Senior Citizen Fixed Deposit Interest Rates

Apart from the higher interest rates, the multiple interest payout option helps manage your post-retirement expenses with a regular income. In addition, opting for longer tenors can help you get some of the highest fixed deposit rates for senior citizens.

 

Here are the interest rates offered by various banks and NBFCs for senior citizens FD: 

Bank / NBFCs

Senior Citizen Interest Rates (p.a.)

Bajaj Finance

7.65% - 8.60%

PNB Housing Finance

7.60% - 7.95%

Mahindra Finance

7.65% - 8.30% 

Sundaram Finance

7.95% - 8.25%

LIC Housing Finance

7.50% - 8.00%

State Bank of India

3.50% - 7.60%

Punjab National Bank

4.00% - 7.75%

AU Small Finance Bank

4.25% - 8.50%

Ujjivan Small Finance Bank

4.25% - 8.75%

YES Bank

3.75% - 8.25%

HDFC Bank

3.50% - 7.75%

Axis Bank 

3.50% - 7.85%

IDFC Bank

4.00% - 8.00%

Bank of India

3.50% - 8.00%

Canara Bank

4.00% - 7.75%

RBL Bank

4.00% - 8.30%

Bank of Baroda

3.50% - 7.75%

Special-tenor FD Interest Rates for Senior Citizens

While senior citizens can always enjoy additional interest rates, choosing a special tenor can help them maximise their earnings. Some issuers offer special tenors that come with higher interest rates. 

Bajaj Finance Senior Citizen Special-tenor FD Interest Rates

Special Tenor (in months)

Interest rate at maturity (p.a.)

15

7.70%

18

7.65%

22

7.75%

30

7.70%

33

8.00%

44

8.60%

PNB Housing Finance Senior Citizen FD Interest Rates

Tenor (in months)

Interest rate at maturity (p.a)

12 – 23

7.60%

24 – 35

7.25%

36 – 47

7.95%

48 – 59

7.65%

60 - 71

7.75%

72 - 84

7.65%

120

7.65%

Mahindra Finance Senior Citizen FD Interest Rates

Tenor (in months)

Interest rate at maturity (p.a)

12

7.65%

24

8.00%

36

8.30%

48

8.30%

60

8.30%

Features and Benefits of Senior Citizens Fixed Deposits

  • There are several advantages of booking a senior citizen FD, some of these include: 

  • Guaranteed returns on investments regardless of market fluctuations

  • Higher interest rates for senior citizens

  • Flexible tenors ranging from 7 days to up to 10 years

  • Premature withdrawal facility 

  • Multiple payout options with compounding interest

  • Option to add a nominee 

  • Facility to book tax-saving deposits at special senior citizen interest rates

  • Loan against deposit and sweep-in facility 

  • Tax benefits of up to ₹1.5 Lakhs on the invested amount in a tax-saving deposit as per Section 80C of the Income Tax Act, 1961

How to Open a Senior Citizen Fixed Deposit

Starting a senior citizen fixed deposit involves a straightforward process outlined below:

  • Step 1: Visit Bajaj Markets

  • Step 2: Navigate to the Fixed Deposit page via the ‘Investments’ drop-down menu

  • Step 3: Click on ‘Invest Now’

  • Step 4: Enter your mobile number, date of birth and OTP to verify your account

  • Step 5: Enter the deposit amount, tenure and type of interest payout

  • Step 6: Provide your PAN/Aadhaar or upload the relevant documents to complete your KYC 

  • Step 7: Complete the payment via UPI or NetBanking 

 

You will receive an acknowledgement on your registered email and mobile number within 15 minutes confirming that your deposit has been booked.

Minimum Amount Required to Invest in a Senior Citizen FD

While a few NBFCs maintain a minimum of ₹15,000 to book an FD, others may require you to open an account with just ₹5,000. This varies across issuers, with many banks allowing you to book an FD with amounts as less as ₹1,000. 

