Updated: 28th Dec 2012
Continuing with the theme of fixed income, let’s look at some of the best fixed deposit interest rates that are on offer for senior citizens right now.
While it is common to see banks offer 0.50% extra over their regular fixed deposits to senior citizens, it is wrong to assume that the difference is always 0.50%. Some banks offer 0.75% and in the case of Yes Bank, they currently offer 1.0% extra over their regular fixed deposits.
The key thing that stands out from the list below is that there are several banks that offer upwards of 10.00% for a senior fixed deposit and that’s the minimum you should look for in today’s environment.
That’s the final list sorted according to the best interest rates I could find.
S.No. |
Bank |
Tenure |
Interest Rate |
---|---|---|---|
1 | Dhanalaxmi Bank |
400 days |
10.00% |
2 | Yes Bank |
15 months 15 days |
10.00% |
3 | South Indian Bank |
1 year to less than 2 years |
9.50% |
4 | Karur Vysya Bank |
Above 2 years to 3 years |
9.75% |
5 | Lakshmi Vilas Bank |
1 year |
10% |
6 | Karnataka Bank |
1 year to 5 years |
9.50% |
7 | City Union Bank |
1 year |
10% |
8 | State Bank of Patiala |
555 days |
9.50% |
9 | Axis Bank |
18 months to 5 years |
9.75% |
10 | Indian Bank |
9 months and above |
9.50% |
11 | Syndicate Bank |
364 days to 2 years |
9.25% |
12 | Bank of India |
1 to 2 years |
9.25% |
13 | Tamil Nadu Mercantile Bank |
20 months 20 days |
9.75% |
14 | Punjab and Sind Bank |
500 days |
9.75% |
15 | IDBI Bank |
1 year to 5 years |
9.75% |
16 | J&K Bank |
1 year to 10 years |
9% |
17 | Vijaya Bank |
1 year and above |
9.50% |
18 | Indian Overseas Bank |
1 – 10 years |
9.50% |
19 | ICICI Bank |
2 years to less than 5 years |
9.50% |
20 | Kotak Bank |
1 year |
9.50% |
21 | Andhra Bank |
1 year to 10 years |
9.50% |
22 | Corporation Bank |
12 months and above |
9.25% |
23 | Federal Bank |
1 year to 3 years |
9.50% |
24 | State Bank of Travancore |
1 year to 3 years |
9.25% |
25 | Canara Bank |
1 year to 10 years |
9% |
26 | Bank of Baroda |
1 year |
9.25% |
One final thing about this is if you’re opening a senior citizen fixed deposit you should be aware of form 15H which you can use to prevent the bank from deducting tax at source if your total income for that year is expected to be lesser than the taxable income limit. Here is a good link that explains form 15H and form 15G in detail.
Edit: Corrected error pointed out by Paresh