Offers
Rates
V-KYC
Debit Card Related
Credit Card Related
SA Welcome Kit 
Manage Mandate(s)
Get Mini Statement
categories
Bloggers
Blog collection
Press Release
How Interest Rates for Senior Citizen Fixed Deposits Compare to Regular Fixed Deposits
Posted on Wednesday, April 10th, 2024 | By IndusInd Bank
Senior citizen fixed deposits interest rates are usually higher than regular fixed deposits to enable elderly investors to meet their unique financial needs and maintain their standard of living post retirement.
When managing your finances, fixed deposits emerge as a reliable investment option that offers stability and assured returns. Two main fixed deposit categories cater to various age groups: Senior Citizen Fixed Deposits and Regular Fixed Deposits. It is essential to be aware of the differences in their interest rates to make wise decisions about your finances. Senior citizen fixed deposits typically offer a higher interest rate than regular fixed deposits. This variation can be attributed to senior citizens’ unique financial needs and situations, and helps to support them in maintaining their quality of life after retirement.
Let us examine the unique characteristics that set these two fixed deposits apart to make informed decisions towards financial stability.
| Features | Regular Fixed Deposits | Senior Citizen Fixed Deposits |
| Age Criteria | Tailored for individuals below 60 years of age | Tailored exclusively for individuals 60 years of age or above |
| Interest Rates | Provides interest rates lower than senior citizen fixed deposits because there are no age-specific incentives | Provides higher interest rates than regular fixed deposits to address the specific financial requirements of elderly investors |
| Tax Implications | The interest earned on Fixed Deposit is subject to TDS if interest income exceeds INR 40,000, then PAN card holders would pay 10% of Interest income as TDS, while non-PAN card holders would have to pay 20%. Customer, if eligible, can submit form 15G to avoid TDS deduction. | The interest earned on Fixed Deposit is subject to TDS if interest income exceeds INR 50,000, then PAN card holders would pay 10% of Interest income as TDS, while non-PAN card holders would have to pay 20%. Customer, if eligible, can submit form 15H to avoid TDS deduction. |
Benefits of Fixed Deposits Scheme for Senior Citizens
Here are some of the key advantages of fixed deposits for senior citizens:
1. Higher Interest Rates
Fixed deposit schemes tailored for senior citizens offer higher interest rates than other fixed deposit options. This is because senior citizens tend to be low-risk investors since they are risk-averse and are committed to maintaining the deposit until maturity.
2. Low Risk and Guaranteed Returns
Investing in fixed deposits is a safe option for senior citizens seeking stable earnings. The stability of fixed deposit returns remains unaffected by market fluctuations, which makes them more appealing to older individuals.
3. Flexible Tenure
Fixed deposits offer flexibility in terms of tenure, ranging from 7 days to 10 years. It enables senior citizens to align their investment plans with their financial needs and goals.
4. Interest Benefits
Senior citizens can select the frequency of interest payments from their fixed deposits, such as monthly, quarterly or upon maturity.
5. Encourage Savings
Banks play a pivotal role in encouraging responsible savings through fixed deposits. By offering higher fixed deposit rates for senior citizens, they encourage older individuals to make the most of their investments.
6. Loan against FDs
Having a fixed deposit is akin to having a safety net for unexpected financial challenges. In times of need, senior citizens can leverage their fixed deposit to secure a loan. Banks may extend loans of up to 90% of the deposited amount.
Apply for a Senior Citizen Fixed Deposit Scheme with IndusInd Bank
With its Senior Citizen Fixed Deposit Scheme,IndusInd Bank provides older individuals looking for safe and reliable investment options with a customised financial solution. Some of the compelling features and benefits of this scheme include:
- Minimum initial deposit of INR 10,000
- Flexible deposit tenures ranging from 7 days to 120 months
- The interest rate is usually 0.50% higher than regular fixed deposits
- TDS is deducted from the interest earned as per applicable tax laws
- Customers can nominate a beneficiary for the account
- Premature closure of a fixed deposit is permitted
Take the first step towards financial security and a worry-free retirement. Apply for the Senior Citizen Fixed Deposit Scheme with IndusInd Bank today!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
