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:
Suggested reading Fixed Deposit Interest Calculator
Suggested reading All Banks FD Rates for Senior Citizens for Different Tenures
(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Amount deposited in bank FD can be withdrawn prematurely also, if required by paying a nominal penalty.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)
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:
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
Nellore District Cooperative Central Bank Ltd | 10.00 | 110381 |
Kashi Gomti Samyut Gramin Bank | 9.55 | 109897 |
Idukki District Cooperative Bank | 9.25 | 109576 |
ESAF Small Finance Bank Limited | 9.25 | 109576 |
Rajarambapu Sahakari Bank Ltd | 9.00 | 109308 |
Rupee Cooperative Bank Ltd. | 9.00 | 109308 |
Samarth Sahakari Bank Ltd | 9.00 | 109308 |
Equitas Small Finance Bank Limited | 9.00 | 109308 |
North East Small Finance Bank Limited | 9.00 | 109308 |
Suryoday Small Finance Bank | 9.00 | 109308 |
Utkarsh Small Finance Bank | 9.00 | 109308 |
Ujjivan Small Finance Bank Limited | 8.80 | 109095 |
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
Amanath Cooperative Bank Ltd | 9.75 | 133508 |
Nellore District Cooperative Central Bank Ltd | 9.75 | 133508 |
Kashi Gomti Samyut Gramin Bank | 9.55 | 132728 |
Fincare Small Finance Bank Ltd | 9.50 | 132534 |
Equitas Small Finance Bank Limited | 9.30 | 131759 |
Suryoday Small Finance Bank | 9.25 | 131566 |
Janalaxmi Coop Bank | 9.00 | 130605 |
Rajarambapu Sahakari Bank Ltd | 9.00 | 130605 |
Idukki District Cooperative Bank | 9.00 | 130605 |
The Pandharpur Urban Coop Bank Ltd | 9.00 | 130605 |
AU Small Finance Bank Limited | 9.00 | 130605 |
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
Amanath Cooperative Bank Ltd | 9.75 | 161875 |
Nellore District Cooperative Central Bank Ltd | 9.75 | 161875 |
Kashi Gomti Samyut Gramin Bank | 9.50 | 159911 |
Rajarambapu Sahakari Bank Ltd | 9.50 | 159911 |
Idukki District Cooperative Bank | 9.00 | 130605 |
The Pandharpur Urban Coop Bank Ltd | 9.00 | 130605 |
The Varachha Cooperative Bank Limited | 9.00 | 130605 |
Kakinada District Cooperative Central Bank Ltd | 8.75 | 154154 |
Idfc Bank Limited | 8.75 | 154154 |
Deustche Bank | 8.75 | 154154 |
Rupee Cooperative Bank Ltd | 8.75 | 154154 |
Suryoday Small Finance Bank | 8.75 | 154154 |
Suggested reading Highest FD Rates for 1 year for General Public
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
State Bank of India | 7.35 | 143931 |
IDBI Bank | 7.35 | 143931 |
Union Bank of India | 7.35 | 143931 |
Vijaya Bank | 7.30 | 143578 |
Indian Overseas Bank | 7.30 | 143578 |
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
IDFC Bank Limited | 8.75 | 154154 |
DCB Bank Limited | 8.25 | 150426 |
Laxmi Vilas Bank | 8.25 | 150426 |
RBL Bank Limited | 8.10 | 149325 |
Indusind Bank | 8.00 | 148595 |
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
Kashi Gomti Samyut Gramin Bank | 9.5 | 159911 |
Saurashtra Gramin Bank | 8.00 | 148595 |
Pandyan Grama Bank | 7.75 | 146784 |
Andhra Pragathi Grameena Bank | 7.50 | 144995 |
Chaitanya Godavari Grameena Bank | 7.50 | 144995 |
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
Amanath Cooperative Bank Ltd | 9.75 | 161875 |
Nellore District Cooperative Central Bank Ltd | 9.75 | 161875 |
Rajarambapu Sahakari Bank Ltd | 9.50 | 159911 |
Idukki District Cooperative Bank | 9.00 | 156051 |
The Pandharpur Urban Coop Bank Ltd | 9.00 | 156051 |
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
The Chhattisgarh Rajyasahakari Bank Maryadit | 8.10 | 156051 |
The Manipur State Co Op Bank Ltd | 8.10 | 156051 |
The Punjab State Co Op Bank | 8.00 | 148595 |
The Bihar State Cooperative Bank Ltd | 8.00 | 148595 |
Madhya Pradesh Rajya Sahakari Bank Maryadit | 7.90 | 147868 |
Bank Name | Interest Rate (%) compounded quarterly | What Rs 1 Lakh will grow to |
---|---|---|
Suryoday Small Finance Bank | 8.75 | 154154 |
AU Small Finance Bank | 8.50 | 154154 |
Utkarsh Small Finance Bank | 8.50 | 154154 |
Capital Small Finance Bank | 8.00 | 148595 |
Equitas Small Finance Bank | 7.50 | 144995 |
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.
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