FINANCE

Senior Citizen Fixed Deposits: Interest rates from SBI, HDFC, ICICI, PNB and other major banks

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:

Also Read- SBI Amrit Kalash FD: Hurry up! Last few days to book special fixed deposit plan – Check rates, tenors

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.

Read More: NPS Vatsalya calculator: Investment of Rs 10,000 can give you Rs 11 crore when your kid is 60 yrs

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While FDs can be withdrawn prematurely with a penalty, they can also be used as collateral for loans, adding to their versatility.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

Read More: Canara Robeco Consumer Trends Fund: Turning Rs 10,000 SIP into Rs 88 lakh in 15 years!

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.

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