FD interest rate of up to 8.05%: Best interest rates on senior citizen FDs maturing in three years (2024)

Fixed deposits (FDs) are an attractive and secure fixed-income investment instrument for many senior citizens. For seniors who are planning to lock their money in FDs, it is a good time to invest as several banks are still offering high interest rates on deposits. Interest rates on senior citizen FDs maturing in three years can go up to as high as 8.05% among public and private sector banks. Read below to find out the highest interest rates currently available on senior citizen FDs maturing in three years.

Do note all the interest rates are applicable for FDs below Rs 3 crore maturing in three years and for individuals aged above 60 years but below 80 years of age.

DCB Bank India senior citizen FD rate

DCB Bank India offers an interest rate of 8.05% on FDs maturing between more than 26 months and less than 37 months for senior citizens.

RBL Bank senior citizen FD rate

For senior citizens, private sector bank RBL Bank offers an interest rate of 8% on FDs maturing between 289 days (24 months and a day) and 432 days (36 months).

YES Bank senior citizen FD rate

For senior citizens, private sector bank YES Bank offers an interest rate of 8% on FDs maturing between 24 months and 36 months.

Bandhan Bank senior citizen FD rate

For senior citizens, Bandhan Bank offers an interest rate of 7.75% on FDs maturing between three years and less than five years.

IDFC First Bank senior citizen FD rate

Bandhan Bank offers an interest rate of 7.75% on senior citizen FDs maturing between two years and one day and three years.

IndusInd Bank senior citizen FD rate

IndusInd Bank offers an interest rate of 7.75% on senior citizen FDs maturing between two years and seven months and three years and three months.

Bank of Baroda senior citizen FD rate

Bank of Baroda offers an interest rate of 7.75% on senior citizen FDs maturing between two years and three years.

Table showing the highest interest rates on 3-year FDs for senior citizens

Source:Paisabazar.com as of June 19, 2024

Axis Bank senior citizen FD rate

Axis Bank offers an interest rate of 7.6% on senior citizen FDs maturing between 30 months and less than three years.

Federal Bank senior citizen FD rate

Federal Bank offers an interest rate of 7.5% on senior citizen FDs maturing between three years and less than five years.

HDFC Bank senior citizen FD rate

HDFC offers an interest rate of 7.5% on senior citizen FDs maturing between two years 11 months one day and less than three years.

Foreign bank Deutsche Bank offers an interest rate of 8% on senior citizen FDs maturing between two years and three years.

Senior citizens get additional interest rates on FDs from banks. This additional interest rate is over and above the rates offered to individuals under 60 years of age. Further, the income tax law also gives senior citizens the benefit of a higher threshold of TDS deduction. Banks have to deduct TDS on FDs if the interest amount exceeds Rs 50,000 in a financial year. According to CA Abhishek Gupta, co-founder and Managing Partner, Pierag,"Senior citizens can submit Form 15H to the bank at the beginning of the financial year if their total taxable income is below the basic exemption limit. By submitting Form 15H, they can request the bank not to deduct TDS on interest income from their FDs.

As per Gupta from Pierag, to be eligible to submit Form 15H, the following conditions must be met:

- The individual should be 60 years or older.

- The estimated total taxable income for the financial year should be below the basic exemption limit.

- The tax calculated on the total income should be nil.