Senior Citizen FD Interest Rates Benefits : Senior Citizen Fixed Deposits are term deposit plans. Which are accompanied by special interest rates offered by major banks to individuals above 60 years of age. These Fixed Deposit Accounts provide various types of benefits to Senior Citizens. Also the additional rate of interest it can be 0.50% higher for the general public! The option of regular interest payments can help senior citizens to get a stable and reliable income stream in the post-retirement years.
Senior Citizen FD Interest Rates Benefits ; Senior citizens get so much interest on FD, know here
In order to open a Senior Citizen Fixed Deposit Account in a post office, the depositors need to visit the post office and fill the respective FD form to open the account. ! They have to deposit the investment amount through check or demand draft.
Depositors can also open FD account in banks. Most of the banks accept online form submission. Where individuals can fill and submit their FD account opening form online. The amount of deposit is usually deducted from the preferred savings bank account of the applicant. Senior citizens can also choose this! How they want to get interest! It can be deposited monthly, quarterly or annually.
Senior Citizen Fixed Deposit Interest Rates
Many banks in India offer special fixed deposit accounts tailor-made for senior citizens. High interest rate is paid on their Fixed Deposit! Which is about 0.50% higher than the average FD rate per annum.
- The highest interest rate on Senior Citizen FD is being offered by YES Bank, which is 7.75% p.a. for tenures ranging from 2 years to 3 years!
- For tenures ranging from 1 year to 5 years: Highest interest rates are offered by DCB Bank, IndusInd Bank and Bandhan Bank, with interest rates ranging from 7.00% to 7.50%!
- For tenure of 5 years and above: DCB Bank (7.45% p.a.), IndusInd Bank (7.15% p.a.), Lakshmi Vilas Bank and Bandhan Bank (both 6.50% p.a.) offer
FD Benefits for Senior Citizens (Senior Citizen FD Interest Rates Benefits)
Opening a Senior Citizen Fixed Deposit can have many benefits, the main ones being:
- They offer special interest rates which become higher, leading to more income.
- This creates a safe place for money to grow at a steady pace.
- Senior Citizen Fixed Deposit can also be a Tax Saver Deposit! Which helps in getting tax deduction under section 80C of the IT Act.
- The interest earned on these deposits can be converted into monthly income. Which brings more peace in your retirement years!
- Senior citizens can choose from different interest payment options. Where interest is credited to the savings account of the depositors on a continuous basis – monthly, quarterly, half-yearly or annually.