4 Best FDs For Senior Citizens With Good Returns Up To 8%
A fixed deposit always continues the most popular among all investment vehicles among individuals with all types of age groups and particularly senior citizens. One of the chief causes, along with the safety and assured returns it offers without any risk, remains the fixed deposit interest rates granted in India to senior citizens. Typically, with an additional interest rate of around 0.50 percent to 0.65 percent based on the bank, elderly people are honored. You can also prefer the frequency of interest payments and gain from the FD investment's high consistency and conveniently monitor your investments. You can also prefer the frequency of interest payments and gain from the FD investment's high consistency and conveniently monitor your investments. There are many banks which offer interest rates on fixed deposits ranging from 7% to 7.5%. (FDs). A few small finance banks deliver attractive interest rates over selected maturities on term deposits to general customers as well as senior citizens.
Jana Small Finance Bank FD
On FDs ranging from 7 days to 10 years, Jana Small Finance Bank provides 2.5 percent to 7.25 percent interest. On these deposits, senior citizens have an additional 50 basis points. For deposits with a maturity period of 3 years or less than 5 years, the bank offers the maximum interest rate. The interest rate 7.25% is for the general public and 7.75% for senior citizens. The bank gives 7 percent on deposits maturing in 1 year to 3 years, and more than 5 years.
| Tenure | ROI in % for general public | ROI in % for senior citizens |
|---|---|---|
| 7-14 days | 2.50% | 3.00% |
| 15-60 days | 3.00% | 3.50% |
| 61-90 days | 3.75% | 4.25% |
| 91-180 days | 4.50% | 5.00% |
| 181-364 days | 6.00% | 6.50% |
| 1 Year 365 Days | 6.75% | 7.25% |
| > 1 Year - 2 Years | 7.00% | 7.50% |
| >2 Years-3 Years | 7.00% | 7.50% |
| > 3 Year- < 5 Years | 7.25% | 7.75% |
| > 5 Years - 10 Years | 6.50% | 7.00% |
North East Small Finance Bank FD
On FDs maturing in 7 days to 10 years, North East Small Finance Bank provides interest rates ranging from 3 percent to 7.5 percent. The bank offers the highest interest rate on deposits maturing up to less than 1095 days in 730 days. These deposits will draw 7.5% interest for general customers and 8% interest for senior citizens. The bank offers 7 percent interest rates on FDs maturing around 365 days to 729 days.
| Tenure | ROI in % for general public | ROI in % for senior citizens |
|---|---|---|
| 7-14 Days | 3.00 | 3.50 |
| 15-29 Days | 3.00 | 3.50 |
| 30-45 Days | 3.25 | 3.75 |
| 46-90 Days | 4.00 | 4.50 |
| 91-180 Days | 4.50 | 5.00 |
| 181-364 Days | 5.25 | 5.75 |
| 365 days to 729 days | 7.00 | 7.50 |
| 730 days to less than 1095 | 7.50 | 8.00 |
| 1096 days to less than 1825 days | 6.50 | 7.00 |
| 1826 days to less than 3650 days | 6.25 | 6.75 |
Suryoday Small Finance Bank FD
For general customers, the Suryoday Bank FD rate varies from 4 percent to 7.50 percent. On deposits maturing in 5 years, the bank offers the best interest rate. These investments will attract a 7.50 percent interest rate. The interest rate of Suryoday Bank FD for senior citizens varies from 4.5 percent to 8 percent. On deposits maturing in 5 years, the bank offers the best interest rate. These deposits will attract an interest rate of 8% respectively.
| Tenure | ROI in % for general public | ROI in % for senior citizens |
|---|---|---|
| 7 days to 14 days | 4.00 | 4.50 |
| 15 days to 45 days | 4.00 | 4.50 |
| 46 days to 90 days | 5.00 | 5.50 |
| 91 days to 6 months | 5.50 | 6.00 |
| Above 6 months to 9 months | 6.25 | 6.75 |
| Above 9 months to less than 1 year | 6.50 | 7.00 |
| 1 years to 2 years | 6.75 | 7.25 |
| Above 2 years to less than 3 years | 7.15 | 7.65 |
| Above 3 years to less than 5 years | 7.25 | 7.75 |
| 5 years | 7.50 | 8.00 |
| Above 5 years to less than 10 years | 7.00 | 7.50 |
Utkarsh Small Finance Bank FD
Utkarsh Small Finance Bank provides the general public with interest rates ranging from 3 percent to 7 percent and 3.50 percent to 7.50 percent for senior citizens on FDs that mature in 7 days to 10 years. With a maturity period of 700 days, the bank offers the best interest rate on deposits. Such deposits will provide 7.5 percent interest for senior citizens. The interest rate will be 7 percent for the general customer.
| Tenure | ROI in % for general public | ROI in % for senior citizens |
|---|---|---|
| 7 Days to 45 Days | 3.00% | 3.50% |
| 46 Days to 90 Days | 3.25% | 3.75% |
| 91 Days to 180 Days | 4.00% | 4.50% |
| 181 Days to 364 Days | 6.00% | 6.50% |
| 365 Days to 699 Days | 6.75% | 7.25% |
| 700 Days | 7.00% | 7.50% |
| 701 Days to 3652 Days | 6.75% | 7.25% |
Eligibility criteria
A resident of India can open a senior citizen's fixed deposit. That being said, NRI senior citizens, with the support of NRE or NRO accounts, can also open these FDs. At the time opening a fixed deposit account, you will need to be over the age of 60 years. Some banks often allow senior citizens over 55 years of age who have retired early or voluntarily to opt for this type of FD scheme. This concept is applicable to specific terms and conditions and can vary from bank to bank.
Taxation
In the context of fixed deposits, banks and NBFCs subtract tax from the accumulated interest before being credited in the hands of the depositor. TDS is charged as the interest accrues, i.e. monthly, quarterly, half-yearly or annually, in the case of cumulative interest payments. Tax is withheld on the received interest for senior citizens @ 10 percent as the interest reaches Rs. 50,000 as compared to Rs. 40,000 for the general public.