Senior Citizen Fixed Deposits (FDs) are term deposit plans tailored for individuals over 60. These FDs provide a safe investment option with guaranteed returns over a fixed period. For tenures of 3 to 5 years, interest rates can be as high as 9.10%.
Banks offering higher interest rates
Here’s a breakdown, by PolicyBazaar, of banks offering 8% or higher interest rates on fixed deposits for senior citizens over 3-year and 5-year tenures:
AU Small Finance Bank FD rates
3-year tenure: 8%
5-year tenure: 7.75%
Equitas Small Finance Bank FD rates
3-year tenure: 8.50%
5-year tenure: 7.75%
ESAF Small Finance Bank FD rates
3-year tenure: 7.25%
5-year tenure: 6.75%
Jana Small Finance Bank FD rates
3-year tenure: 8.75%
5-year tenure: 7.75%
Suryoday Small Finance Bank FD rates
3-year tenure: 9.10%
5-year tenure: 8.75%
Unity Small Finance Bank FD rates
3-year tenure: 8.65%
5-year tenure: 8.65%
Utkarsh Small Finance Bank FD rates
3-year tenure: 9.10%
5-year tenure: 8.35%
DCB Bank FD rates
3-year tenure: 8.05%
5-year tenure: 7.90%
RBL Bank FD rates
3-year tenure: 8%
5-year tenure: 7.60%
Additional rates: 0.25% on all tenures for super senior citizens
YES Bank FD rates
3-year tenure: 8%
5-year tenure: 8%
SBM Bank India FD rates
3-year tenure: 7.8%
5-year tenure: 8.25%
Deutsche Bank FD rates
3-year tenure: 8%
5-year tenure: 7.50%
Public sector banks FDs
While public sector banks offer lower interest rates compared to small finance banks or non-bank lenders, they are still preferred by many due to their government backing and widespread presence, which instills a sense of confidence and reliability.
Here are some competitive rates offered by public sector banks:
Bank of Baroda FD rates
3-year tenure: 7.65%
5-year tenure: 7.15%
Bank of India FD rates
3-year tenure: 7.25%
5-year tenure: 6.75%
Additional rates: 0.15% on tenures of 180 days to 10 years
Bank of Maharashtra FD rates
3-year tenure: 7%
5-year tenure: 7%
Canara Bank FD rates
3-year tenure: 7.30%
5-year tenure: 7.20%
Central Bank of India FD rates
3-year tenure: 7%
5-year tenure: 7%
Indian Bank FD rates
3-year tenure: 6.75%
5-year tenure: 6.75%
Additional rates: 0.25% on all tenures
Indian Overseas Bank FD rates
3-year tenure: 7%
5-year tenure: 7%
Additional rates: 0.25% on all tenures
Punjab National Bank (PNB) FD rates
3-year tenure: 7.50%
5-year tenure: 7%
Additional rates: 0.30% for tenures up to 5 years
Punjab & Sind Bank FD rates
3-year tenure: 6.50%
5-year tenure: 6.50%
Additional rates: 0.15% on tenure of 444 days, 222 days, 666 days, and 999 days
State Bank of India (SBI) FD rates
3-year tenure: 7.25%
5-year tenure: 7.50%
Union Bank of India FD rates
3-year tenure: 7.20%
5-year tenure: 7%
Additional rates: 0.25% on all tenures
Benefits of fixed deposits for senior citizens
According to Bank Bazaar, senior citizen FDs offer several benefits:
Higher interest rates: Senior citizens receive special interest rates, often higher than regular rates, resulting in greater earnings.
Safety and steady growth: FDs provide a safe place for money to grow at a steady pace.
Regular income: The interest earned can be turned into monthly incomes, offering peace of mind during retirement.
Tax benefits: Senior citizen FDs can serve as tax saver deposits, helping with deductions under section 80C of the IT Act.
Flexible interest payout options: Interest can be credited to the depositor’s savings account on a monthly, quarterly, half-yearly, or yearly basis, providing a steady income stream.
Eligibility for senior citizen fixed deposits
To open a senior citizen fixed deposit, you must be a resident of India or an NRI with an NRE or NRO account. You need to be above 60 years of age at the time of opening the deposit. Some banks may allow individuals over 55 who have taken early retirement to apply, subject to certain terms and conditions.
Documents required for opening a Senior Citizen FD
Age proof document
Passport
Aadhaar card
PAN card
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First Published: Jul 19 2024 | 11:57 AM IST
