Best Rate of Interest on FD to Senior Citizens

Fixed deposits are the most preferred investment avenue for many senior citizens because of the benefits they provide. FD for senior citizen include –

• Capital Safety
  
• Guaranteed returns
  
• Flexible investment periods
  
• Tax-saving by investing in 5-year deposits
  
• Tax-free interest income up to INR 50,000 under the provisions of Section 80TTB of the Income Tax Act
  
• Higher interest rates than those offered to individuals below 60 years of age.

Given these benefits, senior citizens invest their retirement funds in fixed deposit schemes. Moreover, there are various banks and non-banking financial companies (NBFCs) that offer attractive fixed deposit schemes for senior citizens that promise the best rates of interest. Do you know which institutions top the chart? Have a look –

• Bajaj Finserv

Bajaj Finserv is a leading non-banking financial company which offer very good fixed deposit schemes for senior citizens. The interest rates are the best in class. Let’s have a look –

• HDFC Bank

HDFC is a leading banking institution with flexible fixed deposit schemes for its customers. The interest rate promised by the bank for senior citizens include the following –

• Punjab National Bank

A public sector bank, PNB offers good fixed deposit rates to senior citizens and allows deposit tenures for up to 10 years. The applicable interest rates are as follows –

• State Bank of India

SBI is one of the largest banking institutions in the country, offering a variety of deposit options for senior citizen customers. The interest rates on the bank’s deposits are as follows –

• Bank of Baroda

A wide variety of fixed deposit schemes is offered by the Bank of Baroda. Here’s a look at the interest rates offered by the bank to senior citizens –

You should, however, remember that the rates also depend on the amount of investment that you do. The above-mentioned rates are for deposits below INR 2 crores. For higher amounts, the rates would be different.

So, given these interest rates fixed deposits are one of the best investment avenues and can be selected by senior citizens for availing tax-free returns.  

SEE ALSO: Why invest in Company Fixed Deposit?