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Earn interest up to 8.10% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)

Senior Citizen Fixed Deposit in India 

Fixed deposits are very popular in India as they come with negligible risks and offer you the chance of a fixed monthly income. Once a fixed deposit has been booked at a predetermined interest rate and investment period, no further action needs to be taken on it, and you will get your returns in the frequency that you have chosen, like monthly, quarterly, semi-annually, annually, or at the end of the term. This assurance is what makes FD a great investment instrument for retired people and senior citizens.

 

In India, people above the age of 60 are granted the status Senior Citizens. To give them some additional financial support, the senior citizen FD rates are usually higher than that of the regular ones in the range of 0.2 - 0.5%. Let us take a closer look at them.

Fixed Deposit Annualised Rate Of Interest For Senior Citizens

One of the key benefits of a fixed deposit is that you can use it to earn a regular, guaranteed, monthly income. This helps you manage your household expenses with ease. Both banks and NBFCs offer fixed deposits with varying senior citizen FD rates. 

 

Banks are known for their added security and multipurpose functionality like account and locker facilities. This is one of the reasons why many people choose to open a FD in a bank. In the table provided below you can see the monthly interest you would earn if you invest ₹50 Lakhs for a period of five years and one day in any of the following banks.

Bank

Senior Citizen FD Interest Rate

Monthly Interest Amount

Maturity Amount

State Bank of India

6.65% p.a.

₹ 27,708

₹ 66,62,500

Punjab National Bank 

6.65% p.a.

₹ 27,708

₹ 66,62,500

HDFC Bank

6.75% p.a.

₹ 28,125

₹ 66,87,500

Axis Bank

6.85% p.a.

₹ 28,542

₹ 67,12,500

ICICI Bank

6.75% p.a.

₹ 28,125

₹ 66,87,500

Disclaimer: The aforementioned Bank FD interest rates are valid as of 07-Oct-2022, and may be subject to change as per bank announcements.

 

Non-Banking Financial Companies (NBFCs) also provide the FD facility and in fact, offer some of the highest interest rates on FD for senior citizens, as you can see in the following table.

NBFC 

Senior Citizen FD Interest Rate

Monthly Interest Amount

Maturity Amount

Bajaj Finance

7.85% p.a.

₹ 39,588.28

₹ 73,75,297

PNB Housing Finance

7.65% p.a.

₹ 31,583

₹ 72,95,764

Mahindra Finance

7.75% p.a.

₹ 30,208

₹ 72,62,003

Disclaimer: The aforementioned NBFC FD interest rates are valid as of20th January 2023, and may be subject to change as per NBFC announcements.

 

Special Tenor FD Interest Rates for Senior Citizens

Apart from the abovementioned regular FDs, certain institutions offer special tenor sr. citizen fixed deposit rates. These are cumulative FDs and the total principal plus interest is payable on maturity.

  • Bajaj Finance Senior Citizen FD Scheme:

Tenor in months

15

18

22

30

33

44

Special FD rate at maturity, per annum

7.55%

7.40%

7.70%

7.65%

7.95%

8.10%

  • PNB Housing Finance Senior Citizen FD Scheme:

Tenor in months

12 – 23

24 – 35

36 – 47

48 – 59

60 -71

72-84

120

Special FD rate at maturity, per annum

7.25%

7.05% 

7.80% 

7.65%

7.65%

7.65%

7.65%

  • Mahindra Finance Senior Citizen FD Scheme:

Tenor in months

12

24

30

36

42

48

60

Special FD rate at maturity, per annum

7.00% 

7.50%

7.75%

7.75% 

8.00%

7.50%

7.50%

Minimum Amount Required to Invest in a Senior Citizen FD

FDs offer a lot of flexibility. You can choose your tenor as well as the amount you wish to invest. However, there is a minimum amount requirement to open an FD. Just like the senior citizen FD rates vary between financial institutions, so does their minimum amount requirement. Let’s take a look at the banks first.

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

The information provided in the tables is valid as of 20th January 2023. However, the bank and the NBFC reserves the right to change this requirement any time, as per their policies.

Senior Citizen Fixed Deposit Rates

The senior citizen FD rates not only vary among institutions, but can also within the same one. This is because a vital factor that determines the rate of interest is the investment tenor. Financial institutions offer a lot of flexibility in this regard, but typically you will notice – the higher the investment term, the higher the rate of interest. To help you understand this better, here are the senior citizen FD rates for different investment tenors.

 

  • Top Banks for Senior Citizen FD Rates

Let us look at the senior citizen FD rates for the banks first.

Bank

0-1 Year

1-3 Years

3-5 Years

Above 5 Years

State Bank of India

5.20% p.a.

6.10% p.a.

6.30% p.a.

6.65% p.a.

Punjab National Bank 

6.20% p.a.

6.30% p.a.

6.30% p.a.

6.65% p.a.

HDFC Bank

5.50% p.a.

6.30% p.a.

6.60% p.a.

6.75% p.a.

Axis Bank

5.25% p.a.

6.95% p.a.

6.85% p.a.

6.85% p.a.

ICICI Bank

5.50% p.a.

6.50% p.a.

6.70% p.a.

6.75% p.a.

