Senior Citizen Fixed Deposits: Interest rates from SBI, HDFC, ICICI, PNB and other major banks
Senior Citizen Fixed Deposits offer higher interest rates, flexible tenures, and tax-saving benefits. With low-risk and guaranteed returns, they are a reliable investment option from banks like SBI, HDFC, and ICICI.
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Interest Rates from SBI, HDFC, ICICI, PNB and more
As banks continue to offer attractive financial products for senior citizens, Fixed Deposits (FDs) remain a popular choice due to their higher interest rates and added benefits. Senior Citizen FDs provide flexible tenures ranging from 7 days to 10 years, early withdrawal options, and tax-saving benefits under Section 80C for deposits with a 5-year tenure. Below are the latest interest rates offered by some of India's major banks:
Bank Interest Rates for Senior Citizen Fixed Deposits
- State Bank of India (SBI): 7.75% for 444 days
- HDFC Bank: 7.9% for 4 years and 7 months (55 months)
- Axis Bank: 7.75% for 5 to 10 years
- Punjab National Bank (PNB): 7.75% for 400 days
- Bank of India (BOI): 7.8% for 666 days
- ICICI Bank: 7.8% for 15 months to less than 18 months
- Canara Bank: 7.75% for 444 days
- Bank of Baroda (BOB): 7.75% for 399 days
Higher Interest Rates
Senior Citizen FDs offer a premium on interest rates, typically 0.25% to 0.65% higher than regular deposits.
Flexible Tenure
These deposits come with tenures ranging from 7 days to 10 years, giving individuals flexibility based on their financial needs.
Premature Withdrawals & Loans
While FDs can be withdrawn prematurely with a penalty, they can also be used as collateral for loans, adding to their versatility.
Nomination & Automatic Renewals
FDs offer a nomination facility, simplifying the claim process, along with automatic renewal options upon maturity.
Tax Savings & Bulk Deposits
A 5-year tenure FD qualifies for tax benefits under Section 80C, and bulk deposits (over Rs. 2 crores) are available but may not always offer better rates.
Key Benefits of Senior Citizen FDs
- Low-Risk Investment: These deposits provide safe, market-independent returns.
- Guaranteed Returns: Senior citizens receive a fixed interest rate throughout the FD's tenure.
- Flexible Interest Payout: Senior citizens can opt for monthly, quarterly, half-yearly, or annual interest payouts.
- Monthly Income Option: Interest from FDs can be converted into a regular income stream.
How to Open a Senior Citizen FD Account
Senior citizens can easily open an FD account by visiting a bank or through online portals. Post offices also offer this service, requiring basic application forms and fund deposits via cheque or demand draft.
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