Fixed deposits are often a preferred choice for senior citizens when it comes to investment and financial institutions also understand it very well. Thus to attract senior citizens, the banks often keep making their fixed deposit interest rates lucrative. Since fixed deposits or term deposits or time deposits offer a safe return, it attracts investors who have no appetite for any risk.
Almost every bank provides a higher interest rate for senior citizens. Also, senior citizens get an exemption from taxes as the interest on deposits is tax-exempt under Section 80TTB of the Income Tax Act. This allows senior citizens to claim a deduction of up to Rs 50,000.
SBI FD Interest Rate For Senior Citizens
Just like other banks, the State Bank of India also offers a higher interest rate for Senior Citizens and SBI Pensioners of age 60 years and above as they get an interest of 0.50% above the regular rate. The SBI offers an interest rate of 6.45% for senior citizens for an amount below Rs one crore for the period of five years and up to 10 years.
FD Interest Rate For Senior Citizens in HDFC Bank
The regular fixed deposit interest rate in HDFC Bank starts from 2.75 per cent offered on a deposit of seven to 14 days. However, for the senior citizens, the offered rate is 6.60 percent on a deposit for a tenor of 3 years 1 day- to 5 years. For the period over five years (5 years 1 day – 10 years), the applicable rate is 6.5 percent.
Post Office FD Interest Rate 2022 For Senior Citizens
If senior citizens opt to invest in the FD scheme offered by the India Post, then they will get an interest of 7.4% per annum, ‘payable from the date of deposit of 31st March/30th Sept/31st December in the first instance and thereafter , interest shall be payable on 31st March, 30th June, 30th Sept and 31st December. However, one can do a fixed deposit of a minimum of Rs 1000 and a maximum of Rs 15 lakh only in the post office.
ICICI Bank FD Rates For Senior Citizens
The minimum amount required to open an FD with the ICICI Bank is Rs 10,000. The lender offers a rate of 6.60 per cent on a fixed deposit for senior citizens for any tenor over three years.