FD interest rates for senior citizens
Senior citizen fixed deposit (FDs) are term deposit plans with exceptional interest rates available to individuals over the age of 60. Apart from the additionalup to 0.40% p.a. rate of interest, these fixed deposit accounts offer a wide range of benefits to older residents. Regular interest payouts can provide a constant and reliable income source for seniors in their post-retirement years. If needed, they can also take out a loan against the FD.
Bajaj Finance offers assured returns on fixed deposits, making them the preferred investment avenue for senior citizens. The ease of transaction, certainty, the safety of deposit and online facilities make the Bajaj Finance FD an excellent choice for every investor, regardless of their risk appetite.
You can easily calculate the interest returns with the help of Bajaj FinanceFD Calculator.
Senior Citizen Fixed Deposit Scheme - Important Highlights
Minimum and maximum investment amounts | Minimum and maximum deposit for a senior citizen FD varies among financial institution. |
Tenure | Typically ranging from 7 days to 10 years, you can choose a tenure based on your needs. |
Premature withdrawals | Financial institution often allows premature withdrawals, serving as an emergency fund, though they charge some penalties. Check terms and condition before investing |
Loan against FD | FDs can be used as collateral for loans, financial institutions like Bajaj Finance offers loan against fixed deposit up to 75% of the deposit value. |
Key Features of senior citizen fixed deposit schemes
Key features of senior citizen fixed deposit:
- Get secured returns up to 8.65% p.a.
Grow your savings without any effect of market fluctuations. - Up to0.40% p.a., the higher interest rate for senior citizens
Choose to receive returns on maturity or periodically. - Flexible tenure up to 60 months
Get higher returns on your investments by staying invested for longer. - Deposits start just Rs. 15,000
Start investing with a small amount and grow your savings with our fixed deposits. - Online account management
Check FD account balance, renew FD and download receipt via customer portal- Bajaj My Account
Senior citizen fixed deposit rates 2024 (customers above 60 years)
Revised interest rates for fixed deposits starting at Rs. 15,000 up to Rs. 5 crore Rs. 5 crore (16 July, 2024)
*Special interest rates are offered on tenure of 18, 22, 33, 42 and 44 months
| Tenure in months | Cumulative (interest + principal amount payment at maturity) | Non-cumulative (interest payout at a defined frequency, principal paid at maturity) | |||
| At maturity (p.a.) | Monthly (p.a.) | Quarterly (p.a.) | Half yearly (p.a.) | Annual ( p.a.) | |
| 12 - 14 | 7.65% | 7.39% | 7.44% | 7.51% | 7.65% |
| 15-17 | 7.75% | 7.49% | 7.53% | 7.61% | 7.75% |
| 18* | 8.05% | 7.77% | 7.82% | 7.89% | 8.05% |
| 19-21 | 7.75% | 7.49% | 7.53% | 7.61% | 7.75% |
| 22* | 8.15% | 7.86% | 7.91% | 7.99% | 8.15% |
| 23 | 7.75% | 7.49% | 7.53% | 7.61% | 7.75% |
| 24-32 | 8.20% | 7.91% | 7.96% | 8.04% | 8.20% |
| 33* | 8.35% | 8.05% | 8.10% | 8.18% | 8.35% |
| 34 - 35 | 8.20% | 7.91% | 7.96% | 8.04% | 8.20% |
| 36-41 | 8.35% | 8.05% | 8.10% | 8.18% | 8.35% |
| 42* | 8.65% | 8.33% | 8.38% | 8.47% | 8.65% |
| 43 | 8.35% | 8.05% | 8.10% | 8.18% | 8.35% |
| 44* | 8.50% | 8.19% | 8.24% | 8.33% | 8.50% |
| 45 - 60 | 8.35% | 8.05% | 8.10% | 8.18% | 8.35% |
Taxation under senior citizen fixed deposit scheme
Interest earned on fixed deposits (FDs) held by senior citizens is taxable, forming part of their total income. Financial institutions deduct 10% Tax Deducted at Source (TDS) if interest surpasses Rs. 50,000 in a financial year (Rs. 40,000 for non-senior citizens).
Key points for senior citizens
- Taxability:Interest is taxed as per your income slab.
- TDS limit:Rs. 50,000 per financial year.
- Form 15H:If your total income is below the taxable limit, submit Form 15H to the bank to avoid TDS deduction.
- Section 80TTB deduction:Senior citizens can claim a deduction of up to Rs. 50,000 under section 80TTB of the Income Tax Act on interest earned from deposits held with banks, NBFC’s, post offices, or co-operative societies.
Benefits of FD for senior citizens
1. Higher interest rates
Senior citizens typically enjoy preferential interest rates on FDs, allowing them to earn more on their savings compared to regular customers.
2. Stable income
FDs offer a reliable and predictable source of income through regular interest payouts, especially with non-cumulative FDs. This is beneficial for those relying on savings for daily expenses.
