Senior citizen FD rates: For senior citizens looking to grow their savings through fixed deposits (FDs), there’s good news: several banks are offering higher interest rates on FDs tailored specifically for them. Plus, seniors benefit from a slightly higher interest rate compared to others and a higher TDS threshold.
It’s important to note that the FD rates mentioned apply to deposit amounts up to Rs 2 crore.
As per an ET report, here are the top interest rates offered by both public and private sector banks:
DCB Bank Senior Citizen FD Rates
DCB Bank, a private sector bank, offers interest rate of 8.6% on FDs maturing between 25 and 26 months.
IDFC First Bank Senior Citizen FD Rates
IDFC First Bank offers an interest rate of 8.5% on FDs maturing in 500 days.
Bandhan Bank Senior Citizen FD Rates
Bandhan Bank provides an interest rate of 8.35% on FDs maturing in one year.
IndusInd Bank Senior Citizen FD Rates
IndusInd Bank offers an interest rate of 8.25% on FDs maturing between one and two years.
ALSO READ | Senior Citizens Savings Scheme vs Bank FDs: Interest rates, tax benefits, and deposit limits compared
YES Bank Senior Citizen FD Rates
YES Bank offers 8.25% interest on FDs maturing between 18 months and less than two years.
DBS Bank India Senior Citizen FD Rates
DBS Bank India provides an interest rate of 8% on FDs maturing between 376 and 540 days.
Similarly, Karur Vysya Bank and Tamilnad Mercantile Bank (TMB) also offer an interest rate of 8% on FDs maturing in 444 days and 400 days, respectively.
Highest interest rates on senior citizen FDs:
| Bank name |
Interest rate |
| DCB Bank | 8.60% |
| IDFC First Bank | 8.50% |
| Bandhan Bank | 8.35% |
| IndusInd Bank | 8.25% |
| YES Bank | 8.25% |
| DBS Bank India | 8% |
| Karur Vysya Bank | 8% |
| Tamilnad Mercantile Bank | 8% |
Source: Paisabazaar.com as quoted by ET
Date: May 8, 2024
TDS Calculation for Senior Citizens
Banks must deduct TDS on fixed deposits if the interest exceeds Rs 50,000 in a year, regardless of the senior citizen’s tax regime. Yet, senior citizens can avoid TDS if their taxable income remains below the basic exemption limit by submitting Form 15H. This form prevents TDS deduction.
Even if TDS is deducted, it’s not lost forever. It’s separate from income tax. If a person’s tax liability is lower than the TDS deducted, the excess TDS will be refunded with interest by the Income Tax Department when filing their ITR.
