FD interest rates of banks are higher for senior citizens as compared to those for general public.Fixed deposits (FDs) are secure financial instruments that offer guaranteed returns.
In a fixed deposit account, money is deposited for a specific time.
Most banks today offer a maturity period ranging from seven days to 10 years for fixed deposits.
Money depositedin a savings account usually fetches an interest rate to the tune of 3-4 per cent.
Fixed deposits, however, offer much higher interest rates compared to savings accounts.
Lenders also pay slightly higher interest rateson fixed deposits to senior citizens, compared to those applicable to the general public.
Banks keep on revising their FD interest rates from time to time.Here is a comparison of interest rates paid by State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank, ICICI Bank andHDFC Bank onfixed deposits of up to Rs 1 crore: State Bank of IndiaTermInterest rate for general public (with effect from July 30, 2018)Interest rate for senior citizens (with effect from July 30, 2018)7 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less than 2 year6.77.22 years to less than 3 years6.757.253 years to less than 5 years6.87.35 years and up to 10 years6.857.35Punjab National BankSl.
NoPeriodInterest rate for general public(with effect from August 1, 2018)Interest rate for senior citizens(with effect from August 1, 2018)17 to 14 days5.76.2215 to 29 days5.76.2330 to 45 days5.76.2446 to 90 days6.356.85591 to 179 days6.356.856180 days to 270 Days6.356.857271 days to less than 1 year6.356.8581 year6.757.259above 1 year upto 3 years6.757.2510above 3 year upto 5 years6.256.7511above 5 years upto 10 years6.256.75Canara BankTermInterest rate for general public (with effect from August 4, 2018)Interest rate for senior citizen (with effect from August 4, 2018)7 days to 14 days *5.756.2515 days to 30 days5.756.2531 days to 45 days5.756.2546 days to 60 days6.256.7561 days to 90 days6.256.7591 days to 120 days6.256.75121 days to 179 days6.256.75180 days to 269 days6.356.85270 days to less than 1 year6.46.91 year only6.77.2Above 1 year to less than 2 years77.52 years above to less than 3 years6.77.23 years above to less than 5 years6.26.75 years above to less than 8 years6.26.78 years above to 10 years6.26.7(Source: canarabank.com)ICICI BankTenure PeriodInterest rate (with effect from August 14, 2018)GeneralSenior Citizen7 days to 14 days44.515 days to 29 days4.254.7530 days to 45 days5.5646 days to 60 days5.756.2561 days to 90 days66.591 days to 120 days66.5121 days to 184 days66.5185 days to 289 days6.57290 days to less than 1 year6.757.251 year to 389 days6.757.25390 days to 2 years77.52 years 1 day upto 5 years7.257.755 years 1 day upto 10 years77.55 Years Tax saver FD(Max upto Rs.
1.50 lac)7.257.75HDFC BankPeriodInterest rate (with effect fromAugust 6, 2018)For general publicFor senior citizens7 - 14 days3.50%4.00%15 - 29 days4.25%4.75%30 - 45 days5.75%6.25%46 - 60 days6.25%6.75%61 - 90 days6.25%6.75%91 days - 6 months6.25%6.75%6 mnths 1 day- 6 mnths 3 days6.75%7.25%6 mnths 4 days6.75%7.25%6 mnths 5 days- 9 mnths6.75%7.25%9 mnths 1 day- 9 mnths 3 days7.00%7.50%9 mnths 4 days7.00%7.50%9 months 5 days - 9 months 15 days7.00%7.50%9 months 16 days7.00%7.50%9 months 17 days < 1 Year7.00%7.50%1 Year7.25%7.75%1 year 1 day - 1 year 3 days7.25%7.75%1 year 4 days7.25%7.75%1 year 5 days - 1 Year 15 Days7.25%7.75%1 Year 16 days7.25%7.75%1 year 17 days - 2 Years7.25%7.75%2 years 1day - 2 Years15 days7.10%7.60%2 Years16 days7.10%7.60%2 years17 days - 3 Years7.10%7.60%3 years 1day - 5 years7.10%7.60%5 Years 1 Day - 8 Years6.00%6.50%8 Years 1 Day - 10 Years6.00%6.50%Some fixed deposits come with a premature withdrawal facility while some require a compulsory lock-in period.
The fixed deposit accounts which have a lock-in period of five or 10 years also offer income tax benefit under Section 80C of the Income Tax Act.