector bank offering attractive FD rates. |
1. Freo Money
Freo is offering an attractive Senior Citizen FD interest rate of 9%! Don't miss the chance to grow your savings while maintaining financial discipline. Secure your future by starting a fixed deposit with Freo today. High returns, low risk! Freo's 9% Senior Citizen FD is the perfect way to secure your future. Open an FD today!
2.IndusInd Bank
IndusInd Bank provides various fixed deposit options with different interest rates. Senior citizens can earn an interest rate of 8.25%. With a minimum deposit of INR 10,000 and flexible tenures from 7 days to 120 months, starting an IndusInd Bank FD is convenient and beneficial.
3. IDFC First Bank
IDFC First Bank offers flexible deposit options for individuals aged 18 to 60. Starting with a minimum deposit of INR 10,000 and tenures ranging from 7 days to 10 years, customers can earn up to 8% interest. Senior citizens enjoy special rates, enhancing their savings potential.
4. Punjab National Bank
PNB provides a variety of FD options to meet different financial needs. Senior citizens benefit from a competitive interest rate of 7.75%, ensuring attractive returns on their investments.
5. Indian Bank
Indian Bank offers a competitive interest rate of 7.25%. Senior citizens receive an even better rate of 7.75%. With a low minimum deposit requirement of INR 1,000 and flexible tenures from 7 days to 10 years, Indian Bank's FDs provide accessibility and convenience. Additionally, customers can benefit from an auto-renewal option, ensuring continuous growth of their investments.
6. HDFC Bank
HDFC Bank allows you to enjoy the flexibility of a fixed deposit scheme with a competitive interest rate of 7.75%. Booking a regular FD is made easy through net banking.
7. Bank of Baroda
With interest rates also at 7.75% for senior citizens, Bank of Baroda offers fixed deposits with varying tenures, typically ranging from 12 to 120 months.
8. Kotak Mahindra Bank
Seniors can benefit from an interest rate of 7.7% on their savings at Kotak Bank, with maturity periods spanning from 7 days to ten years.
9. State Bank of India (SBI)
SBI offers a solid interest rate of 7.6% for senior citizens, along with flexible tenure options ranging from 7 days to 10 years and no maximum deposit limit.
10. ICICI Bank
Senior citizens can avail themselves of a 7.6% interest rate at ICICI Bank, with interest paid out only at maturity. Additionally, depositors can access loan facilities of up to 90%.
Benefits of Senior Citizen Fixed Deposits
1. Better Interest Rates
Senior citizen fixed deposits offer higher interest rates, allowing for increased earnings over time.
2. Safe Investment
These deposits provide a secure way for money to grow steadily, offering financial stability and peace of mind.
3. Regular Income
Interest earned from these deposits can be received as monthly income, providing added financial security during retirement.
4. Tax Benefits
Senior citizen fixed deposits qualify for tax deductions under section 80C of the Income Tax Act, helping depositors save on taxes.
5. Flexible Payout Options
Depositors can choose how often they receive interest payouts, whether monthly, quarterly, half-yearly, or yearly, to suit their financial needs.
Tax Implications on Senior Citizen FDs
The interest earned from fixed deposits for senior citizens could be subject to income tax regulations as per the prevailing laws. These taxes, if applicable, are deducted at the source. However, if you're not required to pay taxes, you have the option to submit either Form 15G or Form 15H to the banks.
For NRE deposits, tax liability may not apply. However, in the case of NRO and FCNR deposits, the interest earned could be subject to taxation.
Make the Move! Open Your Freo Savings FD Today!
Learn more about returns here - Freo Savings FD returns The values generated by the calculator are indicative. For accurate figures on returns, please use the Freo app.
Frequently Asked Questions (FAQs)
1. How are senior citizen FDs taxed?
A: If you earn more than Rs. 50,000 in interest from your FDs in a financial year (April 1st to March 31st), the bank will deduct TDS (Tax Deducted at Source) at a rate of 10%.
2. Who can qualify for a senior citizen FD account?
A: Anyone 60 years of age or older is eligible to apply for a senior citizen FD scheme.
3. What's the difference between a regular FD and a senior citizen FD?
A: Senior citizen FDs offer special interest rates typically 0.5% higher than regular FDs.
4. Can a senior citizen open a joint FD with someone younger?
A: Yes, you can open a joint FD with someone who isn't a senior citizen. However, for special senior citizen FD schemes, the primary account holder must be a senior.
5. Do senior citizens have to pay TDS on FDs?
A: No, unless the total interest earned across all your FDs with a bank exceeds Rs. 50,000 in a financial year. Then, TDS applies only to the amount exceeding Rs. 50,000.
