FD Rate for Senior Citizens: Some banks are still offering senior citizens (60 years and older) up to 8.25% interest on fixed deposits (FDs) for a period of three years with a maximum limit of Rs 3 crore.
Fixed deposit rates for senior citizens
In addition to FD interest rates given to ordinary depositors, banks and NBFCs usually have 0.50% PA to elderly citizens. Many banks offer an additional interest rate of 0.20% to 0.50% at the top of their senior citizens FD rates for their special plans and/or special tenure. For example, the ICICI Bank provides less than 18 months of senior citizen FD rates over a period of 15 months (0.10%) of 50 basis digits of the current additional senior citizen FD rates.
Additionally, very senior individuals (those 80 years and older) can avail the increased interest rates offered by some banks and NBFCs. For example, the Indian bank gives an additional interest rate of 0.75% PA for five years to highly elderly senior (FD depositors 80 years and above) and additional interest rate of 1% for five to ten years old deposits.
Senior citizen bank FD interest rate
FD rate of up to 8.25%
Slice Small Finance Bank offers fixed deposits with a three-year term at an interest rate of 8.25%.
FD rate for senior citizens up to 8.15%
For senior citizens, Utkarsh Small Finance Bank is issuing FDs with three-year terms at an interest rate of 8.15%.
| Bank Name | Interest rate |
| Slice Small Finance Bank | 8.25% |
| Slice Small Finance Bank | 8.15% |
| Jana Small Finance Bank | 8% |
| Shivalik Small Finance Bank | 8% |
FD rate of up to 8%
For FDS with a three-year term, Jana Small Finance Bank is offering interest rates up to 8%. Additionally, Shivalik Small Finance Bank is providing up to three years of FD interest rates of up to 8%.
When is the Bank FDS under TDS deduction?
If the interest from a fixed deposit (FD) in a certain bank is more than Rs 1 lakh, the bank will have to deduct the tax in the source (TDS). Keep in mind that TDS is not an additional tax. When you file your Income Tax Return (ITR), you can claim it as a refund or cut it out of your overall responsibility. Additionally, if you are eligible for one, you may be eligible for interest on your tax return. For example, under the new tax regime for FY 2025-2026, a senior adult with income of Rs 11 lakh will not be required to pay income tax due to Section 87A tax exemption. Under the new tax regime for the financial year 2025-2026, the income of up to Rs 12 lakh is eligible for the corresponding tax.
If the total income of a senior citizen, all taxes and Section 87A exemption is less than the taxable limit – Rs 12 lakh under the new tax regime or Rs 5 lakh under the previous one – they can also file Form 15H to avoid TDS deduction. Despite the fact that annual income less than Rs 12 lakh has been freed from income tax, banks and other financial institutions will still cut TD. This is due to the fact that the law suggests that they cut the TD if the interest or income amount is more than a specific limit, which is Rs 1 lakh for senior citizens. Banks will cut TDS after the annual interest exceeds Rs 1 lakh as they are unaware of personal tax obligations. Therefore, send banks to Form 15H to inform.
Sanjoli Maheshwari, Executive Director of Nangia and Company LLP
According to the prescribed provision and its rules, a resident person can provide a self-proclamation to the person responsible for paying some income to a person 60 years or older (a senior citizen) person in Form 15H (including interest on fixed deposits), stating that his estimated total income (including such income) will be tax “zero”. This is done to ensure that in question the person does not deduct any tax on such an income. This information has been explained by Sanjoli Maheshwari, Executive Director of Nangia and Company LLP.
Under the new regime starting in AY 2026–2027, the benefit of Section 87A exemption available for residents with taxable income of Rs 12 lakh will be taken into consideration while calculating tax on expected total income. In its light, a senior citizen may have filed Form 15H to avoid interest on fixed deposits levied at the source of Rs 12 lakh under the new tax regime in AY 2026-27 and after accounting for qualified discounts under Section 87A, it is “zero”.
Documents Required for Opening FD account for Senior Citizens
A depositor can immediately start a fixed deposit account by logging on to pure banking or mobile banking, or they can only bring the required paperwork in the branch if they want to open a one in the same bank where they currently have a current account or savings account. The concerned depositor should visit the bank branch with relevant paperwork as per the rules of KYC (knowing his customer) if they are not bank customers.
- Identity Proof
- Senior citizen ID card
- Passport
- PAN card
- Voter ID card
- Driving licence
- Photo ration card
- Address Proof
- Passport
- Telephone bill
- Electricity bill
- Bank Statement with Cheque
- Certificate/ ID card issued by Post office
Best Tax-saver FD Interest Rate
Top tax-saving FD investors often wish to reduce their tax obligations and choose FDs, also called 5-year-old tax saver FDs. FDs that qualify for 1.5 lakh deductions under section 80c of the Income Tax Act are known as tax-saver FDs. Top tax-shouted FDs are listed in the table below:
| Banks | Regular Citizens Interest Rate | Senior Citizens Interest Rate |
| suryodaya small finance bank | 8.20% | 8.40% |
| unity small finance bank | 7.25% | 7.75% |
| utkarsh small finance bank | 7.25% | 7.75% |
| jana small finance bank | 8.20% | 8.20% |
| slice small finance bank | 7.75% | 8.25% |
| AU small finance bank | 6.75% | 6.92% |
| Shivalik small finance bank | 6.50% | 7.00% |
| Axis bank | 6.60% | 7.35% |
| Bandhan bank | 5.85% | 6.60% |
| hdfc bank | 6.40% | 6.90% |
| icici bank | 6.60% | 7.10% |
| Yes bank | 6.75% | 7.50% |
| IDFC first bank | 6.60% | 7.10% |
| IDBI | 6.25% | 6.75% |