Highest Interest Rate on Senior citizen FD: Fixed Deposit (FD) is one of the safest options for investment. This investment option is very popular among those people who avoid taking risk on their savings. People’s money remains safe in FD and the returns deposited in it are guaranteed. Apart from this, insurance cover is available on FD by the government organization DICGC. This insurance covers every investor’s FD, recurring deposits i.e. RD, savings and current account deposits up to Rs 5 lakh in case of bank default.
FD is an easy way for senior citizens i.e. senior citizens aged 60 years and above, through which they can earn stable returns. Many banks give 0.50% to 0.75% additional return on FD to their customers above 60 years of age compared to the general public. These rates on senior citizen FD are different in different banks. If you are a senior citizen and are thinking of investing your savings in a bank offering the best returns to get better returns, then check these features before investing.
You can easily get loan against FD
Senior citizens have many benefits of FD, one of which is that they can get a loan by pledging it as collateral when they require funds. The maximum loan amount depends on the principal amount of your FD. You get a fixed time to repay the loan, and the FD remains pledged until the entire loan is repaid.
You can withdraw money even before maturity
While senior citizens invest in FD, they aim to hold it till maturity, but many banks allow premature withdrawal. With this facility, money can be withdrawn with less penalty in case of emergency. In this way big losses can be avoided. Senior citizen FD provides liquidity along with financial security. Due to which financial needs can be easily met in case of emergency.
TDS will not be deducted on filling this form
To avoid TDS (Tax Deducted at Source) on interest earned on deposits in Fixed Deposit (FD) and Recurring Deposit (RD), senior citizens aged 60 years and above can fill Form 15H. This is a self-declaration form, by filling which the bank will not deduct TDS on your interest. This form comes under Section 197A (1C) of Income Tax.
The best fixed deposit (FD) for senior citizens depends on features like interest rate, tenure and other benefits. Before locking the FD scheme, investors should understand the interest rates of various banks and the conditions applicable to the FD scheme. Here is a list of banks offering better returns on senior citizen FD.
These banks are giving highest returns on senior citizen FD
|
Senior Citizen FD Rate |
||||||
| bank name | Annual interest rate on FD | Additional interest to people above 80 years | ||||
|
Highest interest and tenure |
Interest on 1 year FD (%) |
Interest on 3 year FD (%) |
Interest on 5 year FD (%) |
|||
| interest rate (%) | Tenure | |||||
| Small Finance Bank | ||||||
| AU Small Finance Bank | 8.50 | 18 months | 7.75 | 8.00 | 7.75 | , |
| Equitas Small Finance Bank | 8.75 | 444 days | 8.60 | 8.50 | 7.75 | , |
| ESAF Small Finance Bank | 8.75 | 2 years to less than 3 years | 6.50 | 7.25 | 6.75 | , |
| Jana Small Finance Bank | 8.75 | 365 days to 1095 days | 8.75 | 8.75 | 7.75 | , |
| NorthEast Small Finance Bank | 9.50 | 546 days to 1111 days | 7.50 | 9.50 | 6.75 | , |
| Suryoday Small Finance Bank | 9.10 | Above 2 years to 3 years | 7.35 | 9.10 | 8.75 | , |
| Ujjivan Small Finance Bank | 8.75 | 12 months | 8.75 | 7.70 | 7.70 | , |
| Unity Small Finance Bank | 9.50 | 1001 days | 8.35 | 8.65 | 8.65 | , |
