Senior Citizen FD Rates | Updated High-Return Options

Key Insights
 

1. The Senior citizen FD has a starting tenure of 7 days and a maximum tenure of 10 years.
    
2. You can start a Senior citizen FD with ₹100 and no limit.
    
3. You can earn an extra interest rate on a Senior citizen FD, ranging from 0.25% to 0.75% p.a.

The Fixed Deposit is the most secure investment option for every situation, whether you are salaried, self-employed, or retired; it provides a guaranteed return.

The Senior Citizen FD account offers an additional interest rate that is not affected by market fluctuations. However, which bank is the best for Senior Citizen FD Rates?

My grandfather is 82 years old. He told me that he wants to put ₹4,00,000 in an FD for 3 years. So, I told him that he will get around 0.25% to 0.75% more interest from general FD rates, depending on different bank policies.

He already had an account in PNB, so he opted for FD in PNB for 6.40% interest rate per annum.  

This blog helps you understand the benefits of a Senior citizen FD, and which top bank offers a Senior citizen FD.

Benefits and Features of Senior Citizen Fixed Deposit

The Senior Citizen Fixed Deposit features and benefits give an edge to grow their money without any stress. Here is the list of benefits and features of a senior citizen fd:

• You can choose your Senior citizen FD tenure according to your needs. You can select a minimum of 7 days and a maximum of 10 years.
• You can start with an amount of ₹100, and there is no maximum limit. Different banks offer different features according to the amount.
• In the Senior Citizen FD, you can earn an additional return of 0.25% to 0.75% (the extra return varies according to new schemes).
• You can choose Senior citizen FD from monthly, quarterly, semi-annual, or annual payout options.
• You can get loans on your Fixed Deposit again, depending on your Senior Citizen Fixed Deposit schemes.

These features help senior citizens live their lives without any stress, with a variety of tenures and with a guaranteed interest rate.

Bonus Tip: Do you know? Economic Times reports that senior citizens can earn up to 8.15% on 3-year FDs, with Utkarsh Small Finance Bank offering the highest rate.

Top Bank offering Competitive Senior Citizen Fixed Deposit Rates

The top banks offer a fixed deposit scheme for every senior customer. You can easily open your fixed deposit account in the top bank in India. Here is the list of senior citizen fd rates of the Top Banks in India:
 

These are the competitive interest rates of senior citizens, and in this table, you can find additional senior citizen rates.

Types of Senior Citizen FD Schemes offered by different banks

There are various senior citizen fixed deposit schemes that help senior citizens maximise their financial benefits.

Here is the list of the senior citizen schemes.

1. SBI We-care Deposit Schemes

Senior citizens investing for 1 year can earn a 7.05% return, while the general public can earn 6.55%.

If a senior citizen invests for a 2-year tenure, they can earn a 7.35% return, while the general public can earn 6.85%.

2. Bank of Baroda Senior Citizen FD

Bank of Baroda Senior Citizens Savings Schemes is for those who are over 55 years of age. You can open multiple accounts in this scheme, but the total value of your money across all accounts is limited to 30,00,000. You can get 8.2% on their deposit, and the tenure of the deposit is 5 years and can be further extended by 3 years.

These two schemes offer the competitive benefits of senior citizen fd scheme.

Eligibility Criteria And Required Documents For Senior Citizen Fixed Deposit

Senior citizens can open a fixed deposit if they are 60 years or older at the time of application. Banks accept both residents and, in some cases, retired professionals who receive pensions. Applicants must provide basic identity proof, address proof and recent photographs. 

Banks usually ask for a PAN card, Aadhaar and a document confirming age. A cancelled cheque or bank passbook copy supports account details for interest payouts. Pensioners may also submit their pension order or retirement certificate when required.

Tax Implications on Senior Citizen Fixed Deposit Rates 2025

If you want to know what the tax benefits are for the senior citizen fd, you have to read this section to clear your understanding of the tax.

Here are the tax implications of a senior citizen's fixed deposit rates.
 

• Senior Citizens should be of the age of 75 years or above.
• A Senior Citizen should be a ‘Resident’ in the previous year.
• Senior citizens should have only a pension and interest income, and the interest must come from the same bank where the pension is received.
• The senior citizen will submit a declaration to the specified bank.
• A specified bank, as notified by the Central Government, will handle TDS deductions for senior citizens. The bank will consider deductions under Chapter VI-A and the rebate under Section 87A.
• After the specified bank deducts tax for senior citizens who are 75 years or older, these individuals are exempt from filing income tax returns.

These are the tax implications you can get from fixed deposit rates, which offer an edge to your investment in the senior fixed deposit.

How can you invest in a senior citizen FD?

To open a fixed deposit, visit your bank and complete the KYC forms, providing details like the deposit amount, tenure, and nominee. First, ensure you have a savings account with the bank. Then, sign the application to start your fixed deposit.

The bank will deduct the deposit amount from your savings account and provide you with a fixed deposit receipt that details the maturity date, interest rate, and maturity amount. 

You can choose to receive interest monthly, quarterly, or yearly, or select a cumulative option if you prefer to get all the interest at maturity.

Conclusion

The Senior Citizen fixed deposit account gives you extra interest rates compared to a regular fixed deposit account, and you also get tax benefits.

Different banks offer various types of interest rates and tenures for senior citizens. You can select the banks according to your preference without any fear because the fixed deposit gives you a guaranteed return without the influence of the market.

FAQs

Do senior citizen FD rates change if I open the deposit online instead of visiting a branch?

Yes, some banks offer slightly higher rates on digital FDs booked through internet or mobile banking.

Can senior citizens get higher FD rates by choosing a monthly payout instead of a cumulative plan?

No, payout frequency does not raise the rate, although cumulative plans help earn more through compounding.

Can a senior citizen open multiple FDs in the same bank to maximise interest benefits?

Yes, spreading deposits across tenures helps capture rate changes and manage reinvestment risk.

Is it possible to link a senior citizen FD to a sweep-in facility without affecting interest earnings?

Yes, sweep-in is allowed, but frequent withdrawals may reduce compounding benefits.

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.