Fixed deposits (FDs) have always been a preferred investment choice for senior citizens as they help them earn assured returns without affecting their investments owing to market fluctuations.
Senior citizens also opt for FDs because they usually get higher interest rates than people below 60 years of age. Higher interest rates up to 0.50 per cent are typically offered to senior citizens by most banks, including public and private sector banks.
Interest on bank deposits is tax-exempt u/s 80TTB of the I-T Act. Senior citizens can claim a deduction of up to Rs 50,000. In a financial year, TDS is also not deducted from interest payments up to Rs 50,000.
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However, instead of investing in one fixed deposit, senior citizens should try to open multiple fixed deposit accounts of different amounts and tenures. This will help them reinvest their money at higher returns when the interest rates go up.
Here is a list of the leading banks of the country, including both public and private sector banks, which offer some of the most attractive fixed deposit interest rates tailored for senior citizens:
SENIOR CITIZEN FIXED DEPOSITS
Senior Citizen FD TableBank NameInterest Rates (p.a.)Highest slab1-year tenure (%)3-year tenure (%)5-year tenure (%)%TenurePRIVATE SECTOR BANKSAxis Bank7.7515 months to less than 2 years; 5 years to 10 years7.207.607.75Bandhan Bank8.551 year8.557.756.60City Union Bank8.00333 days7.256.756.50CSB Bank7.75401 days5.506.256.25DBS Bank8.00376 days to 540 days7.507.007.00DCB Bank8.5519 months to 20 months7.608.057.90Federal Bank7.9050 months ; 777 days7.57.67.75HDFC Bank7.904 Year 7 Months (55 months)7.107.507.50ICICI Bank7.8015 months to less than 18 months7.207.507.50IDFC First Bank8.40400 days to 500 days7.007.307.25IndusInd Bank8.491 year 5 months to less than 1 year 6 months8.257.757.75Jammu & Kashmir Bank7.501 year to less than 3 years7.507.257.00Karur Vysya Bank8.10760 days – Special Deposit7.407.407.40Karnataka Bank8.00375 days7.757.007.00Kotak Mahindra Bank7.90390 days to less than 23 months / 390 Days (12 months 25 days)7.607.606.70RBL Bank8.50500 days8.008.007.60SBM Bank India8.75Above 18 months to less than 2 years 3 days7.557.808.25South Indian Bank7.901 year 7 days7.207.206.50Tamilnad Mercantile Bank8.10300 days (TMB300)7.507.007.00YES Bank8.2518 months to less than 24 months7.758.008.00PUBLIC SECTOR BANKSBank of Baroda7.80400 days – Bob Utsav7.357.657.40Bank of India7.80400 days7.307.256.75Bank of Maharashtra7.85333 days7.257.007.00Canara Bank7.93 Years & » Read More
