Senior Citizen Fixed Deposit
Senior Citizen Fixed Deposits are a type of term deposit offering special interest rates to individuals who are of age 60 or above. Such fixed deposit accounts offer a wide range of advantages to senior citizens. Generally, senior citizens are provided with extra interest rates which are usually around 0.50-0.65%, varying from bank to bank. It also offers flexibility in choosing the frequency of interest payouts along with a high level of stability.
Eligibility for Senior Citizen Fixed Deposit
- For opening a senior citizen fixed deposit account, one has to be an Indian resident. However, NRI senior citizens can also open these accounts through NRE or NRO accounts.
- An individual must be of age 60 years or above at the time of opening of account.
- Some banks offer this type of FD account opening facility to individuals of age 55 years or above. However, this is subject to specific terms and conditions.
Key Features of Senior Citizen Fixed Deposit
- Secure investment option: Since these are RBI-regulated banks, it offers safe investment options for senior citizens.
- Modes of opening: One can open senior citizen fixed deposit accounts via offline and online modes.
- Payout options: One can opt from various payout options from either monthly, quarterly, or yearly options, as per one’s convenience.
- Return options: The return rates vary depending on the bank opted. Irrespective of this, senior citizens are benefited from extra interest rates which are usually around 0.50-0.65%.
- Investment amount: The maximum cap of investment in fixed deposit accounts can range from 1 crore to higher, varying from one bank to another.
Benefits of Senior Citizen Fixed Deposit
- These accounts offer senior citizens a special interest rate which is usually higher, thus offering them more earnings.
- These accounts offer a safe and secure investment option.
- The senior citizen fixed deposits also offer tax benefits under section 80C of the IT Act.
- One can opt from various payout options from either monthly, quarterly, or yearly options, as per convenience.
- These FD accounts also offer premature withdrawal, nomination facility, loan facility, and also sweep-in facility.
Also Read : Shriram Transport FD Rates
Senior Citizen Fixed Deposit Interest Rates in 2022
| Banks | Interest rates offered (p.a.) |
| SBI Bank | 3.50% – 7.25% |
| Axis bank | 3.50% – 7.25% |
| ICICI Bank | 3.50% – 7.10% |
| HDFC Bank | 3.50% – 7.00% |
| IDBI Bank | 3.50% – 7.50% |
| IndusInd Bank | 3.50% – 7.50% |
| Federal Bank | 3.00% – 6.35% |
| Union Bank of India | 4.00% – 7.80% |
| Canara Bank | 3.50% – 6.75% |
Documents required for opening Senior Citizen FD account
- Age proof document: Aadhar card, birth certificate, etc.
- A valid Passport
- Aadhaar Card
- PAN card
- Passport-sized photograph
How can one open a Senior Citizen Fixed Deposit Account ?
Senior Citizen Fixed Deposit Account can be opened via offline and online mode. Most of the banks offer an online FD account opening facility where one can fill and submit the application form for FD account opening online.
For opening an FD account offline, one may choose to open it via post office or any bank, depending upon the needs. One has to visit a nearby bank branch/post office and enquire about the same. He has to fill the FD account opening form and submit it there along with the investment to be made.
Also Read : Mahindra Finance FD Rates
Indusind Bank FD Rates 2022 (w.e.f. 12.08.2022)
| Tenure | Per Annum Interest Rates for General Public (up to Rs. 2 crores) (Domestic /NRO deposits) | Per Annum Interest Rates for Senior Citizens (up to Rs. 2 crores) (Not applicable for NRO deposits) |
| 1 Year to less than 1 Year and 6 Months | 6.25 | 7.00 |
| 1 Year and 6 Months to less than 1 Year and 7 Months | 6.75 | 7.50 |
| 1 Year and 7 Months to less than 2 Years | 6.75 | 7.50 |
| 2 Years to less than 2 Years and 6 Months | 6.75 | 7.50 |
| 2 Years and 6 Months to less than 2 Years and 9 Months | 6.75 | 7.50 |
| 2 Years and 9 Months to less than 3 Years | 6.75 | 7.50 |
| 3 Years to less than 61 Months | 6.75 | 7.50 |
| 61 Months and above | 6.25 | 7.00 |
| Indus Tax Saver Scheme (5 Years) | 6.75 | 7.50 |
Kotak Bank FD Rates 2022 (w.e.f. 01.09.2022)
| Tenure | Per Annum Interest Rates for Regular customers (w.e.f. 1st September 2022) (up to Rs. 2 crores) | Per Annum Interest Rates for Senior Citizens (w.e.f. 1st September 2022) (up to Rs. 2 crores) |
| 365 Days to 389 Days | 5.75 | 6.25 |
| 390 Days (12 Months and 25 days) | 6.00 | 6.50 |
| 391 Days to Less than 23 Months | 6.00 | 6.50 |
| 23 Months | 6.10 | 6.60 |
| 23 Months and 1 Day to less than 2 Years | 6.10 | 6.60 |
| 2 Years to less than 3 Years | 6.00 | 6.50 |
| 3 Years & above but less than 4 Years | 6.00 | 6.50 |
| 4 Years & above but less than 5 Years | 6.00 | 6.50 |
| 5 Years & above up to & inclusive of 10 Years | 6.00 | 6.50 |
Frequently Asked Questions (FAQs)
Q. Do senior citizen fixed deposits have higher interest rates than FDs for regular public ?
A. Yes, most banks as well as non-bank finance companies offer higher interest rates for senior citizens fixed deposits; thus making fixed deposits a lucrative tool of investment for them to grow their money.
Q. What are the fixed deposit interest rates for senior citizens in the post office ?
A. Senior citizen fixed deposits in the post office typically have interest rates of 5.5 to 6.7 percent, depending on the tenure of the deposit.
Q. Which bank or NBFC offers the highest fixed deposit interest rates for senior citizens ?
A. Since interest rates keep on changing, it is difficult to pinpoint any bank or NBFC offering the highest senior citizen fixed deposit interest rates. But there are many organizations offering around or more than 6.50 percent annual FD interest rates for people aged 60 years or above.
Q. Do senior citizens have to pay TDS after opening a senior citizen fixed deposit account ?
A. As a senior citizen, one has to pay TDS (Tax Deducted at Source) in the case when the combined interest for all the fixed deposits in a specific customer ID with a specific bank exceeds Rs50,000 in a financial year.
Currently, which bank is providing the maximum senior citizen FD interest rate? Currently, the highest senior citizen fixed deposit rate which is offered by Fincare Small Finance Bank is 9.50%
Q. Who can open a Senior citizen FD account ?
A. For opening a senior citizen fixed deposit account, one has to be an Indian resident. An individual must be of age 60 years or above at the time of opening of account. Some banks offer this type of FD account opening facility to individuals of age 55 years or above. However, this is subjected to some terms and conditions.
Q. What are the benefits offered by a Senior citizen FD account ?
A. Find the following details below:
- Senior citizen FD accounts offer senior citizens a special interest rate which is usually higher, thus offering them more earnings. These also offer tax benefits under section 80C of the IT Act.
- Also, These FD accounts offer premature withdrawal, nomination facility, loan facility, and also sweep-in facility.
Q. What are the necessary documents required for opening a Senior citizen FD account ?
A. Following documents must be readily available with the customer who is wanting to open a senior citizen FD account:
- Age proof document: Aadhar card, birth certificate, etc.
- A valid Passport
- Aadhaar Card
- PAN card
- Passport-sized photograph
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