Banks and NBFCs offer FD interest rates of 2.55-8.15% p.a. to senior citizens on tenures ranging from 7 days to 10 years. Most banks and NBFCs offer an additional interest rate of 50 bps over the regular fixed deposit interest rates. However, these preferential interest rates are only offered to resident senior citizen FD depositors. Some banks and NBFCs also offer additional interest rates of 20-30 bps, over and above the additional FD rates offered to senior citizens. However, the additional rates offered over and above the senior citizen, FD rates are provided under special FD schemes for pre-determined tenures.
Some private sector banks (SBM Bank, RBL Bank, Bandhan Bank and IndusInd Bank) and small finance banks (such as AU Small Finance Bank, Jana Small Finance Bank, Suryoday Small Finance Bank, and Ujjivan Small Finance Bank) offer the highest FD slab rates of 7.00% p.a. and above to senior citizen depositors.
Fixed Deposit Interest Rates for Senior Citizens Offered by Top Public Sector Banks
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-years tenure | 5-years tenure | |
| Bank of Baroda | 6.35 | 5.50 | 6.00 | 6.00 |
| Indian Bank | 6.10 | 5.60 | 5.85 | 5.85 |
| Indian Overseas Bank | 6.10 | 5.90 | 6.10 | 6.10 |
| Punjab National Bank (PNB) | 6.10 | 5.70 | 5.80 | 6.00 |
| State Bank of India (SBI) | 6.30 | 5.80 | 5.95 | 6.30 |
| UCO Bank | 6.10 | 5.55 | 5.80 | 5.80 |
| Union Bank of India | 6.00 | 5.50 | 5.80 | 5.90 |
Note: The above-stated FD interest rates for senior citizens are updated as of 24 June 2022 and are applicable to deposits below Rs. 2 crores.
Also Know: Top 10 FD Interest Rates Offered by Banks/NBFCs in India
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 | 6.50 | 6.10 | 6.35 | 6.50 |
| Bandhan Bank | 7.00 | 6.50 | 7.00 | 6.35 |
| HDFC Bank | 6.50 | 5.85 | 6.00 | 6.20 |
| ICICI Bank | 6.50 | 5.85 | 6.00 | 6.20 |
| IDFC First Bank | 6.75 | 6.25 | 6.50 | 6.75 |
| IndusInd Bank | 7.00 | 6.50 | 7.00 | 7.00 |
| Kotak Mahindra Bank | 6.40 | 6.00 | 6.40 | 6.40 |
| RBL Bank | 7.15 | 6.75 | 6.80 | 6.80 |
| SBM Bank | 7.10 | 6.50 | 6.35 | 6.35 |
| Yes Bank | 7.25 | 6.50 | 7.25 | 7.25 |
Note: The above-stated FD interest rates for senior citizens are updated as of 24 June 2022 and are applicable to deposits below Rs. 2 crores.
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FD Interest 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 | 7.40 | 5.85 | 7.40 | 7.40 |
| Equitas Small Finance Bank | 7.35 | 7.00 | 7.25 | 6.50 |
| Fincare Small Finance Bank | 7.25 | 6.50 | 7.00 | 7.25 |
| Jana Small Finance Bank | 8.15 | 7.80 | 8.05 | 8.05 |
| Suryoday Small Finance Bank | 7.99 | 7.00 | 7.50 | 7.25 |
| Ujjivan Small Finance Bank | 7.70 | 7.20 | 7.00 | 7.70 |
| Utkarsh Small Finance Bank | 7.75 | 7.40 | 7.25 | 7.25 |
Note: The above-stated FD interest rates for senior citizens are updated as of 24 June 2022 and are applicable to deposits below Rs. 2 crores.
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Top 4 Special Fixed Deposit Schemes for Senior Citizens to Invest in 2022
1. SBI Wecare Fixed Deposit Scheme
State Bank of India (SBI) introduced “SBI Wecare” Deposit for senior citizens wherein an additional premium of 30 bps (over & above the existing 50 bps on the regular FD interest rates) will be paid on FD for ‘5 years and above’ tenure. The scheme is applicable till 30th September 2022.
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.
3. ICICI Bank Golden Years
Senior citizen FD customers of the ICICI Bank are offered an additional interest rate of 25 bps over and above the existing additional rate of 50 bps, on tenure ranging from 5 years and 1 day to 10 years till 7th October 2022. 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 rate of 0.50% p.a., for tenures of above 1 year to 10 years. The scheme is valid till 30 September 2022.
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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 and Indian Bank offer an additional 0.75% interest rate over and above the regular FD interest rates to super senior citizens.
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
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FAQs
Q. 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.
Q. Who is a senior citizen?
A. An individual who is of 60 years of age or more is legally termed as a senior citizen.
Q. Which bank gives the best FD interest rates for senior citizens?
A. Currently, the highest senior citizen fixed deposit rate is 8.15% offered by Jana Small Finance Bank.
Q. Are investments made in fixed deposits taxable for senior citizens?
A. Yes. If the interest earned in a financial year (1st April to 31st March) crosses Rs. 50,000, TDS is charged at 10%.