Fixed deposit is one of the most popular senior citizen saving schemes in India. Many banks and NBFCs offer senior citizen fixed deposits to individuals aged above 60. These fixed deposit schemes come with an additional rate of interest, typically up to 0.5% more than normal fixed deposits. By opening fixed deposit accounts, senior citizens can receive a steady and reliable income stream in the form of interest rates. Let’s explore the best fixed deposits for senior citizens in 2022.
Fixed Deposit Rates for Senior Citizens – Public Sector Banks
Fixed deposit interest rates by top public sectors banks are given below:
| Bank | 1-Year | 3-Year | 5-Year |
|---|---|---|---|
| State Bank of India | 5.10% | 6.00% | 6.10% |
| Bank of Baroda | 5.80% | 6.00% | 6.50% |
| Bank of Maharashtra | 5.75% | 5.75% | 5.75% |
| Canara Bank | 6.00% | 6.25% | 6.25% |
| Punjab National Bank | 6.00% | 6.10% | 6.25% |
| Union Bank of India | 5.85% | 6.00% | 6.25% |
Note: Fixed deposit rates are subject to periodic changes
Fixed Deposit Rates for Senior Citizens – Private Sector Banks
Fixed deposit interest rates by top public sectors banks are given below:
| Bank | 1-Year | 3-Year | 5-Year |
|---|---|---|---|
| HDFC Bank | 6.00% | 6.00% | 6.60% |
| ICICI Bank | 6.20% | 6.30% | 6.60% |
| Axis Bank | 6.05% | 7.25% | 7.25% |
| IndusInd Bank | 7.00% | 7.50% | 7.50% |
| IDFC First Bank | 7.50% | 7.65% | 7.65% |
| Kotak Mahindra Bank | 6.50% | 6.50% | 6.60% |
| Yes Bank | 6.75% | 7.25% | 7.50% |
Note: Fixed deposit rates are subject to periodic changes
Senior Citizen Fixed Deposits by Small Finance Bank
| Bank | 1-Year | 3-Year | 5-Year |
|---|---|---|---|
| AU Small Finance Bank | 5.85% | 7.40% | 7.40% |
| Ujjivan Small Finance Bank | 7.75% | 7.25% | 7.95% |
| Equitas Small Finance Bank | 7.25% | 7.50% | 6.50% |
| Capital Small Finance Bank | 6.70% | 6.70% | 6.70% |
| Utkarsh Small Finance Bank | 7.90% | 8.25% | 8.25% |
| Shivalik Small Finance Bank | 7.00% | 6.00 | 6.00% |
Features and benefits of Senior Citizen Fixed Deposits
- Fixed deposits offer assured returns, which makes them the most suitable investment avenues for individuals who are the age of 60 and can’t invest in risky assets.
- Banks and other financial institutions offer higher interest rates to senior citizens which leads to an increase in their earnings.
- Flexible deposit amount from Rs. 100 to no limit.
- With a steady and reliable income stream, senior citizens can live a happy post-retirement life.
- Interest rates are determined based on the term of a fixed deposit.
- Normally, the interest rate earned is compounded per quarter and can be credited to the depositor’s account or added to the maturity value of the FD.
- Flexible fixed deposit tenure ranging from 7 days to 10 years.
- Some of these fixed deposits for senior citizens provide tax deductions under section 80C of the IT Act.
- With these fixed deposits, senior citizens can receive interest in their savings accounts on a frequent basis – monthly, quarterly, half yearly or yearly – as a source of supplementary income.
- Senior citizens can appoint a nominee for these deposits.
- Fixed deposits can be closed prematurely, but tax saver fixed deposits don’t allow premature withdrawals and may carry penalties.
Eligibility for Senior Citizen FD
Individuals who are above 60 years can open a senior citizen fixed deposit account. Some banks offer senior citizen fixed deposits for NRIs as well through NRE or NRO accounts. Here are eligibility criteria you need to meet for senior citizen FDs:
- You must have crossed 60 years of age at the time of opening the fixed deposit.
- However, some banks also offer these fixed deposits for customers who are more than 55 years and have taken early retirement.
- NRI customers can also get additional interest on senior citizen fixed deposits. However, this rule may vary from bank to bank.
Documents required for fixed deposit
If you want to open an FD in the same bank where you have a savings account, you can log on to net banking or mobile banking to open an FD account right away. If you want to open with a different bank, you will need to submit the following documents:
Identity card:
- Senior citizen ID card
- Voter’s ID card
- Driving license
- PAN card
- Passport
Address proof:
- Utility bill (electricity/ water/ telephone bill)
- Bank statement
- Passport
Which bank is best for fixed deposits for senior citizens?
There are many banks, including public and private sector banks, and small finance banks, which offer senior citizen fixed deposits. Interest rates and other features vary from bank to bank. You can compare key features of fixed deposits offered by different banks to find the best fixed deposit scheme. Here are top 5 senior citizen FD schemes:
- SBI Wecare Fixed Deposit Scheme
- HDFC Senior Citizen Care FD
- ICICI Bank Golden Years
- Naman Senior Citizen Deposit
There are different types of fixed deposits that offer varied returns. Because of confusion and a lengthy process and lots of documents required to apply for NRI FD accounts, NRIs living away from India may face several challenges. At SBNRI, we understand this struggle. You can download SBNRI App to apply for a corporate as well as bank fixed deposit account with nominal documentation with a smooth procedure.
You can also click on the button below for more information and to apply for an NRI FD account. Visit our blog and YouTube Channel for more details.
FAQs
Indian citizens aged 60 years and above can open a senior citizen fixed deposit account.
Normally, banks offer an additional interest rate up to 0.50% over and above the prevailing interest on fixed deposits for the general public. However, it may vary from bank to bank.
Senior citizens don’t need to pay tax on FD interest up to Rs. 50,000.
Yes. However, the primary account holder must be a senior citizen.
SBI FD interest rates for senior citizens range from 3.40% to 6.45% w.e.f. 13 August 2022.
Yes. Individuals who are above the age of 80 years, also known as super senior citizens, are offered higher rates on fixed deposits than senior citizens.
