Highest Interest Rates on Senior Citizen FD: Fixed deposits (FDs) have been popular among investors for a long time. It is especially popular among senior citizens who want stable and regular income even after retirement. Fixed deposit schemes have been a popular investment option among such people. Senior citizen FDs are specially designed to meet the needs of this demographic, offering higher interest rates and other benefits. However, before investing in senior citizen FDs, it is important to understand its nuances and considerations to make it as profitable as possible.
What is Senior Citizen FD?
Senior Citizen FDs are fixed deposit schemes offered by banks and financial institutions specifically for people of a certain age group, usually 60 years and above. The interest rates on Senior Citizen FDs are higher than those on regular FDs, this investment option is for those who have retired or have crossed the age of 60 and want regular and stable income on their savings.
Know the benefits of Senior Citizen FD before investing
Senior citizens get more interest on FD
Senior Citizen FDs usually offer 0.25% to 0.75% higher interest rate than regular FDs. This additional interest can boost your income significantly, especially in the long term.
Stable returns
FDs are known for their stable and guaranteed returns, making them a preferred choice for risk-averse investors, especially senior citizens.
Regular Income
Many senior citizens, especially after retirement, consider FD interest as a stable income source. FD interest payments can be monthly, quarterly, half-yearly or annually, providing flexibility depending on your cash flow needs.
Tax Benefits
Senior citizens are eligible to claim tax deduction on interest earned on deposits in bank or post office FD schemes under section 80TTB of the Income Tax Act. This helps retired people save money.
Retired investors or investors who have completed 60 years of age and want a stable income on their savings can earn good returns by investing in senior citizen FDs. By considering various factors like higher interest rates, tax benefits, senior citizens can customize their FD investments to meet their financial goals. It gives guaranteed returns and the investment amount is also safe. Portfolio diversification can be done by investing your savings in FDs and other investment options. By doing this, the benefit of higher returns can also be availed.
The table below compares senior citizen FD interest rates and applicable tenures. You can choose the appropriate option by comparing FD schemes and interest rates of different banks as per your financial goals and needs.
| Name of the Bank | Annual Interest Rate on Senior Citizen FD | ||||
| Where is the most interest being received? | Interest on 1 Year FD (%) | Interest on 3 Year FD (%) | Interest on 5 Year FD (%) | ||
| Interest (%) | Tenure | ||||
| Small Finance Bank | |||||
| AU Small Finance Bank | 8.5 | 18 months | 7.75 | 8 | 7.75 |
| Equitas Small Finance Bank | 9 | 444 days | 8.7 | 8.5 | 7.75 |
| ESAF Small Finance Bank | 8.75 | 2 years to less than 3 years | 6.5 | 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 | 9.5 | 546 days to 1111 days | 7.5 | 9.5 | 6.75 |
| Suryoday Small Finance Bank | 9.1 | Above 2 years to 3 years | 7.35 | 9.1 | 8.75 |
| Ujjivan Small Finance Bank | 8.75 | 12 months | 8.75 | 7.7 | 7.7 |
| Unity Small Finance Bank | 9.5 | 1001 days | 8.35 | 8.65 | 8.65 |
| Utkarsh Small Finance Bank | 9.1 | 2 years to 3 years; 1500 days | 8.6 | 9.1 | 8.35 |
| Private Bank | |||||
| Axis Bank | 7.75 | 5 years to 10 years | 7.2 | 7.6 | 7.75 |
| Bandhan Bank | 8.5 | 1 year 9 months | 7.75 | 7.75 | 6.6 |
| City Union Bank | 8 | 333 days | 7.25 | 6.75 | 6.5 |
| CSB Bank | 7.75 | 401 days | 5.5 | 6.25 | 6.25 |
| indian bank | 8 | 376 days to 540 days | 7.5 | 7 | 7 |
| DCB Bank | 8.55 | 19 months to 20 months | 7.6 | 8.05 | 7.9 |
| Federal Bank | 7.9 | 50 months ; 777 days | 7.3 | 7.5 | 7.25 |
| HDFC Bank | 7.9 | 4 Years 7 Months (55 months) | 7.1 | 7.5 | 7.5 |
| ICICI Bank | 7.8 | 15 months to less than 18 months | 7.2 | 7.5 | 7.5 |
| IDFC First Bank | 8.25 | 500 days | 7 | 7.75 | 7.5 |
| IndusInd Bank | 8.25 | 1 year to 2 years | 8.25 | 7.75 | 7.75 |
| Jammu & Kashmir Bank | 7.5 | 1 year to less than 3 years | 7.5 | 7.25 | 7 |
| Karur Vysya Bank | 8.1 | 760 days | 7.4 | 7.4 | 7.4 |
| Karnataka Bank | 8 | 375 days | 7.85 | 7 | 7 |
| Kotak Mahindra Bank | 7.9 | 390 days to less than 23 months | 7.6 | 7.6 | 6.7 |
| RBL Bank | 8.6 | 500 days | 8 | 8 | 7.6 |
| SBI Bank | 8.75 | More than 18 months to less than 2 years 3 days | 7.55 | 7.8 | 8.25 |
| South Indian Bank | 7.75 | 400 Days | 7.2 | 7.2 | 6.5 |
| Tamilnad Mercantile Bank | 8 | 400 days | 7.5 | 7 | 7 |
| Yes Bank | 8.5 | 18 months | 7.75 | 8 | 8 |
| Government Bank | |||||
| Bank Of Baroda | 7.75 | 399 days | 7.35 | 7.65 | 7.15 |
| Bank Of India | 7.75 | 333 days | 7.3 | 7.25 | 6.75 |
| Maharashtra Bank | 7.75 | 777 days | 7.25 | 7 | 7 |
| Canara Bank | 7.75 | 444 days | 7.35 | 7.3 | 7.2 |
| Central Bank Of India | 7.95 | 444 days | 7.35 | 7.25 | 7 |
| Indian Bank | 7.75 | 400 days -IND SUPER | 6.6 | 6.75 | 6.75 |
| Indian Overseas Bank | 7.8 | 444 days | 7.4 | 7 | 7 |
| Punjab National Bank | 7.75 | 400 days | 7.3 | 7.5 | 7 |
| Punjab & Sind Bank | 7.8 | 666 days | 6.8 | 6.5 | 6.5 |
| State Bank Of India | 7.75 | 444 days | 7.3 | 7.25 | 7.5 |
| Union Bank Of India | 7.9 | 333 days | 7.3 | 7.2 | 7 |
| Source: Paisabazaar.com | |||||
| Interest rates as of 4 September 2024 | |||||
(Note: This list of banks has been prepared by Paisa Bazaar.com. Information related to the interest rate on senior citizen FDs of different tenures has been collected from the official website of the respective banks. All these updates are till September 4. Please note that banks keep changing the rates from time to time. In such a situation, before investing in the FD scheme of any bank, get accurate information on the official website of the concerned bank or your nearest branch.)
