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Best FD Rates for Senior Citizens (as on 14 Feb 2019)
By Anupama Deshpande | Feb 15, 2019

Bank FD (Fixed Deposit) is a financial instrument offered by the banks which provides investors a higher rate of interest than a regular savings account. Fixed Deposit is also known as 'Term Deposit' or 'Time Deposit'. In this, the person has to deposit a certain amount in his/ her FD account for a particular tenure. Bank FD gives an to invest a fixed sum of money for different tenures ranging from 7 days to 10 years.

The bank calculates the interest on FD on quarterly basis. Bank FD can be opened by all residents, including minors, senior citizens and HUFs. Senior citizen is a person whose age is 60 or more on the date of investment. Senior citizens can choose any of the following options:

  • Non-cumulative Option: If they wish to receive regular interest payouts to meet their expenses.
  • Cumulative Option: If they want to receive full amount of interest along with the principal amount at the time of maturity.

Suggested reading Fixed Deposit Interest Calculator

Salient Features of Bank FD for Senior Citizens

  • Maximum Investment Amount: No such limit
  • Interest Rates Variable: from 7% to 9.5% based on tenure
  • Interest earned is taxable: Yes
  • Lock in Period: Nil
  • Tenure: 7 Days to 10 Years
  • Income Tax Rebate u/s 80C: Yes upto Rs 1,50,000/- p.a., but on FD with a lock in period of 5 or more years
  • Premature Withdrawals: Entire amount, anytime but after charging a certain penalty
  • Risk: Risky as compared to PPF
  • Interest Compunding: Most banks compound interest quarterly
  • TDS: 10% TDS, if the interest income is more than Rs 10,000 in financial year per bank

Suggested reading All Banks FD Rates for Senior Citizens for Different Tenures

Why is Bank FD beneficial for Senior Citizens?

(1) Regular Fixed Returns

Senior citizen require fixed regular income so bank FD proves to be a good instrument to provide them a regular earning.

(2) Higher Interest Rate

Senior citizens are offered higher interest rates around 0.50% higher interest rate as compared to the general public.

(3) Tax Deduction

A senior citizen can claim up to Rs 50,000 of interest income earned from bank FD as deduction from gross total income before levy of tax.

(4) Liquidity

Amount deposited in bank FD can be withdrawn prematurely also, if required by paying a nominal penalty. Hence there is no lock-in period in bank FD.

(5) Tax Saving FDs

If a senior citizen invests under tax saving FDs i.e. for a tenure of atleast 5 years, then he/ she can claim tax rebate u/s 80C of Income Tax Act.

(6) Avaialability of Loan

Bank FD can be used a security/ collateral to obtail a loan.

(7) Safety

Senior citizens do not want to take risk hence they prefer to invest in bank FDs.

Suggested reading All about Senior Citizen Savings Scheme (SCSS)

Best FD Rates for Senior Citizens (as on 14 Feb 2019)

Before making deposit in bank FD account, it is very important to know abount the best FD Rates for Senior Citizens (as on 14 Feb 2019). For comparing the best bank FD rates for Senior Citizens over different tenures, we have divided into following:

  1. Top 10 Senior Citizens Bank FD Rates (1 year)
  2. Top 10 Senior Citizens Bank FD Rates (3 years)
  3. Top 10 Senior Citizens Bank FD Rates (5 years)

  4. Top 5 Public Banks for FD for Senior Citizens for 5 years
  5. Top 5 Private Banks for FD for Senior Citizens for 5 years
  6. Top 5 Gramin Banks for FD for Senior Citizens for 5 years
  7. Top 5 Cooperative Banks for FD for Senior Citizens for 5 years
  8. Top 5 State Cooperative Banks for FD for Senior Citizens for 5 years
  9. Top 5 Small Finance Banks for FD for Senior Citizens for 5 years

Top 10 Senior Citizens Bank FD Rates (1 Year)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
Nellore District Cooperative Central Bank Ltd10.00110381
Kashi Gomti Samyut Gramin Bank9.55109897
Idukki District Cooperative Bank9.25109576
ESAF Small Finance Bank Limited9.25109576
Rajarambapu Sahakari Bank Ltd9.00109308
Rupee Cooperative Bank Ltd.9.00109308
Samarth Sahakari Bank Ltd9.00109308
Equitas Small Finance Bank Limited9.00109308
North East Small Finance Bank Limited9.00109308
Suryoday Small Finance Bank9.00109308
Utkarsh Small Finance Bank9.00109308
Ujjivan Small Finance Bank Limited8.80109095

