Fixed Deposit (FD) is a popular investment option for senior citizens. It helps them earn fixed interest rates on their deposits and accumulate wealth for their retirement. Before investing money, they should compare the interest rates offered by different banks.
New Delhi: Senior citizens prefer to keep their money in fixed deposits (FD). This is an attractive investment option for them. Both public and private sector banks offer them special FD schemes. Senior citizens can take advantage of these FD schemes by comparing interest rates. Senior citizens can earn up to 8.1% interest on three-year FD. This rate is applicable on deposits up to Rs 2 crore. Senior citizens looking to invest should take advantage of the high interest rates prevailing in the market. Here we have told about the interest rates offered by different banks on three-year FD for senior citizens.
Interest rates comparison
| Name of bank | Rate of interest |
|---|---|
| DCB Bank | 8.10% |
| RBL Bank | 8.00% |
| YES BANK | 8.00% |
| Bandhan Bank | 7.75% |
| Bank of Baroda | 7.75% |
| IDFC Bank | 7.75% |
| IndusInd Bank | 7.75% |
| Axis Bank | 7.60% |
| Kotak Mahindra Bank | 7.60% |
| Punjab National Bank | 7.50% |
| HDFC Bank | 7.50% |
| ICICI Bank | 7.50% |
Some benefits of FD for senior citizens
Higher interest rates: Senior citizens get higher interest rates compared to regular FDs. Some banks also offer special FD schemes for senior citizens that offer even higher interest rates.
Tax Benefits: Senior citizens get tax benefits on the interest income earned on FDs. They can avail tax exemption on interest income up to ₹50,000 under Section 80TTA.
Security: FDs are insured by the Deposit Insurance Corporation of India (DIC), which protects deposits up to Rs 5 lakh.
Regular flow of income: The interest earned from FD provides a regular flow of income for senior citizens.
Flexibility: FDs are available for different tenures, so senior citizens can choose the plan as per their needs.
