Know the latest FD interest rate for senior citizens and invest in the highest interest paying fixed deposit for tenure ranging from 7 days to 10 years
|FD Scheme||1Y ROI||5Y ROI|
|DCB Bank FD||7.65 %||8.5 %|
|Indian Bank FD||7.55 %||7.75 %|
|Bank of Maharashtra FD||7.5 %||7.5 %|
|Canara Bank FD||7.4 %||7.75 %|
|Federal Bank FD||7.3 %||7.8 %|
|Dhanlaxmi Bank FD||7.25 %||7.75 %|
|Central Bank of India FD||7.25 %||7.25 %|
|Bank of Baroda FD||7.25 %||7.75 %|
|City Union Bank FD||7 %||7.5 %|
|Punjab National Bank FD||7.25 %||7.75 %|
|Indian Overseas Bank FD||7 %||7.75 %|
|Union Bank of India FD||6.8 %||7.5 %|
|Bank of India FD||6.5 %||7.75 %|
|Tamilnad Mercantile Bank FD||5.25 %||5.25 %|
|Karnataka Bank FD||4.5 %||4.5 %|
|Karur Vysya Bank FD||4 %||4 %|
|Nainital Bank FD||3.75 %||3.75 %|
|CSB Bank FD||3 %||3 %|
|South Indian Bank FD||3.4 %||3.4 %|
|Punjab and Sind Bank FD||2.8 %||2.8 %|
Senior Citizen Fixed Deposits (FDs) are the most lucrative investment instruments for individuals over 60 years of age. These term deposit plans are offered by leading banks at special FD interest rates. The FDs are accompanied by benefits like steady returns, loans, and tax savings. Individuals can enjoy their post-retirement years without any stress when investing in a Senior Citizen fixed deposit.
Fixed deposits are safe investment options for senior citizens with low or irregular income flow after retirement.
The salient features of senior citizen fixed deposit schemes offered by banks are:
Senior Citizens can invest their lifetime earnings in fixed deposit schemes to avail the following benefits:
Investors can open FD accounts in a few simple steps in any bank, either through offline mode or online mode.
The depositor must visit the nearest bank branch with Proof of Identity, Proof of Address, Age proof document, and Passport size photographs. They will be required to fill an FD account opening request form and furnish the bank account details for depositing money and interest payout.
Depositors can log in to their net banking using their login credentials. Select fixed deposit scheme, tenure, interest payout options, maturity instructions, and bank account to be linked. Upon submission of all details, the request will be processed.
TDS is deducted on the fixed deposit interest amount earned by senior citizens if it exceeds the government prescribed limit of Rs. 50,000 per year. This deduction leads to a lower maturity amount than what is specified in the Fixed Deposit Receipt (FDR). The taxpayer can for sure claim a refund against the TDS deducted at the time of filing the income tax return. Senior Citizens can avoid TDS deduction on their FDs by submitting Form 15H if their taxable income is below Rs. 5 lakhs i.e., their tax liability is NIL.
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Check Out Income Tax For Senior Citizens
Yes, most banks offer higher interest rates of senior citizen FDs compared to regular fixed deposits. This makes FDs the most preferred investment instrument among senior citizens with low or irregular income streams. It efficiently multiplies their wealth and helps them save taxes.
Usually, banks accept Aadhaar, PAN card, Matriculation Certificate, Birth Certificate, and Senior Citizen ID as age proof documents for opening a senior citizen FD.
Interest earned on a senior citizen FD is tax-free up to Rs. 50,000 under section 80TTB of the Income Tax Act, 1961.
Yes bank provides the highest interest rates as 7.50% p.a for senior citizen fd account with tenure above 5 years. Investors must assess their financial needs and purpose of investment before picking the best bank for senior citizens fixed deposits. You must consider factors such as interest rate on FD, ease of access, simplicity in the application procedure, etc. They can visit their preferred bank’s website or contact the nearest branch for personalized assistance
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