Which fixed deposit is best for senior citizens?
- SBI Wecare Fixed Deposit Scheme. ...
- HDFC Senior Citizen Care FD. ...
- ICICI Bank Golden Years.
| Bank | FD Interest Rate for General Citizens | Senior Citizen FD Interest Rates |
|---|---|---|
| Citibank | 1.85% – 3.50% | 2.35% – 4.00% |
| PNB | 3.50% – 6.10% | 4.00% – 6.90% |
| Indian Overseas Bank | 3.60% – 6.40% | 4.10% – 6.90% |
| Bank of India | 3.25% – 5.30% | 3.75% – 5.80% |
| SBI Senior Citizen FD Interest Rates (p.a.) Highlights 2023 | |
|---|---|
| Highest slab rate | 7.60% (400 days) |
| For 4 years | 7.00% |
| For 5 years | 7.50% |
| Tax-Saving FD | 7.50% |
| Tenure | Normal Citizen FD Rate | Senior Citizen FD Rate |
|---|---|---|
| 11 months 30 days - 11 months 30 days | 6.9% | 6.9% |
| 1 year - 2 years 11 months 30 days | 7% | 7% |
| 3 years - 4 years 11 months 29 days | 7.5% | 7.5% |
On senior citizen FDs, Fincare Small Finance Bank offers interest rates between 3.60 per cent and 9.11 per cent for tenure ranging from seven days to 10 years. The highest interest rate of 9.11 per cent is being offered on 750 days tenure. The rates are effective from July 26, 2023.
| FD Scheme | All Bank FD Interest Rates 2023 |
|---|---|
| Axis Bank Tax Saving FD | 6.10% - 6.85% |
| HDFC Bank Tax Saving FD | 6.10% - 6.60% |
| IndusInd Bank Tax Saver Scheme | 6.75% - 7.50% |
| SBI Bank Tax Saving FD | 6.10% - 6.60% |
The online SBI Fixed Deposit calculator shows that senior citizens can double their money by booking an FD for a 10-year tenor. For example, if a senior citizen deposits Rs 50,000 in the 10-year SBI FD, it will grow to Rs 1,05,117 in 10 years. Similarly, Rs 1 lakh will grow to Rs 2,10,234.
- The tenure for the Senior Citizen FDs ranges from 7 days to 20 years.
- Senior Citizen FD rates are usually 0.25% to 0.65% higher than regular FD interest rates.
| Name of the Tax Saving FD | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|
| Union Bank of India Tax Saving FD | 6.70% | 7.20% |
| PNB Tax Saving FD | 6.50% | 7.00% |
| Punjab and Sind Bank Tax Saving FD | 6.50% | 7.00% |
| IDBI Bank Tax Saving FD | 6.50% | 7.00% |
| Bank/NBFC/HFC | Non-Senior Citizen (p.a.) | Monthly Interest Payout |
|---|---|---|
| YES Bank | 7.25% | ₹ 6,042 |
| Jana Small Finance Bank | 7.25% | ₹ 6,042 |
| Kotak Mahindra Bank | 6.20% | ₹ 5,167 |
| SBI | 6.50% | ₹ 5,417 |
What is the difference between bank FD and post office FD?
Tenure: Term deposits in banks range from 7 days to 10 years, while post office fixed deposits have a maximum tenure of 5 years, which can be extended once. Withdrawals: Both bank and post office FDs allow premature withdrawal of funds, but a penalty is involved.
Rs 1 lakh fixed deposit in 1 year: You can earn Rs 6975 as interest on a deposit of Rs 1 lakh for 1 year in Post Office, the FD calculator shows. The interest rate for this duration is 6.8% for senior citizens as well as others.
ESAF Small Finance Bank is offering 9% interest on FDs from 2 years to 3 years. According to the bank's website, these rates are applicable from April 14, 2023. Fincare Small Finance Bank FDs maturing in 500, 750 and 1000 days are fetching interest at the rate of 9, 9.43, 9.21 respectively.
Suppose, you want to invest Rs 50,000 in a fixed deposit at 7 per cent interest rate. Now, divide 72 by the rate of interest (7%) to know the time it will take for Rs 50,000 to become Rs 1 lakh. So, 72/7 will be 10.2 years. Hence, it will take 10.2 years to double your money if the interest rate remains the same at 7%.