 

The table below indicates the minimum amount required by some of the top banks to open a senior citizen FD:

Bank

Minimum Amount

State Bank of India

₹ 1,000

Punjab National Bank 

₹ 1,000

HDFC Bank

₹ 5,000

Axis Bank

₹ 5,000

ICICI Bank

₹ 5,000

For the NBFCs, the minimum amount required is as follows:

NBFC 

Minimum Amount

Bajaj Finance

₹15,000

PNB Housing Finance

₹10,000

Mahindra Finance

₹5,000

Taxes on Senior Citizen Fixed Deposits

1. Saving taxes on interest

TDS will not be applicable on interest income up to ₹50,000 from your FDs in a financial year.

 

Declaring Form 15G and Form 15H will allow the issuer to not deduct any TDS on your interest income in case you do not have taxable income.

2. Saving taxes on the deposit amount

Up to ₹1.50 Lakh of the principal amount is eligible for tax deductions under Section 80C of the Income Tax Act, 1961.

 

Note: Senior citizens above the age of 75 can avoid the hassle of filing income tax by submitting Form 12 BBA when booking a term deposit. The form is a declaration that your income is generated only through pension and interest earning. Upon submission of this form, senior citizens are exempted from filing returns.

Compare Fixed Deposit Interest Rates

Partner
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Maximum Interest Rate
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Maximum Tenor
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Minimum Deposit Amount
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Bajaj Finance

8.60% p.a.

60 Months

₹15,000

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PNB Housing Finance

8.15% p.a.

120 Months

₹10,000

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Mahindra Finance Ltd

8.30% p.a.

60 Months

₹5,000

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AU Small Finance Bank

8.50% p.a.

120 Months

₹1,000

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YES Bank

8.00% p.a.

120 Months

₹10,000

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Ujjivan Small Finance Bank

8.75% p.a.

120 Months

₹1,000

View More

Disclaimer

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.

Latest Senior Citizen FD News

Senior Citizen FD Interest Rate Hiked after SCSS Limit Hike

After the Union Budget of 2023 increased the limit of investment under the Post Office Monthly Income Scheme (POMIS and Senior Citizen Savings Scheme (SCSS), some banks have raised their Fixed Deposit rates to attract senior citizens and others.

 

The banks to announce fixed deposit rate hikes lately are Jana Small Finance Bank and Bandhan Bank. Bandhan Bank increased its fixed deposit rates by 50 basis points on 6th February, 2023. The revised fixed deposit rates will be applicable for deposits of up to Rs.2 crores. Jana Small Finance Bank also hiked its  interest rates for regular FDs, effective from 1st February, 2023 and on Fixed Deposit Plus scheme from 6th February, 2023.

 

- Feb 17, 2023

FAQs

Who is eligible to open a fixed Deposit for senior citizens?

Individuals above 60 years are eligible to book a senior citizen term deposit scheme.

Does investing in bulk amounts attract additional FD interest rates for senior citizens?

This depends on the issuer. However, financial institutions, generally, do not offer additional interest rates on deposits exceeding ₹2 Crores.

Can I start a joint FD with a non-senior citizen?

Yes, you can book a senior citizen FD with a non-senior citizen. However, the primary holder has to be a senior citizen to avail of the benefits of senior citizen FD rates.

If a senior citizen wishes to book more than one FD, do they need to submit age proof?

Yes, you will be required to submit your age proof each time you book an FD.

Are there senior citizen fixed deposits for NRIs?

Yes, there are banks/NBFCs which offer senior citizen FDs for NRIs. One such NFBC is the Bajaj Finance Limited which offers fixed deposits for NRIs with the same interest rates as for the Indian citizens.

Can I renew my senior citizen FD?

Yes, you can renew/reinvest your senior citizen fixed deposit. Most issuers give you the option for FD renewal at the time of investing. You can also choose to reinvest your FD amount during the tenor. However, you will be required to opt for the same before a particular time set by the issuer.

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