Disclaimer: The aforementioned Bank FD interest rates are valid as of 07-Oct-2022, and may be subject to change as per bank announcements.

  • NBFCs FD Interest Rates for Senior Citizen

The terms for NBFCs are structured a bit differently as compared to banks. The senior citizen FD rates for varying terms in NBFCs look like this.

NBFC 

1-2 Years

2-3 Years

3-4 Years

4-5 Years

Bajaj Finance

7.40% p.a

7.55% p.a

7.85% p.a

7.85% p.a

PNB Housing Finance

7.25% p.a.

7.05% p.a.

7.80% p.a.

7.65% p.a.

Mahindra Finance

7.50% p.a.

7.75% p.a.

7.75% p.a.

7.75% p.a.

Disclaimer: The aforementioned NBFC FD interest rates are valid as of 20th January 2023, and may be subject to change as per NBFC announcements.

Taxes on Senior Citizen Fixed Deposits

Interest on FD is taxable under the head – Income From Other Sources. This is why banks and NBFCs are authorised to deduct 10% tax at source (TDS) at the end of each financial year. The balance is calculated based on the applicable tax slab that you fall under. However, if your annual income falls below the taxable bracket then you have the option of submitting Form 15H to the financial institution with which you hold the FD. This will waive off the TDS and you will receive the entire amount in your account. 

 

The above information is for a standard senior citizen fixed deposit. If it’s an NRE deposit, then your investment might not be liable to pay any taxes. On the other hand, if it is an NRO or FCNR deposit, the interest income might attract taxes as per the prevalent rates.

Features & Benefits of Senior Citizen Fixed Deposits

Apart from getting higher FD rates, there are several other advantages available to senior citizen FD holders. Here are few of the prominent ones:

 

  • Low Risk: FDs are unaffected by market swings and remain a safe and stable form of investment.

  • Assured Returns: The senior citizen FD rate at which you book the FD will remain constant through its tenor, which means you will get a guaranteed amount as per your chosen frequency. 

  • Flexibility: You can choose the amount you wish to invest, and the period you wish to invest it for as long as it meets the financial institutions minimum criteria. Moreover, you have the freedom to open an FD in any of the several banks and NBFCs that offer it.

  • Convenience: Booking an FD, renewing it, or withdrawing the amount, can all be easily achieved through the online mode. Moreover, once your amount is invested and your instructions regarding maturity or amount payout have been registered, there’s no other action needed from your side, nor do you need to monitor your investment like in the case of mutual funds and shares.

  • Tax Benefits: There are special types of senior citizen FDs (usually with a 5-year lock-in) that can be used for tax saving up to ₹ 1.5 Lakhs under the Section 80C of the Income Tax Act of India.

How to Book a Senior Citizen Fixed Deposit 

Most of the top banks and NBFCs offer the facility to open an online FD from the comfort of your own home in a quick, convenient, and paperless manner. Now that you know the senior citizen FD rates for the leading banks and NBFCs and their benefits, here are the steps to book one:

 

  • Visit the website of the bank or NBFC

  • Click on the FD opening form and provide your date of birth and mobile number

  • Verify OTP

  • Enter your preferred FD type, tenor, payout frequency, investment amount, and bank account

  • Existing customers can simply add nominee details and move forward

  • New customers will need to furnish Aadhaar or PAN and upload the requisite documents for KYC

  • Choose your payment option, pay the amount, and submit. You will shortly receive an SMS and email acknowledgement of your investment.

 

The other option, of course, is to visit the branch office in person, fill-in the form, and submit the requisite documents. Before booking an FD, always compare the different options from banks and NBFCs in order to get the best FD rates for senior citizens.

Eligibility Criteria & Documents Required for Senior Citizen FD

If you want to avail the highest fixed deposit interest rates for senior citizens then you need to open a senior citizen FD account in a bank or an NBFC. For this, you need to:

 

  • Be a resident citizen of India. 

  • Be above 60 years of age at the time of booking the FD.

NRI senior citizens can also start their deposit term through NRE or NRO accounts.

 

The documents you will require for opening a Senior Citizen FD include:

 

  • Document for proof of age - like Passport / Voter’s ID / Driving Licence

  • Document for proof of address and identity - like Passport / Aadhaar Card / Voter’s ID / Driving Licence

  • PAN card

  • Photograph

FAQs

  • ✔️What is the FD rate for senior citizens?

    The senior citizen FD rates vary among different banks and NBFCs and are dependent on the amount and tenor of the deposit. While the rates are usually in the range of 5% to 7% per annum, the highest FD rates for senior citizens can go up to 7.5% to 8% per annum.

  • ✔️What is a senior citizen FD?

    An FD for senior citizens is a term deposit plan for individuals above 60 years of age with special interest rates that are higher than that of non-senior citizens.

  • ✔️Are super-senior citizens offered additional rates of interest for fixed deposits?

    Super-senior citizens are people above the age of 80. The super-senior citizen fixed deposit rates  depend on the specific bank or NBFC’s policies. Some of them do offer marginally additional rates of interest while others do not. You can check this on your bank’s helpline or website.

  • ✔️ Who is a senior citizen?

    An individual above the age of 60 is legally termed as a senior citizen.