Senior Citizen FD: SBI 3-year FD vs PNB 3-year FD vs HDFC Bank 3-year FD; which FD will give highest return on Rs 5 lakh investment
Senior Citizen FD is a term deposit plan for individuals aged 60 and above. Here, we will compare the fixed deposits (FD) of 3 banks: State Bank of India (SBI), Punjab National Bank (PNB), and HDFC Bank to find out which FD will give the highest return to senior citizens on a Rs 5 lakh investment in the respective 3-year FDs.
Fixed deposits (FDs) are a popular non-market-linked, guaranteed return income option. Even if the interest rate falls after you open an FD account, you will continue to receive the interest decided at the start. Senior Citizen FDs are term deposit plans with extra interest rates offered to individuals who are over the age of 60 compared to general citizens.
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(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
Benefits of FD for senior citizens
Senior citizens can choose different interest payout options where interest is credited to the depositor's savings account frequently—either monthly, quarterly, half-yearly, or yearly.
Eligibility for senior citizen FD
If you want to open a senior citizen fixed deposit, then you will need to be a resident of India. You also need to be above the age of 60 years at the time of opening the fixed deposit.
Taxes on senior citizen FDs
Senior citizens can get a deduction of up to Rs 50,000 on their annual income from interest earned on fixed deposits in banks or post office deposits under Section 80 TTB.
SBI 3-year senior citizen FD interest rate
The interest rate is 7.25 per cent for general citizens.
PNB 3-year senior citizen FD interest rate
The interest rate is 7.50 per cent for general citizens.
HDFC Bank 3-year senior citizen FD interest rate
The interest rate is 7.50 per cent for general citizens.
SBI 3-year FD: Maturity amount for senior citizen on Rs 5 lakh investment
An estimated corpus of Rs 6,20,273 will be generated on the investment of Rs 5 lakh in the 3-year fixed deposit for senior citizens.
PNB 3-year FD: Maturity amount for senior citizen on Rs 5 lakh investment
An estimated corpus of Rs 6,24,858 will be generated on the investment of Rs 5 lakh.
HDFC 3-year FD: Maturity amount for senior citizen on Rs 5 lakh investment
With 7.5 per cent rate of interest, an estimated corpus on the investment of Rs 5 lakh would be Rs 6,24,858.