Senior Citizen FD Rates

Senior Citizen FD Rates by Small Finance Banks

Note: The above-stated FD rates are from small finance banks and are applicable to deposits below Rs. 2 crore. Interest Rates updated as on 17 September 2020.

Senior Citizen FD Interest Rates by Top Commercial Banks, 2020

Note: The above-stated fixed deposit rates for senior citizens are updated as on 17th September 2020 and are applicable to deposits below Rs. 2 crore.

*Oriental Bank of Commerce has been merged with Punjab National Bank and the updated rates are those of PNB only, effectively from 1st April 2020. 

The following mentioned points highlight the features of senior citizen fixed deposit schemes offered by various banks:

• Tenure ranges from 7 days to 10/20 years
• Additional FD rates are applicable in most of the schemes (usually ranging from 0.25% to 0.65%)
• Most of the banks calculate interest on quarterly compounding bases, however, some banks may also offer monthly, annual or semi-annual basis
• FD done for a period of 5 years qualifies as tax saving, i.e. investors can claim 80C deductions for up to Rs. 1.5 lakh
• Bulk deposits are available which usually start from Rs. 2 crore
• Bulk deposits may not carry preferential rates though

Get Your Free Credit Report with Monthly Updates Check Now

To open a senior citizen fixed deposit account in a post office, depositors have to visit the post office and fill the relevant FD form to open an account. They also need to deposit the investment amount either through cheque or demand draft.

Depositors can open an FD account in banks as well. Most banks accept online form submissions where individuals can fill and submit their FD account opening form online. The amount of the deposit is usually deducted from the applicant’s preferred savings bank account. Senior citizens can also choose how they wish to receive interest. It can be credited monthly, quarterly, or annually.

As far as steps for banks are concerned, they are the same as for a non-senior citizen. Refer the table below to check the steps to open fixed deposit in different banks:

Get Your Free Credit Report with Monthly Updates Check Now

Tax Deducted at Source or TDS is a way of deducting tax right at the source of income. In case of fixed deposits, banks and NBFCs deduct tax from the accrued interest before crediting to the depositor’s account. In case of cumulative interest payment, TDS is charged as the interest accrues, i.e. monthly, quarterly, half-yearly or yearly.

For senior citizens, tax is deducted @ 10% on the earned interest when the interest exceeds Rs. 50,000 as opposed to Rs. 40,000 for regular citizens.

The following list of documents must be checked to successfully open a fixed deposit account in any bank or non-banking financial companies (NBFCs):

• Photo ID proof (Passport and Voter ID Card, etc.)
• Age Proof
• Residence proof (Aadhaar Card, Passport, latest electricity/water bill, etc.)
• PAN Card (or Form 60 if PAN card is not available)
• Form 15H 

Eligibility Criteria :

Most of the banks consider those individuals as senior citizens who are of or above the age of 60 years.

Also, some of the banks consider super senior citizens as well. These are the individuals who have crossed the age bar of 80 years. They are offered with extra fixed deposit interest rates over the rates offered to senior citizens.

Get Your Free Credit Report with Monthly Updates Check Now

Who can open a senior citizen fixed deposit account?

A. One who falls in the senior citizens’ category, i.e. 60 years or above, can apply for senior citizens’ fixed deposit account. To apply, they are required to provide age proof along with other required documents as well.

Who is a senior citizen?

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

Which bank gives maximum FD interest rate for senior citizens?

Presently, the highest senior citizen fixed deposit rate is 8.00% offered by Suryodaya Small Finance Bank,Jana Small Finance Bank and Utkarsh Small Finance Bank.

Are investments made in fixed deposit taxable for senior citizens?

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%.