3. Capital protection
FDs guarantee the return of the principal amount invested, ensuring that your savings are safe and secure.
4. Liquidity with loan facility
While FDs are generally locked-in investments, many banks offer loan facilities against them, providing liquidity in case of emergencies.
5. Ease of investment
FDs are easy to open and manage, making them a hassle-free investment option for senior citizens.
Premature withdrawal of Fixed Deposits
Premature withdrawal of fixed deposits refers to the withdrawal of funds before the completion of the agreed-upon maturity period. While financial institutions generally allow this, they often impose penalties or reduced interest rates for early withdrawals. Investors should carefully consider the terms and conditions outlined by the financial institution, as these penalties can impact the overall returns.
Eligibility for senior citizen FD
All resident Indians above the age of 60 years of age can apply for senior citizen FD. The investor must have completed 60 years on the date on which he/she opens the FD account with Bajaj Finance.
Non-Resident Indians (NRIs), Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI) can connect with our representative or write to us on wecare@bajajfinserv.in.
Documents required for opening senior citizen FD
Below are the documents required for applying to Senior citizen fixed deposit by Bajaj Finance.
- PAN
- Any KYC document: Aadhaar card/ Passport/ Driving license/ Voter ID
How to Invest in Bajaj Finance Fixed Deposit
Investing in a Bajaj Finance online FD is quick and easy. Follow the steps below:
- Click on'Invest Online'to open our online form
- Enter your phone number, date of birth and OTP
- Existing customers only need to verify their details
- If you’re a new customer, you will be asked to enter your basic details for KYC
- Choose the deposit amount, tenor, interest payout type and your bank details
- Pay the amount with net banking or UPI
Upon successful payment, your deposit will be booked, and you will receive an acknowledgement via e-mail and SMS within 15 minutes.
Frequently asked questions
What is the Digital FD offered by Bajaj Finance?
Bajaj Finance has launched a new FD variant called "Bajaj Finance Digital FD" for a period of 42 months. Bajaj Finance is providing one of the highest interest rates of up to 8.65% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.40% p.a. The Digital FD can be opened and managed only through the website or app.
What is a senior citizen fixed deposit?
Bajaj Finance offers fixed deposits for senior citizens, so individuals above 60 years of age can invest in a Bajaj Finance Fixed Deposit , earn fixed returns and grow their savings without any effect of market fluctuations.
Is the Bajaj Finance Fixed Deposit safe?
Bajaj Finance FD is one of the safest investment options for senior citizens. Here's what makes it one of the safest ways to grow your savings:
The highest credit ratings of CRISIL AAA/STABLE and [ICRA]AAA(Stable), indicates highest level of safety and lowest investment risk.
More than 5 lakh happy customers have contributed to a total FD book size of more than Rs. 50,000 crore
Nearly 80,000 of these customers are senior citizens, which reflects how senior citizens trust this FD to be one of the safestinvestment avenues
Investing in a Bajaj Finance Fixed Deposit is safe, as you can be sure of low risks of delays and defaults.
What is the interest rate for senior citizens?
Senior citizens can get attractive interest rates up to8.65% p.a. in Bajaj Finance.
Is interest in FD taxable for senior citizens?
The interest earned on senior citizen fixed deposit is taxable, as per the applicable income tax laws. These taxes, if any, are deducted at the source. Senior citizens whose interest income from all Bajaj Finance FDs put together is Rs. 3 lakh in a year can submit Form 15H to avoid incurring deductions.
What is the interest rate for Bajaj Finance Senior Citizen Fixed Deposit?
By investing in a Bajaj Finance Senior Citizen FD, senior citizens are eligible for additional rate benefit of up to0.40% p.a. By investing in a Bajaj Finance Senior Citizen FD, they can earn returns of up to8.65% p.a.
How can senior citizens save tax?
There are various investment options through which senior citizens can create wealth and also save tax. Some of these methods are:
a. Senior Citizen Fixed Deposit: With the Bajaj Finance Fixed Deposit, senior citizens can enjoy interest up to 8.65% p.a. Under section 80 TTB of the IT act, interest income up to Rs. 50,000 for senior citizens during a financial year is tax free.
b. Senior Citizen Saving’s Scheme: If you are above 60 years old, you can invest in the government backed Senior Citizen Savings Scheme and deduct up to Rs. 1.5 lakh from your taxable income under Section 80C of the Income Tax Act, 1961. Taxes are levied on the interest.
c. National Pension Scheme: The National Pension Scheme is a specialised section of the Pension Fund Regulatory and Development Authority, which is under the Ministry of Finance's supervision. In India, the National Pension Scheme is a defined contribution pension system with a voluntary component.
Which scheme is best for senior citizens?
The best scheme for senior citizens depends on individual financial goals, risk tolerance, and preferences. Options like Senior Citizen Savings Scheme (SCSS), senior citizen fixed deposit, or pension plans may suit different needs. It is advisable to research and consult with financial advisors for personalised advice.
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