Senior Citizen FD Rates

Best FD Interest Rates for Senior Citizens Offered by Top Private Sector Banks

Bank Name	Interest Rates (% p.a.)
	Highest slab	1-year tenure	3-years tenure	5-years tenure
Axis Bank	7.85	7.50	7.75	7.75
Bandhan Bank	8.50	7.75	7.75	6.60
City Union Bank	7.50	7.00	6.75	6.50
DBS Bank	8.00	6.75	7.00	7.00
DCB Bank	8.50	7.75	8.50	8.25
Dhanlaxmi Bank	7.75	7.25	7.00	7.10
Federal Bank	7.75	7.30	7.10	7.25
HDFC Bank	7.75	7.10	7.50	7.50
ICICI Bank	7.60	7.20	7.50	7.50
IDBI Bank	7.65	7.25	6.75	6.75
IDFC First Bank	8.25	7.25	8.25	7.50
IndusInd Bank	8.25	7.50	8.25	7.75
J&K Bank	7.60	7.60	7.00	7.00
Karnataka Bank	7.70	7.40	6.90	6.90
Kotak Mahindra Bank	7.70	7.50	7.00	6.70
Karur Vysya Bank	8.00	7.40	7.40	6.65
Nainital Bank	7.55	7.20	6.75	6.25
RBL Bank	8.30	7.50	7.60	7.60
SBM Bank	8.30	7.55	8.15	8.15
South Indian Bank	7.50	7.10	7.00	6.50
Tamilnad Mercantile Bank	8.50	7.75	7.00	7.00
YES Bank	8.25	8.00	7.75	7.75

Note: The above-stated senior citizen FD rates are updated as of 5 June 2023 and are applicable to deposits below Rs. 2 crores. 

FD Rates for Senior Citizens Offered by Small Finance Banks

Bank Name	Interest Rates (% p.a.)
	Highest slab	1-year tenure	3-years tenure	5-years tenure
AU Small Finance Bank	8.50	7.25	8.50	7.70
Capital Small Finance Bank	8.25	7.80	7.80	7.75
Equitas Small Finance Bank	9.00	8.70	8.50	7.75
ESAF Small Finance Bank	9.00	6.50	7.25	6.75
Fincare Small Finance Bank	9.11	8.10	8.60	8.60
Jana Small Finance Bank	9.00	7.75	7.85	6.50
North East Small Finance Bank	8.75	7.25	8.00	7.00
Shivalik Small Finance Bank	8.50	8.00	8.50	7.50
Suryoday Small Finance Bank	9.60	7.35	7.75	9.60
Ujjivan Small Finance Bank	8.75	8.75	7.70	7.70
Unity Small Finance Bank	9.50	7.85	8.60	8.15
Utkarsh Small Finance Bank	8.85	8.35	8.85	8.10

Note: The above-stated senior citizen FD rates are updated as of 5 June 2023 and are applicable to deposits below Rs. 2 crores.

Top 4 Special Fixed Deposit Schemes for Senior Citizens to Invest in 2023

1. SBI Wecare Fixed Deposit Scheme

State Bank of India (SBI) introduced the “SBI Wecare” Deposit for senior citizens wherein an additional premium of 50 bps (over & above the existing 50 bps on the regular FD rates) will be paid on FD for ‘5 years and above’ tenure.

2. HDFC Senior Citizen Care FD

HDFC Bank offers an additional premium of 25 bps (over and above the existing premium of 50 bps) to senior citizen FD depositors on the tenure of 5 years 1 day to 10 years on deposits less than Rs 5 crores for tenures of 5 years 1 day to 10 years. This scheme is valid from 18 May 2020 to 7 July 2023.

3. ICICI Bank Golden Years

Senior citizen FD customers of the ICICI Bank are offered an additional interest rate of 10 bps over and above the existing additional senior citizen FD rates of 50 bps, on tenure ranging from 5 years and 1 day to 10 years till 7 April 2023. The scheme is applicable on deposits of less than Rs 2 crore.

4. IDBI Naman Senior Citizen Deposit Scheme

IDBI Bank offers an additional interest rate of 0.25% p.a. over and above the prevailing additional senior citizen fd rates of 0.50% p.a., for tenures of above 1 year to 10 years. The scheme is valid till 31st March 2023.

Features of Senior Citizen FDs

• Deposit amount: Minimum amount: Rs 100; Maximum: No limit
• Tenure ranges from 7 days to 10 years
• Banks/NBFCs provide various interest pay-out options from which senior citizens can choose based on their requirements. These include monthly, quarterly, half-yearly pay-out and annual pay-out options. Alternatively, depositors can choose the cumulative FD option to keep the interest component invested till the FD maturity. The cumulative investment option would help the depositor benefit from the power of compounding, as the interest component starts generating returns on its own. Thus, the cumulative option would help the depositor generate higher returns than non-cumulative options.
• Further, banks/NBFCs allow senior citizens to withdraw fixed deposit amount partially or prematurely. However, most banks levy a penal rate (which can go up to 2%) on the applicable interest rate. Note, a premature withdrawal facility is not available in non-callable fixed deposits.
• Banks also provide an automatic renewal facility to depositors. This means that the fixed deposit account will be automatically renewed when it reaches its maturity date.
• Fixed deposits are secured under the insurance cover of up to Rs. 5 lakhs by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Eligibility for Senior Citizen Fixed Deposit

Resident individuals who are 60 years or above can book FD at preferential interest rates. Moreover, some banks/NBFCs also offer additional interest rates to super senior citizens of age 80 years and above. For instance, Indian Overseas Bank, Indian Bank, and RBL Bank offer an additional 0.75% interest rate over and above the regular fixed deposit rates to super senior citizens. Further, Punjab National Bank offers an additional 0.80% p.a. interest rates to super senior FD depositors.

Documents Required for Opening Senior Citizen FD Account

If a depositor wishes to open FD in the same bank where he/she already holds a saving account or current account, he/she can log on to net banking or mobile banking and open a fixed deposit account right away or can simply visit the branch with the required documents.

If the concerned depositor is not a customer of the bank, he/she has to visit the bank branch with the necessary following documents required as per KYC (Know Your Customer) guidelines.

Identity Proof

• Senior citizen ID card
• Passport
• PAN card
• Voter ID card
• Driving licence
• Photo ration card

Address Proof

• Passport
• Telephone bill
• Electricity bill
• Bank Statement with Cheque
• Certificate/ ID card issued by Post office

FAQs

Q. Who can open a senior citizen fixed deposit account?

A. Individuals aged 60 years and above can open senior citizens’ fixed deposit accounts and avail of additional senior citizen FD rates offered by top banks. To apply, they are required to provide age proof along with other required documents as well.

Q. Who is a senior citizen?

A. An individual who is of 60 years of age or more is legally termed a senior citizen.

Q. Which bank gives the best interest rates for senior citizens?

A. Suryoday Small Finance Bank offers the highest FD interest rates to senior citizens – 9.60% p.a.; followed by 9.50% p.a. FD interest rate offered by Unity Small Finance Bank

Q. Are investments made in fixed deposits taxable for senior citizens?

A. Yes. If the interest earned in a financial year (1^st April to 31^st March) crosses Rs. 50,000, TDS is charged at 10%.