SBI vs HDFC Bank vs Axis Bank 5-year Senior Citizen FD: Know which is offering highest return on investments of Rs 5 lakh and Rs 10 lakh

SBI vs HDFC Bank vs Axis Bank 5-year Senior Citizen FD: A lot of senior citizens invest in fixed deposit (FD) schemes as part of their retirement planning. Investments in FDs provide them with guaranteed return, and the risk in the non-market-linked investment scheme has minimum risk. Investments in the 5-year FD also provide investors with tax benefits.

Among traditional fixed deposit schemes, banks provide their highest interest rate to senior citizens in the 5-year FD. Photo: Pixabay/Representational

SBI vs HDFC Bank vs Axis Bank 5-year Senior Citizen FD: Fixed deposit (FD) schemes are a popular investment tool for senior citizens as many consider it part of their retirement planning. On a one-time investment, they get guaranteed returns in the form of interest.

They can get it on maturity, or monthly, quarterly, half-yearly, or yearly.

Since FD is a non-market-linked product, senior citizens consider it a comparatively safer investment option compared to many market-linked schemes that may provide higher returns.

Banks encourage senior citizens to invest in FDs, so they provide higher FD interest rates to senior citizens compared to what they offer to general citizens.

5-year FD for senior citizens

Among traditional FDs, banks provide their highest interest rate to senior citizens in the 5-year FD.

Investments up to Rs 1.50 lakh in a financial year in a 5-year FD are also eligible for tax benefits under Section 80C of the Income Tax Act.

Here we discuss the interest rates that State Bank of India (SBI), HDFC Bank, and Axis Bank provide to senior citizens in their respective 5-year FDs.

Also know what senior citizens will get in maturity if they invest Rs 5 lakh and Rs 10 lakh, respectively, in the 5-year FD of all 3 banks.

SBI Senior Citizen 5-year FD interest rate

The country's top lender offers 7.50 per cent interest rate to senior citizens in its 5-year FD.

HDFC Bank 5-year FD interest rate

HDFC Bank also offers 7.50 per cent interest rate to senior citizens in its 5-year FD.

Axis Bank 5-year FD interest rate

Axis Bank offers a higher interest rate than the other two at 7.75 per cent in its 5-year FD for senior citizens.

SBI Senior Citizen 5-year FD: Interest on Rs 5 lakh investment

The estimated interest on a Rs 5 lakh investment in SBI Senior Citizen FD will be Rs 2,24,974.01, and the estimated maturity amount will be Rs 7,24,974.01.

SBI Senior Citizen 5-year FD: Interest on Rs 10 lakh investment

Senior citizens will get estimated return of Rs 4,49,948.03 and an estimated maturity amount of Rs 14,49,948.03 on investing Rs 10 lakh.

HDFC Bank Senior Citizen 5-year FD: Interest on Rs 5 lakh investment

The estimated interest on investing Rs 5 lakh in the HDFC Bank senior citizen FD will be Rs 2,24,974.01, while the estimated maturity amount will be Rs 7,24,974.01

HDFC Bank Senior Citizen 5-year FD: Interest on Rs 10 lakh investment

Senior citizens will get estimated interest of Rs 4,49,948.03 and estimated maturity of Rs 14,49,948.03 if they invest Rs 10 lakh in the HDFC Bank FD.