Senior Citizen FD

Apart from the higher interest rates, the multiple interest payout option helps manage your post-retirement expenses with a regular income. In addition, opting for longer tenors can help you get some of the highest fixed deposit rates for senior citizens.

Here are the interest rates offered by various banks and NBFCs for senior citizens FD: 

While senior citizens can always enjoy additional interest rates, choosing a special tenor can help them maximise their earnings. Some issuers offer special tenors that come with higher interest rates. 

Bajaj Finance Senior Citizen Special-tenor FD Interest Rates

PNB Housing Finance Senior Citizen FD Interest Rates

Mahindra Finance Senior Citizen FD Interest Rates

• There are several advantages of booking a senior citizen FD, some of these include: 

• Guaranteed returns on investments regardless of market fluctuations

• Higher interest rates for senior citizens

• Flexible tenors ranging from 7 days to up to 10 years

• Premature withdrawal facility 

• Multiple payout options with compounding interest

• Option to add a nominee 

• Facility to book tax-saving deposits at special senior citizen interest rates

• Loan against deposit and sweep-in facility 

• Tax benefits of up to ₹1.5 Lakhs on the invested amount in a tax-saving deposit as per Section 80C of the Income Tax Act, 1961

Starting a senior citizen fixed deposit involves a straightforward process outlined below:

• Step 1: Visit Bajaj Markets

• Step 2: Navigate to the Fixed Deposit page via the ‘Investments’ drop-down menu

• Step 3: Click on ‘Invest Now’

• Step 4: Enter your mobile number, date of birth and OTP to verify your account

• Step 5: Enter the deposit amount, tenure and type of interest payout

• Step 6: Provide your PAN/Aadhaar or upload the relevant documents to complete your KYC 

• Step 7: Complete the payment via UPI or NetBanking 

You will receive an acknowledgement on your registered email and mobile number within 15 minutes confirming that your deposit has been booked.

While a few NBFCs maintain a minimum of ₹15,000 to book an FD, others may require you to open an account with just ₹5,000. This varies across issuers, with many banks allowing you to book an FD with amounts as less as ₹1,000. 

The table below indicates the minimum amount required by some of the top banks to open a senior citizen FD:

For the NBFCs, the minimum amount required is as follows:

1. Saving taxes on interest

TDS will not be applicable on interest income up to ₹50,000 from your FDs in a financial year.

Declaring Form 15G and Form 15H will allow the issuer to not deduct any TDS on your interest income in case you do not have taxable income.

2. Saving taxes on the deposit amount

Up to ₹1.50 Lakh of the principal amount is eligible for tax deductions under Section 80C of the Income Tax Act, 1961.

Note: Senior citizens above the age of 75 can avoid the hassle of filing income tax by submitting Form 12 BBA when booking a term deposit. The form is a declaration that your income is generated only through pension and interest earning. Upon submission of this form, senior citizens are exempted from filing returns.

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.