4 Special Fixed Deposit Schemes for Senior Citizens

In May 2020, the COVID-19 pandemic started to spread like wildfire across the world. During this time, many banks launched special fixed deposit schemes for senior citizens. This scheme aimed at offering higher interest rates to senior citizens who open fixed deposits with a tenure of 5 years and more. The last date of the schemes has been revised by the lenders. There are three banks in India that are offering special fixed deposit schemes for senior citizens. They are, Bank of Baroda (BoB), State Bank of India (SBI) and HDFC Bank. While Bank of Baroda (BoB), SBI, and HDFC Bank have extended the special deposit schemes for senior citizens till 31 March 2022.

Let's take a look into the fixed deposit scheme for senior citizens offered by each of these banks:

Bank of Baroda's Special Fixed Deposit Scheme for Senior Citizens

The bank is offering 1% higher to senior citizens for opening a fixed deposit that has a tenure of between 5 years and 10 years. The rate of interest offered by the lender ranges from 3.30% p.a. to 6.35% p.a. The interest rates offered by Bank of Baroda to senior citizens are listed in the table below:

Tenure Interest Rates (p.a.)
7 days to 14 days 3.30%
15 days to 45 days 3.30%
46 days to 90 days 4.20%
91 days to 180 days 4.20%
181 days to 270 days 4.80%
271 days and above and less than 1 year 4.90%
1 year 5.50%
Above 1 year to 400 days 5.70%
Above 400 days and up to 2 Years 5.70%
Above 2 Years and up to 3 Years 5.70%
Above 3 Years and up to 5 Years 6.00%
Above 5 Years and up to 10 Years 6.35%

SBI's Special Fixed Deposit Scheme for Senior Citizens

SBI also launched a special fixed deposit scheme for senior citizens, which will help them earn 80 basis points (bps) more than that of the general public on a tenure that ranges between 5 to 10 years. If a senior citizen opens a fixed deposit with SBI for 5 years and up to 10 years, he/she will earn interest at the rate of 6.30%. The rate of interest offered by the lender to senior citizens depending on the tenure is listed below:

Tenure Interest Rates (p.a.)
7 days to 45 days 3.40%
46 days to 179 days 4.40%
180 days to 210 days 4.90%
211 days to less than 1 year 4.90%
1 year to less than 2 years 5.60%
2 years to less than 3 years 5.70%
3 years to less than 5 years 5.95%
5 years and up to 10 years 6.35%

IDBI Bank introduces Naman Senior Citizen Deposit

IDBI Bank introduced a special fixed deposit scheme known as ‘IDBI Naman Senior Citizen Deposit’ on Wednesday. It is a strong competitor of special fixed deposit schemes of reputed banks like HDFC Bank, the State Bank of India (SBI), and ICICI Bank that offer massive interest rate benefits to senior citizens. The interest rates offered by the bank to senior citizens are listed in the table below:

Tenure Interest Rate
7 days to 14 days 3.20%
15 days to 30 days 3.20%
31 days to 45 days 3.50%
46 days to 60 days 3.75%
61 days to 90 days 3.90%
91 days to 6 months 4.25%
6 months 1 day to 270 days 4.90%
271 days to less than 1 year 5.00%
1 year 5.65%
Above 1 year to 2 years 6.00%
Above 2 years to less than 3 years 6.10%
3 years to less than 5 years 6.25%
5 years 6.35%
Above 5 years to 7 years 6.35%
Above 7 years to 10 years 6.25%
Above 10 years to 20 years 5.30%

HDFC Bank's Special Fixed Deposit Scheme for Senior Citizens

Under the special fixed deposit scheme for senior citizens, HDFC Bank offers 75 bps higher than the rate offered to the general public. You can earn 6.25% when you open a fixed deposit for 5 years and above. The interest offered to citizens above the age of 60 years by HDFC Bank are listed below:

Tenure Interest Rates (p.a.)
7 days to 14 days 3.00%
15 days to 29 days 3.00%
30 days to 45 days 3.50%
46 days to 60 days 3.50%
61 days to 90 days 3.50%
91 days to 6 months 4.00%
6 months 1 day to 9 months 4.90%
9 months 1 day to less than 1 year 5.00%
1 year 5.60%
1 year 1 day to 2 years 5.60%
2 years 1 day to 3 years 5.90%
3 years 1 day to 5 years 6.10%
5 years 1 day to 10 years 6.50%

FAQs on Special Deposits for Senior Citizens

  1. Who can open a senior citizen fixed deposit?

    All Indian citizens aged 60 years and above are eligible to open a senior citizen fixed deposit.

  2. Do senior citizens get additional interest rates on fixed deposits?

    Yes, senior citizens get additional interest rates on fixed deposits.

  3. Is a fixed deposit interest taxable for senior citizens?

    Senior citizens will not be taxed on FD interest earnings up to Rs.50,000.

  4. Can a senior citizen open a fixed deposit jointly with an individual who is not a senior citizen?

    Yes, a senior citizen can open a fixed deposit jointly with an individual who is not a senior citizen. However, the primary account holder must be a senior citizen.

  5. What is the highest interest rate offered to senior citizens by the Bank of Baroda on fixed deposits?

    Bank of Baroda offers an interest rate of 6.35% p.a. to senior citizens for fixed deposits with tenures ranging from more than 5 years to 10 years.

  6. Do super senior citizens receive additional interest rates on fixed deposits?

    Yes, super senior citizens, who are over the age of 80 years are offered higher interest rates than senior citizens on fixed deposits.

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