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Fixed Deposits for Senior Citizens in India

Fixed Deposits for Senior Citizens in India


All leading banks and other financial entities in India offer very many options for a fixed deposit. The interest rates of the fixed deposit options range from 2.50%, per annum, to 9.50% per annum, or in other words, for tenures as short as seven days or as long as ten years. The interest rates for senior citizens are at least an extra 50 bps over and above the prevailing rates of the FDs. Some of the highest interest rates offered by banks for senior citizens are as follows:

Interest Rate Range
There could be genuine options available to individuals with multiple top banks and other financial institutions among which people can think of investing in fixed deposits. These banks come with interest rates in the range of 2.50% to 9.50% per annum for periods starting from 7 days to 10 years. In general, senior citizens get 50 bps more than the existing rates of regular FDs.

Additional Benefits
Here’s another tip: some banks and NBFCs run special schemes for certain tenures that can get the senior citizen an incremental 20-30 bps over others.

 Banks Offering the Highest Interest Rates
Some of the best interest rates under this category are offered by private sector banks such as SBM Bank, RBL Bank, Bandhan Bank, and IndusInd Bank, and small finance banks like AU Small Finance Bank, Jana Small Finance Bank, Suryoday Small Finance Bank, and Ujjivan Small Finance Bank, starting at 7.00% per annum for senior citizens.

 Tax Implications
Tax is applicable on interest earned on FDs more than ₹50,000 a year. TDS will also be applicable if Form 15G/15H is not submitted.

 Premature Closure
There is a penalty for the premature closure of an FD account.

 Renewal Options
The FD account can be renewed for additional periods at the interest rates prevailing at the time of maturity extension. Interest Rates Offered by Selected Banks
Below are the interest rates detail at which different banks are offering to senior citizens across tenures—

Axis Bank
– *Maximum Interest Rate:* 7.85%
– *1-Year Tenure:* 7.20%
– *3-Year Tenure:* 7.60%
– *5-Year Tenure:* 7.75%
– *Returns on ₹50,000 for 5 Years:* ₹73,392

 Bandhan Bank
– *Maximum Interest Rate:* 8.35% p.a.
– *1-Year Tenure:* 8.35%
– *3-Year Tenure:* 7.75%
– **5-Year Ten
– *Highest Interest Rate:* 7.75% per annum
– *1-Year Tenure:* 7.10%
– *3-Year Tenure:* 7.65%
– *5-Year Tenure:* 7.70%
– *Returns on ₹50,000 for 5 Years:* ₹73,212

– *Highest Interest Rate:* 7.75% per annum
– *1-Year Tenure:* 7.20%
– *3-Year Tenure:* 7.50%
– *5-Year Tenure:* 7.50%
– **Returns on ₹
– *Returns on ₹50,000 for 5 Years: ₹70,739*

 *Please note: These interest rates may vary. The most recent changes and updated terms will need to be confirmed individually by the bank.

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