Senior Citizen Fixed Deposit Interest Rates 2025

Senior citizen fixed deposit interest rates vary between banks and NBFCs. However, in general, senior citizen depositors are eligible for slightly higher interest rates than the general public. As a senior citizen, you may face challenges opening multiple savings bank accounts to

with high interest rates. 

To ease your issues, we at Stable Money allow you to book fixed deposits from multiple banks without the need for separate savings accounts. Scroll below to know the interest rates of our partnered banks and NBFCs. 

Senior Citizen Fixed Deposit Interest Rates 

Here are the senior citizen fixed deposit interest rates of our partnered banks and NBFCs:

Choose a bank or NBFC as per your convenience and book your senior citizen fixed deposit now!

TDS on Senior Citizen Fixed Deposit Scheme Interest

The interest income earned from senior citizen fixed deposits is taxable as ‘income from other sources’ under the Income Tax Act. Depositors have to pay tax based on the tax slab of their annual income. Banks also deduct a TDS (tax deducted at source) on the interest income of depositors (senior citizens) if it exceeds ₹50,000 in a financial year. However, to avoid TDS deduction by banks, senior citizen depositors need to submit Form 15H at the beginning of the financial year. 

Benefits of Senior Citizen Fixed Deposit Schemes

Here are some of the benefits of opening a senior citizen FD:

1. Low Risk: Fluctuations and market volatility do not affect the returns from fixed deposits. 
2. Guaranteed Returns with Security: Fixed deposits offer stable returns for depositors, which are pre-determined at the time of booking an FD. 
3. Flexible Interest Payout Options: As a depositor, you can choose any interest payout option, such as monthly, quarterly, or annual, at your convenience. 
4. Higher Interest Rates: Senior citizen fixed deposits offer a higher interest rate compared to regular fixed deposits for depositors above 60 years. 
5. Flexible Tenure: Depositors can choose a tenure to book an FD based on their convenience. 

How to Open a Senior Citizen Fixed Deposit Account with Stable Money?

Opening a fixed deposit account with a bank mandate opening a savings bank account. However, choosing Stable Money to open a senior citizen fixed deposit eliminates the need to open a savings bank account. 

As a depositor, you can directly book a fixed deposit with our partnered banks and NBFCs. This helps you get high interest rates for your chosen tenure on the fixed deposit principal. 

Here are the steps to open a senior citizen fixed deposit with Stable Money:

Step 1: Download the Stable Money application.

Step 2: Select the bank or NBFC of your choice.

Step 3: Choose the tenure for a senior citizen fixed deposit and book your FD.

Download the Stable Money App now to book a senior citizen fixed deposit!

Also Read: Maximizing Financial Security with Fixed Deposits for Seniors

Eligibility Criteria to Avail Senior Citizen Fixed Deposit Interest Rates

Here are the eligibility criteria for senior citizen fixed deposit booking:

• Depositors should be 60 years or above.
• As a depositor, you need to have the necessary documents to open a fixed deposit account.

Documents Required for Senior Citizen Fixed Deposit Scheme

You need the following documents to open a fixed deposit account:

• PAN card as identity proof
• Address proof (Aadhaar card, passport, voter ID card, driving license)
• Passport sized photograph

Penalty on Premature Withdrawal of Senior Citizen Fixed Deposits

You can choose the tenure of a senior citizen fixed deposit while booking one. The interest rate of the fixed deposit varies based on the tenure and the principal amount (the interest rate also changes as per fixed deposit rules and regulations). You can receive the principal on maturity if you do not liquidate it earlier.

However, if there is an emergency, depositors can consider premature withdrawal of fixed deposits before maturity. Banks typically levy a penalty on the effective interest rate for premature fixed deposit withdrawals. 

Consider the scenario below to understand the penalty for premature fixed deposit withdrawal:

• Fixed deposit principal: ₹1 lakh
• Tenure: 5 years
• Senior citizen fixed deposit interest rate for 5 years: 8.97% p.a.
• Amount receivable at maturity with cumulative interest payment: ₹1,53,650

After premature withdrawal within a year:

• Senior citizen fixed deposit interest rate for 1 year: 8.09% p.a.
• Penalty: 1% p.a.
• Effective interest rate: 7.09% p.a.
• Amount receivable on premature withdrawal after 1 year: ₹1,07,090

Book your senior citizen fixed deposit with our partnered banks to get a high interest rate!