Top 4 Commercial Banks That Give Up To 7% Returns On FDs For Senior Citizens

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Investment

oi-Vipul Das

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Updated: Monday, December 7, 2020, 18:55 [IST]

On December 4, the Monetary Policy Committee agreed to hold repo rates steady and retained the ‘accommodative’ policy agenda despite high inflation and some indicators of growth in the economy. Alterations in the monetary policy of the Reserve Bank of India (RBI), such as the repo rate, the base rate, the banks’ internal liquidity stance, economic circumstances and the pace of credit demand, are the factors on which banks’ fixed deposits rely. For FD investors, this is good news because banks will not cut interest rates on fixed deposits anymore. The banks that bid FD rates ranging from 7 days to 10 years are the State Bank of India (SBI), ICICI Bank, HDFC Bank and YES Bank. Depending on the deposit amount, type of depositor and maturity period FD interest rates of different banks differs.

Top 4 Commercial Banks That Give Up To 7% Returns On FDs For Senior Citizens

SBI FD Rates

India’s largest commercial giant SBI promises its general investors interest rates of 2.9 percent to 5.4 percent and 3.4 percent to 6.2 percent on retail FDs to its senior citizens’ investors. To sync them with benchmark rates, the SBI adjusts interest rates periodically. For fixed deposits up to Rs 2 crore, SBI provides eight maturity alternatives. The period of maturity starts from seven days and lasts to 10 years.

Tenure General Public Senior Citizens
7 days to 45 days 2.90% 3.40%
46 days to 179 days 3.90% 4,4%
180 days to 210 days 4.40% 4.90%
211 days to 365 days 4.40% 4.90%
1 year to 2 years 4.90% 5.40%
2 years to 3 years 5.10% 5.60%
3 years to 5 years 5.30% 5.80%
5 years to 10 years 5.40% 6.20%

ICICI Bank FD Rates

ICICI Bank proposes 2.50 percent to 5.50 percent to the general public on fixed deposits maturing in 7 to 14 days and an additional 0.5 percent to elderly people. These rates are already effective since 21 October.

Tenure General Public Senior Citizens
7 days to 29 days 2.50% 2.90%
30 days to 90 days 3% 3.50%
91 days to 184 days 3.50% 4%
185 days to 365 days 4.40% 4.90%
1 year to 1.5 years 4.90% 5.40%
2 years 1 day to 3 years 5.15% 5.65%
3 years 1 day to 5 years 5.35% 5.85%
5 years 1 day to 10 years 5.50% 6%

HDFC Bank FD Rates

HDFC Bank, promises general investors with 2.5 percent for 7 to 14 days and an additional 0.5 percent on fixed deposits for elderly people with 12 maturity options. The period of maturity ranges within 7 days to 10 years. The bank has updated its fixed deposit interest rates with force from 13 November.

Tenure General Public Senior Citizens
7-14 days 2.50% 3%
15-29 days 2.50% 3%
30-45 days 3% 3.50%
46-60 days 3% 3.50%
61-90 days 3% 3.50%
91 days – 6 months 3.50% 4%
6 months – 9 months 4.40% 4.90%
1 year 1 day – 2 years 4.90% 5.40%
2 years 1 day – 3 years 5.15% 5.65%
3 years 1 day – 5 years 5.30% 5.80%
5 years 1 day – 10 years 5.50% 6.25%

Yes Bank FD Rates

Yes Bank offers interest rates for deposits of up to Rs 2 crore in the range of 3.5 per cent to 7 per cent for the general public and 0.50 per cent extra for senior citizens. The revised interest rates are in force from November 5.

Tenure General Public Senior Citizens
7 days to 14days 3.50% 4%
15 days to 45 days 4% 4.50%
46 days to 90 days 4.50% 5%
3 months to 6 months 5% 5.50%
6 months to 9 months 5.50% 6%
9 months to 1 year 5.75% 6.25%
1 year 1 day to 2 years 6.75% 7.25%
2 years 1 day to 3 years 7% 7.50%
3 years 1 day to 10 years 6.50% 7%

Top 4 Commercial Banks That Give Up To 7% Returns On FDs For Senior Citizens

Taxation

At your tax slab rate, FD Interest is taxable along with relevant surcharge/cess. For instance, if you have a gross annual income of Rs 10 lakh, you’ll be on the 30 percent tax slab. Let’s assume that Rs 1 lakh is your FD interest. It is going to bear a Rs 31,200 tax (tax rate of 30 percent and 0.4 percent cess). If the interest level for the entire fiscal year reaches Rs 10,000 for AY 2019-20, the TDS limit on fixed deposits (FDs) is 10 percent. This TDS deduction cap on FD is raised to Rs. 40,000 yearly in the provisional budget 2019, which is effective in AY 2020-21. The TDS limit on fixed deposit interest is 20 percent under current income tax laws if you do not furnish the bank with your PAN Card.

A fixed deposit is an investment strategy where an amount of money can be deposited for a specified period and interest can be received on it. The investor earns the interest received along with the principal sum he has deposited after the completion of maturity of the fixed deposits. FDs up to Rs. 5 lakh are guaranteed by the Deposit Insurance Guarantee Corporation of India (DIGCI) which makes it a secure investment vehicle. You can submit or use form 15G/15H if your overall income for the year is below Rs 2.5 lakh. This indicates that the bank does not subtract TDS so the revenue in the taxable slabs does not decline and you are not responsible for paying income tax.

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