As banks continue to offer attractive financial products for senior citizens, Fixed Deposits (FDs) remain a popular choice due to their higher interest rates and added benefits. Senior Citizen FDs provide flexible tenures ranging from 7 days to 10 years, early withdrawal options, and tax-saving benefits under Section 80C for deposits with a 5-year tenure. Below are the latest interest rates offered by some of India’s major banks:

Bank Interest Rates for Senior Citizen Fixed Deposits

• State Bank of India (SBI): 7.75% for 444 days
• HDFC Bank: 7.9% for 4 years and 7 months (55 months)
• Axis Bank: 7.75% for 5 to 10 years
• Punjab National Bank (PNB): 7.75% for 400 days
• Bank of India (BOI): 7.8% for 666 days
• ICICI Bank: 7.8% for 15 months to less than 18 months
• Canara Bank: 7.75% for 444 days
• Bank of Baroda (BOB): 7.75% for 399 days

Higher Interest Rates

Senior Citizen FDs offer a premium on interest rates, typically 0.25% to 0.65% higher than regular deposits.

Flexible Tenure

These deposits come with tenures ranging from 7 days to 10 years, giving individuals flexibility based on their financial needs.

Premature Withdrawals & Loans

While FDs can be withdrawn prematurely with a penalty, they can also be used as collateral for loans, adding to their versatility.

Nomination & Automatic Renewals

FDs offer a nomination facility, simplifying the claim process, along with automatic renewal options upon maturity.

Tax Savings & Bulk Deposits

A 5-year tenure FD qualifies for tax benefits under Section 80C, and bulk deposits (over Rs. 2 crores) are available but may not always offer better rates.

Key Benefits of Senior Citizen FDs

• Low-Risk Investment: These deposits provide safe, market-independent returns.
• Guaranteed Returns: Senior citizens receive a fixed interest rate throughout the FD’s tenure.
• Flexible Interest Payout: Senior citizens can opt for monthly, quarterly, half-yearly, or annual interest payouts.
• Monthly Income Option: Interest from FDs can be converted into a regular income stream.

How to Open a Senior Citizen FD Account

Senior citizens can easily open an FD account by visiting a bank or through online portals. Post offices also offer this service, requiring basic application forms and fund deposits via cheque or demand draft.