Top 10 Senior Citizens Bank FD Rates (3 Years)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
Amanath Cooperative Bank Ltd9.75133508
Nellore District Cooperative Central Bank Ltd9.75133508
Kashi Gomti Samyut Gramin Bank9.55132728
Fincare Small Finance Bank Ltd9.50132534
Equitas Small Finance Bank Limited9.30131759
Suryoday Small Finance Bank9.25131566
Janalaxmi Coop Bank 9.00130605
Rajarambapu Sahakari Bank Ltd9.00130605
Idukki District Cooperative Bank9.00130605
The Pandharpur Urban Coop Bank Ltd9.00130605
AU Small Finance Bank Limited9.00130605

Top 10 Senior Citizens Bank FD Rates (5 Years)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
Amanath Cooperative Bank Ltd9.75161875
Nellore District Cooperative Central Bank Ltd9.75161875
Kashi Gomti Samyut Gramin Bank9.50159911
Rajarambapu Sahakari Bank Ltd9.50159911
Idukki District Cooperative Bank9.00130605
The Pandharpur Urban Coop Bank Ltd9.00130605
The Varachha Cooperative Bank Limited9.00130605
Kakinada District Cooperative Central Bank Ltd8.75154154
Idfc Bank Limited8.75154154
Deustche Bank8.75154154
Rupee Cooperative Bank Ltd8.75154154
Suryoday Small Finance Bank8.75154154

Suggested reading Highest FD Rates for 1 year for General Public

Top 5 Public Banks for FD for Senior Citizens (5 Years)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
State Bank of India7.35143931
IDBI Bank7.35143931
Union Bank of India7.35143931
Vijaya Bank7.30143578
Indian Overseas Bank7.30143578

Top 5 Private Banks for FD for Senior Citizens (5 Years)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
IDFC Bank Limited8.75154154
DCB Bank Limited8.25150426
Laxmi Vilas Bank8.25150426
RBL Bank Limited8.10149325
Indusind Bank8.00148595

Top 5 Gramin Banks for FD for Senior Citizens (5 Years)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
Kashi Gomti Samyut Gramin Bank9.5159911
Saurashtra Gramin Bank8.00148595
Pandyan Grama Bank7.75146784
Andhra Pragathi Grameena Bank7.50144995
Chaitanya Godavari Grameena Bank7.50144995

Top 5 Cooperative Banks for FD for Senior Citizens (5 Years)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
Amanath Cooperative Bank Ltd9.75161875
Nellore District Cooperative Central Bank Ltd9.75161875
Rajarambapu Sahakari Bank Ltd9.50159911
Idukki District Cooperative Bank9.00156051
The Pandharpur Urban Coop Bank Ltd9.00156051

Top 5 State Cooperative Banks for FD for Senior Citizens (5 Years)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
The Chhattisgarh Rajyasahakari Bank Maryadit8.10156051
The Manipur State Co Op Bank Ltd8.10156051
The Punjab State Co Op Bank8.00148595
The Bihar State Cooperative Bank Ltd8.00148595
Madhya Pradesh Rajya Sahakari Bank Maryadit7.90147868

Top 5 Small Finance Banks for FD for Senior Citizens (5 Years)

Bank NameInterest Rate (%) compounded quarterlyWhat Rs 1 Lakh will grow to
Suryoday Small Finance Bank8.75154154
AU Small Finance Bank8.50154154
Utkarsh Small Finance Bank8.50154154
Capital Small Finance Bank8.00148595
Equitas Small Finance Bank7.50144995

Bottomline

It is very essential for senior citizens who want to invest in bank FD to carefully analyse, evaluate and compare significant factors like tenure, interest, premature withdrawal penalty, etc. before choosing the fixed deposit. Above interest rate tables will definitely help you selecting the best bank for FD.

About Anupama Deshpande
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.
Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.
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