Banks and NBFCs offer senior citizens an interest rate of 2.50-9.60% per annum. The minimum tenure is 7 days, and the maximum tenure of the fixed deposits is 10 years. Senior citizen FD rates may vary based on the fixed deposit type. An additional interest of 50 bps is offered by some banks over the regular interest rates of fixed deposits. Some banks also give senior citizens a higher interest rate of 7.0% per annum and above.
Interest rates provided by top banks are given in the table below.
| BANK NAME | HIGHEST SLAB | 1 YEAR TENURE | 3 YEARS TENURE | 5 YEARS TENURE |
| Bank of Baroda | 7.75 | 7.25 | 7.55 | 7.15 |
| Bank of India | 7.50 | 7.50 | 7.25 | 6.75 |
| Bank of Maharashtra | 7.50 | 6.85 | 6.50 | 6.25 |
| Canara Bank | 7.65 | 7.25 | 7.00 | 7.00 |
| Central Bank of India | 7.60 | 7.25 | 6.75 | 6.75 |
| Indian Bank | 7.75 | 6.60 | 6.75 | 6.75 |
| Indian Overseas Bank | 7.75 | 7.00 | 7.00 | 7.00 |
| Punjab National Bank | 7.75 | 7.25 | 7.50 | 7.00 |
| Punjab & Sind Bank | 7.85 | 6.90 | 6.75 | 6.75 |
| State Bank of India | 7.60 | 7.30 | 7.00 | 7.50 |
| UCO Bank | 7.55 | 6.75 | 6.80 | 6.70 |
| Union Bank of India | 7.50 | 6.80 | 7.00 | 7.20 |
What is the Eligibility for Senior Citizens FD Account?
The country’s residents above 60 are eligible to apply for senior citizens’ fixed deposits. They can earn high interest with various types of fixed deposits. Senior citizens above the age of 80 can enjoy additional interest rates. Some banks like the Indian Bank and Overseas Bank offer an additional interest rate of 0.75% to the super senior citizens of the country. Banks like Punjab National Bank offer an additional amount of 0.80% per annum to senior citizens.
What Documentation is Required for a Senior Citizen FD Account?
To open a senior citizen’s fixed deposit account, an individual needs to provide some important documents to the bank.
- Aadhar card
- Senior citizen ID card
- Driving license
- Passport
- Voter’s ID card
- Permanent Account Number (PAN)
- Photo ration card
- Telephone bill
- Electricity bill
- Bank statement with cheque
- Certificate/ ID card Issued by post office
What are the Interest Rates for Fixed Deposits?
There are various FD interest rates for senior citizens provided by banks. Senior citizens’ fixed deposit interest rate may vary depending on the type of fixed deposit. The post office FD rates for senior citizens are also attractive and provide a good income.
| BANK NAME | HIGHEST SLAB | 1-YEAR TENURE | 3- YEARS TENURE | 5- YEARS TENURE |
| AU Small Finance Bank | 8.25 | 7.25 | 8.25 | 7.50 |
| Capital Small Finance Bank | 8.25 | 7.80 | 7.80 | 7.75 |
| Equitas Small Finance Bank | 9.00 | 8.70 | 8.70 | 7.75 |
| ESAF Small Finance Bank | 9.00 | 6.50 | 6.50 | 6.75 |
| Fincare Small Finance Bank | 9.11 | 8.10 | 8.10 | 8.60 |
| Jana Small Finance Bank | 9.00 | 7.75 | 7.75 | 6.50 |
| North East Small Finance Bank | 9.25 | 7.25 | 7.25 | 7.25 |
| Shivalik Small Finance Bank | 8.50 | 8.00 | 8.00 | 7.50 |
| Suryoday Small Finance Bank | 9.60 | 7.35 | 7.35 | 9.60 |
| Ujjivan Small Finance Bank | 8.75 | 8.75 | 8.75 | 7.70 |
What Happens on Premature Withdrawal of Funds?
Fixed deposits come with the option of premature withdrawal of funds. Based on the period of the FD before withdrawal, the interest rates will be calculated. A depositor can withdraw funds easily with a penalty of only 1%. The depositor will then receive the amount by following the procedure needed.
Who is Eligible to Avail of the nomination facilities?
Any person can be appointed as a nominee for a senior citizen fixed deposit. Close family members, friends and legal heirs can be appointed as nominees. The nominee must be a citizen of the country and have valid identity proof.
What are the Interest Rates Available to NRI Accounts?
| BANK | 1- YEAR | MORE THAN 1 YEAR- 3 YEARS | MORE THAN 3 YEARS – 5 YEARS | MORE THAN 5 YEARS – 10 YEARS |
| Union Bank of India | 6.30% | 6.30- 7.00% | 6.50%-6.70% | 6.70% |
| Punjab National Bank | 6.80% | 6.80- 7.25% | 6.50% | 6.50% |
| Punjab and Sind Bank | 6.40% | 6.40- 7.35% | 6.25% | 6.25% |
| IDBI Bank | 6.75% | 6.75- 6.50% | 6.50% | 6.25% |
| Canara Bank | 7.00% | 7.25%- 6.85% | 6.80% | 6.70% |
What are the Different Schemes Offered by Different Banks?
Banks offer various schemes to open a fixed deposit for senior citizens. The top 4 schemes to invest in 2023 for senior citizens are:
- SBI WeCare Fixed Deposit Scheme
The scheme has been launched by the State Bank of India, one of the leading banks in the country. In the SBI FD interest rates 2022 for senior citizens, the bank provides an additional interest rate of 50 bps for senior citizens. This will be paid on FDs with a tenure of at least 5 years or above. The SBI senior citizen FD rates are much higher than other banks.
- HDFC Senior Citizen Care FD
The scheme has been launched by HDFC Bank. Under the scheme, the bank provides a premium of 25 bps. Senior citizens who have a fixed deposit with a tenure of 5 days or above can enjoy this benefit. The HDFC senior citizen FD rates are also attractive and preferable.
- ICICI Bank Golden Years
ICICI Bank provides an additional interest rate of 10 bps to senior citizens. The holders of the fixed deposits with a tenure of 5 years and above will receive this benefit.
- IDBI Naman Senior Citizen Deposit Scheme
IDBI Bank offers an interest rate of 0.25% for its senior citizens. And for super senior citizens, the interest rate is 0.50% per annum.
What are the Perks of Opening an FD for Senior Citizens?
There are various benefits of opening an FD for senior citizens. The citizens not only enjoy a higher interest rate, but they get the opportunity to utilise their money in the right way. The citizens also enjoy additional premiums for the fixed deposits. The facility of easy withdrawal of fixed deposits is the biggest advantage for any depositor.
Senior Citizens’ Fixed Deposit Rates FAQ’s :-
Citizens above the age of 60 or more are eligible to open a fixed deposit.
Yes, fixed deposits are a reliable way to save money for the future.
Yes, investments made in FDs are taxable. If the interest earned on FDs crosses INR 50,000, then TDS is charged at 10%.
