Senior Citizen FD Rates

Higher returns, complete security with Bajaj Finance Senior Citizen FD, offering up to 8.85% p.a. returns. Enjoy higher earnings and complete security, ensuring a stable, risk-free growth for your savings.
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Senior citizen FD
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3 mins
15 December 2024

Senior citizens in India can enjoy higher interest rates on their Fixed Deposits (FDs) compared to general citizens. These Senior Citizen Fixed Deposit schemes are specifically designed for individuals aged 60 and above. For instance, Bajaj Finance offers up to 0.40% p.a. more interest on these FDs. This enables senior citizens to earn a steady income post-retirement, with regular interest payouts. Additionally, they have the flexibility to take loans against their FDs if required.

Senior Citizen Fixed Deposit Scheme - Important Highlights

The table below presents key information about the Senior Citizen Fixed Deposit scheme

Senior Citizen FD Scheme

Minimum and maximum investment amounts

Minimum and maximum deposit for a senior citizen FD varies among financial institution.

Tenure

Typically ranging from 12 to 60 months, 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.

Nomination facility

When opening a Fixed Deposit (FD), it is important to designate a nominee to ensure that your dependents can easily claim the funds if needed. To do this, the depositor must complete a separate form for nomination, called Form DA1.

Fixed Deposit

  1. Trusted by over 5 lakh customers
  2. Fixed Deposits worth more than Rs. 50,000 crore booked
  3. Rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE)
  4. Special tenure of 18, 22, 33, 42 and 44 months offered for higher returns
  5. Up to 0.40% p.a. extra interest offered for senior citizens
  6. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

By proceeding, you agree to our Terms and Conditions

Pro tip

Bajaj Finance launches a new variant, "FD Max", for investments upto Rs. 25,000 . Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a.for senior citizens and 8.60% p.a. for non-senior citizens , in this variant.

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Key Features of Senior Citizen Fixed Deposit Schemes

The features of senior citizen fixed deposit schemes offered by Bajaj Finance are listed below:

  • Get secured returns up to 8.85% p.a.
    Grow your savings without any effect of market fluctuations.
  • Up to 0.40% 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

FD Max rates for customers above the age of 60

Bajaj Finance FD Max annualised rate of interest for senior citizens for deposit up to Rs. 25,000 (w.e.f 14 November, 2024)

*Experience higher interest rate of up to 8.85% p.a. on a 42-month Digital FD Max, available on website and app.

Bajaj Finance Digital FD Max

New Product Launch
Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
42* 8.85% 8.51% 8.57% 8.66% 8.85%

Senior Citizen – Special Period (FD Max)

Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
18* 8.25% 7.95% 8.01% 8.09% 8.25%
22* 8.35% 8.05% 8.10% 8.18% 8.35%
33* 8.55% 8.23% 8.29% 8.37% 8.55%
44* 8.70% 8.37% 8.43% 8.52% 8.70%

Senior Citizen – Regular Period (FD Max)

Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
12 - 14 7.85% 7.58% 7.63% 7.70% 7.85%
15 - 23 7.95% 7.67% 7.72% 7.80% 7.95%
24 - 35 8.40% 8.09% 8.15% 8.23% 8.40%
36 - 60 8.55% 8.23% 8.29% 8.37% 8.55%

FD rates for customers above the age of 60

Fixed Deposit annualised rate of interest for senior citizen is valid for deposit Rs. 25,001 and up to Rs. 3 crore (w.e.f 14 November, 2024)

*Experience higher interest rate of up to 8.65% p.a. on a 42-month Digital FD, available exclusively on website and app.

Bajaj Finance Digital FD
Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
42* 8.65% 8.33% 8.38% 8.47% 8.65%

Senior Citizen – Special Period

Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
18* 8.05% 7.77% 7.82% 7.89% 8.05%
22* 8.15% 7.86% 7.91% 7.99% 8.15%
33* 8.35% 8.05% 8.10% 8.18% 8.35%
44* 8.50% 8.19% 8.24% 8.33% 8.50%

FD Interest Rate for Senior Citizens

Tenure in
months
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 - 23 7.75% 7.49% 7.53% 7.61% 7.75%
24 - 35 8.20% 7.91% 7.96% 8.04% 8.20%
36 - 60 8.35% 8.05% 8.10% 8.18% 8.35%

Taxation under senior citizen fixed deposit scheme

  • Taxability: Interest earned on Senior Citizen FDs is taxable as part of the senior citizen's total income.
  • TDS Deduction: Financial institutions deduct TDS at 10% if the annual interest income exceeds Rs. 5,000.
  • Section 80TTB Deduction: Senior citizens can claim a deduction of up to Rs. 50,000 on their interest income under Section 80TTB of the Income Tax Act.
  • Form 15H: To avoid TDS deduction, senior citizens with a total income below the taxable limit can submit Form 15H to their bank.

Benefits of FD for senior citizens

  • Higher Interest Rates: Senior citizens often receive preferential treatment in the form of higher interest rates on their Fixed Deposits (FDs). This allows them to earn more on their savings compared to regular customers.
  • Stable Income: FDs provide a steady and predictable income stream through regular interest payouts. This is particularly beneficial for senior citizens who rely on their savings for daily expenses. The frequency of these payouts can be customized to suit individual needs, such as monthly, quarterly, half-yearly, or yearly.
  • Capital Protection: FDs are renowned for their safety and security. They guarantee the return of the principal amount invested, ensuring that your hard-earned savings are protected from market volatility.
  • Liquidity: Although FDs are typically locked-in investments, many banks offer loan facilities against them. This provides a degree of liquidity, allowing you to access funds in case of emergencies without having to prematurely break your FD.
  • Ease of Investment: FDs are known for their simplicity. Opening and managing an FD is a straightforward process, making it an ideal investment option for senior citizens who may prefer low-risk, hassle-free investments.
  • Retirement Planning: Senior Citizen FDs can be a valuable tool for retirement planning. By offering a steady income stream and capital protection, these FDs can help you plan your retirement years with confidence.

Senior Citizen FD Eligibility

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 Senior Citizen FD Account

Below are the documents required for applying to Senior citizen fixed deposit by Bajaj Finance.

  • PAN Card
  • FD account opening application form
  • KYC Documents (Aadhar card/passport/driving license/voter ID)
  • Passport-size photographs
  • Form 15H or self-declaration form

How to Invest in Bajaj Finance Fixed Deposit

Investing in a Bajaj Finance online FD is quick and easy. Follow the steps below:

  1. Click on 'Invest Online' to open our online form
  2. Enter your phone number, date of birth and OTP
  3. Existing customers only need to verify their details
  4. If you’re a new customer, you will be asked to enter your basic details for KYC
  5. Choose the deposit amount, tenor, interest payout type and your bank details
  6. 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 8.85% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.60% p.a. The Digital FD can be opened and managed only through the website or app.

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 safest investment avenues

Investing in a Bajaj Finance Fixed Deposit is safe, as you can be sure of low risks of delays and defaults.

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 to 0.40% p.a. By investing in a Bajaj Finance Senior Citizen FD, they can earn returns of up to 8.85% 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 8.85% p.a. Under section 80 TTB of the IT act, interest income up to Rs. 5,000 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.

How is the taxation done for senior citizens FD?

If the interest earned in a financial year (1st April to 31st March) exceeds Rs. 50,000, TDS is charged at 10%.

What is the difference between fixed deposit and senior citizen fixed deposit?

Unlike regular FDs, the senior citizen fixed deposit comes with special interest rates. Generally, banks offer 0.5% extra interest for elderly customers as compared to regular FD customers.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.