Fixed Deposit Interest Rates For Senior Citizens: 5 Govt Banks Compared

 

Banks offer special FD interest rates to senior citizens. There are many schemes in banks and post offices which are primarily targeting senior citizens.

Fixed Deposits (FD) are a popular investment option in India because they offer a low-risk investment opportunity with assured returns.

People in India invest in FDs due to multiple reasons like guaranteed returns, low risk, flexible tenure, tax benefits etc..

Banks offer special FD interest rates to senior citizens. There are many schemes in banks and post offices which are primarily targeting senior citizens.

Read More: Kotak Mahindra Bank Adds 100 Gold Loan Branches, Targets More In FY ’23

In India, a senior citizen is a resident Indian who is of the age of 60 years and above and a super senior citizen is a resident Indian who is of the age of 80 years and above at any time during the respective financial year.

For empowerment of senior citizens, the Union Budget 2023-24 also announced that the maximum deposit limit for Senior Citizens Savings Scheme to be enhanced from the current Rs 15 lakh to Rs 30 lakh from next financial year.

In FD, the interest rate is fixed for the entire tenure of the deposit, which means that investors know exactly how much they will earn at the end of the deposit term.

FDs are also considered to be one of the safest investment options because the risk of losing money is minimal.

FDs come with flexible tenure options, allowing investors to choose a term that suits their financial goals and needs.

FDs offer tax benefits under Section 80C of the Income Tax Act.

Here’s a comparison of fixed deposit interest rates offered by 5 Public Sector Banks (PSBs) to senior citizens on fixed deposits duration of 5-10 years (Rates for deposits less than Rs 2 Crore)

1. State Bank of India

State Bank of India (SBI) is offering 7.5% per annum (From 15/02/2023) interest rate to senior citizens on 5-10 years fixed deposits. For the general public, the FD interest rate is 6.50% for the same period.

SBI has also introduced a specific tenor scheme of ‘400 days’ (Amrit Kalash) at rate of interest of 7.10% (w.e.f February 15, 2023). Senior citizens are eligible for a rate of interest of 7.60%. The scheme is valid till March 31, 2023.

Read More: Salary hikes may drop to 10.3% this year from 10.6% in 2022: Aon survey

2. Punjab National Bank

Punjab National Bank (PNB) is offering 7% FD interest rate to senior citizens on a 5 year scheme.

The bank is offering 7.3% interest to senior citizens for the period between 5 and 10 years.

For the general public, the bank is offering 6.50% FD interest rates for 3 to 10 years.

Recently, PNB raised interest rates on several fixed deposits tenures by up to 30 basis points (bps). The new interest rates came into effect on February 20.

3. Central Bank of India

Central Bank of India has announced 6.92% per annum interest rate to senior citizens on FDs of 5 years and above and up to 10 years. Same interest rate is applicable for a duration between 3 and 5 years FD.

4. Canara Bank

Senior citizens opting for FDs in Canara Bank can get 7% per annum interest for 5 years for callable deposits. Same rate of interest is applicable for 3 years and above to less than 5 years period.

For non-callable deposits above Rs 15 lakh and below Rs 2 crore, the bank is offering 7.45% interest to senior citizens customers.

5. Bank of India

Bank of India is offering 6.75% interest to senior citizens on fixed deposits from 5 to less than 8 years. Same rate is applicable on the period 8 years and above to 10 years.

The bank is offering 7.25% interest rates to senior citizens for 2 years to less than 5 years FD scheme.

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the ...
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the I...
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5...
Read more