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Senior Citizen Fixed Deposit Rates as on Apr 2021

Senior Citizens (aged 60 years or more) are offered a higher fixed deposit interest rates by banks as compared to general public. They usually earn 0.25% to 0.75% higher interest compared to regular deposit rates for tenures ranging between 6 months to 10 years. All the resident and NRI senior citizens of 60 years or above are eligible to open Senior Citizen fixed deposit account with the banks. You can easily calculate Senior Citizen FD Interest using FD Interest Rate Calculator.

Senior Citizen Fixed Deposit

Senior citizen FD earns slightly higher returns than interest earned by the general customers. Important features of Senior Citizen Fixed Deposit are as follows:

  • The Income Tax Act defines a senior citizen as a resident individual aged 60 years or above during the financial year. Persons who are aged 60 years or more on the date of investment are eligible for senior citizen fixed deposit.
  • Senior citizens earn 0.25% to 0.75% higher interest than that of general customers.
  • Tenure on senior citizens FD is between 7 days to 10 years in most of the banks.
  • Senior citizens with taxable income up to Rs 5 lakh can claim TDS exemption on bank interest by submitting Form 15H to the bank.
  • Senior citizens are eligible for deduction u/s 80TTB of the Income Tax Act up to a maximum of Rs. 50,000 on interest from fixed deposits with a bank or a co-operative bank or a post office.
  • Senior citizens also can claim exemption of upto Rs 1.5 lakhs per financial year under Section 80C of the Income Tax Act by investing in a tax saver FD but there will be a lock in period of 5 years.
  • Loan against senior citizen FD is allowed.
  • Premature withdrawal of senior citizen FDs will attract penalties.

To assist you to select the best bank for making FD investment, we are providing following table which shows interest rates offered by different banks to senior citizens for a period of 12 months. You can click on "FD Interest Rates" button against a particular bank FD interest rates of all the tenures offered by that bank.

Senior Citizens FD Interest Rates List Apr 2021

Bank NameInterest (1 Year)Find FD Interest
North East Small Finance Bank Limited8.00%Find All FD Interest Rates
Utkarsh Small Finance Bank7.75%Find All FD Interest Rates
Suryoday Small Finance Bank7.75%Find All FD Interest Rates
Equitas Small Finance Bank Limited7.70%Find All FD Interest Rates
Esaf Small Finance Bank Limited7.50%Find All FD Interest Rates
Abu Dhabi Commercial Bank7.50%Find All FD Interest Rates
Rbl Bank Limited7.50%Find All FD Interest Rates
Indusind Bank7.50%Find All FD Interest Rates
Fincare Small Finance Bank Ltd7.45%Find All FD Interest Rates
Idfc Bank Limited7.25%Find All FD Interest Rates
Allahabad Bank7.25%Find All FD Interest Rates
Yes Bank7.25%Find All FD Interest Rates
Bharatiya Mahila Bank Limited7.20%Find All FD Interest Rates
Ujjivan Small Finance Bank Limited7.00%Find All FD Interest Rates
Dcb Bank Limited7.00%Find All FD Interest Rates
Capital Small Finance Bank Limited7.00%Find All FD Interest Rates
Bandhan Bank Limited6.50%Find All FD Interest Rates
United Bank Of India6.50%Find All FD Interest Rates
A B Bank Limited6.50%Find All FD Interest Rates
Laxmi Vilas Bank6.50%Find All FD Interest Rates
Tamilnad Mercantile Bank Limited6.40%Find All FD Interest Rates
Standard Chartered Bank6.30%Find All FD Interest Rates
Punjab And Sind Bank6.05%Find All FD Interest Rates
Au Small Finance Bank Limited6.00%Find All FD Interest Rates
Karur Vysya Bank6.00%Find All FD Interest Rates
Oriental Bank Of Commerce6.00%Find All FD Interest Rates
Punjab National Bank6.00%Find All FD Interest Rates
Syndicate Bank6.00%Find All FD Interest Rates
South Indian Bank6.00%Find All FD Interest Rates
City Union Bank Limited6.00%Find All FD Interest Rates
Federal Bank5.95%Find All FD Interest Rates
Canara Bank5.90%Find All FD Interest Rates
Corporation Bank5.90%Find All FD Interest Rates
Andhra Bank5.90%Find All FD Interest Rates
Union Bank Of India5.90%Find All FD Interest Rates
The Nainital Bank Limited5.90%Find All FD Interest Rates
Karnataka Bank Limited5.90%Find All FD Interest Rates
Bank Of India5.85%Find All FD Interest Rates
Axis Bank5.85%Find All FD Interest Rates
Indian Overseas Bank5.80%Find All FD Interest Rates
Indian Bank5.75%Find All FD Interest Rates
Dhanalakshmi Bank5.75%Find All FD Interest Rates
Idbi Bank5.70%Find All FD Interest Rates
State Bank Of Patiala5.60%Find All FD Interest Rates
State Bank Of India5.60%Find All FD Interest Rates
Bank Of Baroda5.60%Find All FD Interest Rates
Hdfc Bank5.60%Find All FD Interest Rates
State Bank Of Mysore5.60%Find All FD Interest Rates
Jammu And Kashmir Bank Limited5.60%Find All FD Interest Rates
State Bank Of Travancore5.60%Find All FD Interest Rates
Dena Bank5.60%Find All FD Interest Rates
Vijaya Bank5.60%Find All FD Interest Rates
State Bank Of Bikaner And Jaipur5.60%Find All FD Interest Rates
Bank Of Maharashtra5.50%Find All FD Interest Rates
Icici Bank Limited5.50%Find All FD Interest Rates
Central Bank Of India5.50%Find All FD Interest Rates
Catholic Syrian Bank Limited5.25%Find All FD Interest Rates
Kotak Mahindra Bank Limited5.25%Find All FD Interest Rates
Uco Bank5.25%Find All FD Interest Rates
Chinatrust Commercial Bank Limited4.40%Find All FD Interest Rates
Dbs Bank Ltd4.15%Find All FD Interest Rates
Deustche Bank4.00%Find All FD Interest Rates
B N P Paribas4.00%Find All FD Interest Rates
Hsbc Bank3.75%Find All FD Interest Rates
Citi Bank3.50%Find All FD Interest Rates

There are many investment options which are safe and secured like Public Provident Fund (PPF), National Pension Scheme (NPS), EPF, NSC, Bank FD, Bank RD, etc. Bank Fixed Deposit is one of the safe and secured instruments to invest into that offers attractive rate of interest. Easy to open, higher rate of returns, availability of loan and flexibility to withdraw funds when needed are some of the major benefits of Fixed Deposit. Unlike shares, the returns on FD are not related to any market fluctuations hence remain fixed. Banks also offer Recurring Deposit Facility.

Fixed Deposit Account with any bank can be opened easily through a number of channels like Internet (online), Phone Banking or simply by visiting the bank branch.

The interest earned on bank FD can be availed in following 2 ways:

(1) Traditional Plan: Interest is paid on monthly or quarterly basis as required by you.

(2) Reinvestment Plan: Interest is compounded quarterly and reinvested with the principal amount. The interest is paid along with the principal at the time of maturity.

Bank FD is considered to be a beneficial investment option for Senior Citizens due to following reasons:

  • Bank FD is low risk option
  • It generates a fixed return which is very essential for the financial health of senior citizens
  • It is designed to provide financial security to aged people
  • It offers better interest rates to senior citizens
  • It can also become an additional source of income for retired persons
  • There is no upper cap on investment hence senior citizens can invest their life-savings in bank FDs and get safe & fixed returns

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