Senior citizen FD: Here are the features & interest rates offered by various banks

• Senior citizen FDs offer special interest rates which tend to be higher than the rate for the general public.
• On FDs, senior citizens can claim tax deductions under section 80C of the IT Act.
• Business Insider India compiles the interest rates offered on Senior citizen FDs by various banks.

Fixed deposit (FD) plans designed specifically for senior citizens are commonly known as senior citizen fixed deposits. These plans are offered by leading banks and are available to individuals who are over 60 years of age. These fixed deposit accounts provide various benefits to senior citizens, including special interest rates. For instance, the interest rate offered on these FDs can be up to 0.50% higher than the rate for the general public.

Senior citizens can opt for regular interest payouts, which can provide a steady and reliable source of income during their post-retirement years. Moreover, they can also avail loans against their FDs, if required. By investing in a 5-year tax-saver fixed deposit, senior citizens can save on taxes and earn additional interest on their investment.

Here is a list of benefits that can be gained from opening senior citizen fixed deposits, such as:

• Senior citizen fixed deposits provide higher special interest rates, leading to increased earnings.
• Senior citizen fixed deposits provide a safe space for money to grow steadily.
• Senior citizen fixed deposits allow the interest earned to be converted into monthly income, providing a sense of security during retirement years.
• Senior citizen fixed deposits can also serve as tax-saver deposits, enabling individuals to claim tax deductions under section 80C of the IT Act.

Senior citizen FD interest rates
As of February 2023, here are some of the best senior citizen fixed deposit rates offered by banks in India.

Bank name	1-year rate of interest	5-year rate of interest
Bank of Maharashtra	7.5 %	7.5 %
DCB Bank	7.75 %	8.35 %
Federal Bank	7.25 %	7.75%
Central Bank of India	7.25%	7.85%
Bank of Baroda	7.25 %	7.55%
City Union Bank	7%	8%
Punjab National Bank	7.25%	7.75%
Indian Overseas Bank	6.9%	7.5%
Union Bank of India	6.8%	7.8%
Bank of India	6.5%	7.55%

Taxes on senior citizen FDs
Interest earned on senior citizen fixed deposits may be subject to income tax as per applicable laws. Such taxes, if applicable, are deducted at the source. However, if an individual is not liable to pay taxes, she can submit forms 15G or 15H to the banks.

If the term deposit is an NRE (non-residential external) deposit, it may not be subject to taxes. However, in the case of NRO (non-resident ordinary) and FCNR (foreign currency non-resident) deposits, the interest earned may be subject to taxes.

SEE ALSO:
Google Chrome rolls out Memory and Energy Saver modes: Here’s how you can use it
OnePlus 11 Concept video reveals a large camera and a rear panel that lights up