In the last 20 years, that is, from 2000 to 2023, the average interest rate in India dropped from 10.50% to 5.90%. The financial market conditions, the RBI policies, and the country's economic conditions accounted for this change.
| Small Finance Bank | Highest interest Rate | Tenure |
|---|---|---|
| AU SFB | 8% | 24-36 months |
| Ujjjivan SFB | 8.45% | 560 days |
| Equitas SFB | 8.5% | 444 days |
| Jana SFB | 8.5% | 1095 days |
| Banks Offering FD | Interest Rate | Tenure |
|---|---|---|
| ICICI Bank | 3.00% - 6.00% | 7 days -10 years |
| Kotak Bank | 2.50% - 5.25% | 7 days - 10 years |
| Punjab National Bank | 3.00%-5.75% | 1-10 years |
| State Bank of India | 3.00% - 5.85% | 7 days-10 years |
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HDFC Bank offers FD rates of 3.00-7.20% p.a. to the general public and 3.50-7.75% p.a. to senior citizens on tenures ranging from 7 days to 10 years. The bank also offers Tax Saving FDs @ 7.00% p.a. for the general public and 7.50% p.a. for senior citizen depositors for the tenures of 5 years.
What is the exemption limit for TDS deduction on FD? The exemption limit for TDS deduction on FDs is Rs. 40,000, which means that if the total interest earned for a financial year on FDs held with one branch of a bank exceeds Rs. 40,000, TDS will be deducted at a rate of 10%.
Which bank gives double the money?
The CENT Double Deposit scheme is offered by the Central Bank of India which is public sector bank running operations across the country.
| Investment Amount | For 3 years with interest of 7% | For 5 years with interest of 7% |
|---|---|---|
| ₹ 50,000 | ₹ 61,646 | ₹ 70,881 |
| ₹ 1 lakh | ₹ 1,23,293 | ₹ 1,41,763 |
| ₹ 2 lakh | ₹ 2,46,585 | ₹ 2,83,525 |
| ₹ 5 lakh | ₹ 6,16,463 | ₹ 7,08,813 |
Senior Citizens' Savings Scheme (SCSS) and bank FDs are preferred investment instruments for postretirement financial security. Most of the banks offer higher interest rates on FDs to senior citizens compared to other customers. SCSS has a maturity period of 5 years.
Only two financial institutions, Landmark Credit Union and Alpena Alcona Area Credit Union, currently offer 7% interest.
| Bank | Interest rate per annum | Tenure |
|---|---|---|
| DBS/POSB | 3.20% | 12 months |
| Maybank | 3.2% (deposit bundle promotion) | 12 months |
| UOB | 3.10% | 6/10/12 months |
| HSBC | 3.00% | 3/6 months |
Senior citizen FDs help you earn a fixed income after retirement. Banks offer higher interest rates on Senior Citizen Fixed Deposits. The Senior Citizen Fixed Deposit is a risk-free investment that guarantees returns.
| FD Scheme | Interest Rate | Senior Citizen Rates |
|---|---|---|
| Bank of Maharashtra FD | 6.35 % | 6.85 % |
| Union Bank of India FD | 6.3 % | 6.8 % |
| Indian Bank FD | 6.1 % | 6.6 % |
| CSB Bank FD | 5 % | 5.5 % |
At present it is 8.20% per annum with effect from 01.04.2023.
| Monthly Interest for 1 Lakh | Bank Name | Interest Rates |
|---|---|---|
| Rs. 654 | Axis Bank | 7.85% |
| Rs. 604 | Central Bank of India | 7.25% |
| Rs. 708 | AU Small Finance Bank | 8.50% |
| Rs. 646 | Bank of Baroda | 7.75% |
Unity Bank continues to offer an interest rate of 9.50% p.a. to senior citizens and 9.00% p.a. to general investors for a tenure of 1001 days. Additionally, for tenures of 181 – 201 days and 501 days, Unity Bank offers an interest rate of 9.25% p.a.to senior citizens and 8.75% p.a. to general investors.
Who offers 12% interest?
| Bank name | Account name | APY |
|---|---|---|
| Ravnaq Bank | 12-month Time Deposit Account | 14% |
| Khan Bank | 365-day, 18-month and 24-month Ordinary Term Savings Account | 12.3% to 12.8% |
| Khan Bank | 12-month, 18-month and 24-month Online Term Deposit Account | 12.4% to 12.9% |
| Yield | N/A | Up to 12% |
Most banks offer between 3 and 7.25 per cent interest rates to investors, depending on the duration of investment in FDs. Senior Citizens Savings Scheme (SCSS): The scheme offers an interest rate of 8.2 per cent to elderly people. The interest on the scheme is also payable quarterly.
Senior citizens who are of or above the age of 60 years are considered eligible for opening a senior citizen FD account. Few banks also consider super senior citizens as well.
SCSS accounts offer several benefits to senior citizens, including tax-free interest of up to Rs. 50,000 earned on quarterly payments. Deposits of up to Rs. 15 lakhs can be made in the account, which matures after five years. Please note that any unpaid quarterly interest will not accrue additional interest.