| Utkarsh Small Finance Bank | 9.10 | 2 years to 3 years; 1500 days | 8.60 | 9.10 | 8.35 | , |
| private bank | ||||||
| Axis Bank | 7.75 | 15 months to less than 2 years; 5 years to 10 years | 7.20 | 7.60 | 7.75 | , |
| Bandhan Bank | 8.55 | 1 year | 8.55 | 7.75 | 6.60 | , |
| City Union Bank | 8.00 | 333 days | 7.25 | 6.75 | 6.50 | , |
| CSB Bank | 7.75 | 401 days | 5.50 | 6.25 | 6.25 | , |
| DBS Bank | 8.00 | 376 days to 540 days | 7.50 | 7.00 | 7.00 | , |
| DCB Bank | 8.55 | 19 months to 20 months | 7.60 | 8.05 | 7.90 | , |
| Federal Bank | 7.90 | 50 months; 777 days | 7.30 | 7.50 | 7.25 | , |
| HDFC Bank | 7.90 | 4 Years 7 Months (55 months) | 7.10 | 7.50 | 7.50 | , |
| ICICI Bank | 7.80 | 15 months to less than 18 months | 7.20 | 7.50 | 7.50 | , |
| IDFC First Bank | 8.25 | 400 days to 500 days | 7.00 | 7.30 | 7.25 | , |
| IndusInd Bank | 8.25 | 1 year to 2 years | 8.25 | 7.75 | 7.75 | , |
| Jammu & Kashmir Bank | 7.50 | 1 year to less than 3 years | 7.50 | 7.25 | 7.00 | , |
| Karur Vysya Bank | 8.10 | 760 days – Special Deposit | 7.40 | 7.40 | 7.40 | , |
| Karnataka Bank | 8.00 | 375 days | 7.85 | 7.00 | 7.00 | , |
| Kotak Mahindra Bank | 7.90 | 390 days to less than 23 months | 7.60 | 7.60 | 6.70 | , |
| RBL Bank | 8.60 | 500 days | 8.00 | 8.00 | 7.60 | 0.25% on all tenures |
| SBM Bank India | 8.75 | Above 18 months to less than 2 years 3 days | 7.55 | 7.80 | 8.25 | , |
| South Indian Bank | 7.90 | 1 year 7 days | 7.20 | 7.20 | 6.50 | , |
| Tamilnad Mercantile Bank | 7.60 | 300 days(TMB300) | 7.50 | 7.00 | 7.00 | , |
| Yes Bank | 8.50 | 18 months | 7.75 | 8.00 | 8.00 | , |
| government bank | ||||||
| Bank of Baroda | 7.80 | 400 days – Bob Utsav | 7.35 | 7.65 | 7.40 | 0.10% on tenures of above 1 year to 5 years |
| Bank of India | 7.80 | 400 days | 7.30 | 7.25 | 6.75 | 0.15% on tenures of 180 days to 10 years |
| Bank of Maharashtra | 7.90 | 333 days | 7.25 | 7.00 | 7.00 | , |
| Canara Bank | 7.75 | 444 days | 7.35 | 7.30 | 7.20 | 0.10% on tenure of 444 days |
| Central Bank of India | 7.95 | 444 days | 7.35 | 7.25 | 7.00 | , |
| Indian Bank | 7.80 | 1 year to 375 days | 6.60 | 6.75 | 6.75 | 0.25% on all tenures |
| Indian Overseas Bank | 7.80 | 444 days | 7.60 | 7.00 | 7.00 | 0.25% on all tenures |
| Punjab National Bank | 7.75 | 400 days | 7.30 | 7.50 | 7.00 | 0.30% for tenures up to 5 years |
| Punjab & Sind Bank | 7.95 | 555 days | 6.80 | 6.50 | 6.50 | 0.15% on tenure of 222 days, 333 days, 444 days, 555 days, 777 days & 999 days |
| State Bank of India | 7.75 | 444 days – Amrit Vrishti | 7.30 | 7.25 | 7.50 | , |
| Union Bank of India | 7.90 | 333 days | 7.30 | 7.20 | 7.00 | 0.25% on all tenures |
| Note: *Depositors aged 80 years and above | ||||||
| Source: Paisabazaar.com | ||||||
| Interest rates as of 23rd October 2024 | ||||||
,Note:This list related to senior citizen FD rates has been prepared by Paisa Bazaar. The updates on the rates offered by the banks included in the list are till October 23. Banks keep changing their rates from time to time. In such a situation, investors are advised to get accurate information from their official website or branch before investing money in any bank FD scheme included in the list.
These days, the interest rates on FDs of different tenures in banks are much better. In such a situation, investing in Senior Citizens FD now can be a profitable deal. By investing in long-term FD, senior citizens can get guaranteed returns while keeping their savings safe.
