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Senior Citizens Fixed Deposit Interest Rates in Federal Bank

Updated 15 Dec 2023

Financial security in the golden years is a priority for many. Recognizing this, Federal Bank offers special Fixed Deposit schemes tailored for senior citizens, ensuring they get the most out of their savings. With attractive interest rates typically higher than regular deposits, Federal Bank's senior citizen FD rates aim to provide a lucrative savings avenue.

This introduction delves into the nuances of these FD rates in Federal Bank, exploring their benefits, features, and why they are a preferred choice for many in their post-retirement phase. Dive in to learn more about maximizing your returns with Federal Bank.

Features of Senior Citizen FD

  • Enhanced Interest Rates: Senior citizens typically receive a bonus interest rate on top of the regular FD rates. The specific rate hinges on the bank's current offerings.
  • Qualification: Only individuals 60 or older can establish a senior citizen FD account.
  • Duration: Depositors can choose from a diverse range of FD durations, usually between 7 days and 10 years.
  • Early Withdrawal: Although penalties may apply, senior citizens often benefit from more accommodating terms for premature FD closures.
  • Borrowing Options: Like other depositors, senior citizens have the privilege of securing loans against their FDs.
  • Beneficiary Assignment: The bank allows a beneficiary to inherit the FD funds after the account holder's passing.
  • Tax Deduction at Source (TDS) Implications: Earnings from interest are taxable under Indian tax regulations. Yet, by submitting Form 15H, eligible senior citizens can avoid TDS deductions.
  • Automatic Renewal: IDBI, among other banks, possibly features an automatic renewal mechanism, ensuring the FD's continuation post-maturity unless directed otherwise.
  • Deposit Limits: The deposit range for a senior citizen FD can differ. While a minimum threshold is often set, a maximum limit might be absent.
  • Unique Offerings: Periodically or based on bank initiatives, exclusive perks or attributes tailored for senior citizens may be presented.

Interest Rates of Senior Citizen FD in Federal Bank

Interest rates for Resident Term Deposits effective from 17-05-2023 (Rates in % p.a)

PeriodSingle Deposit Less than ₹200 Lakhs - Senior Citizen
7 days to 29 days3.50%
30 days to 45 days3.75%
46 days to 60 days4.50%
61 days to 90 days5.25%
91 days to 119 days5.25%
120 days to 180 days5.50%
181 days to 270 days6.25%
271 days to less than 1 year6.50%
1 year to less than 15 months7.30%
15 months to 2 years7.75%
Above 2 years to less than 3 years7.25%
3 years to less than 5 years7.10%
5 years and above7.25%

Eligibility Criteria

The eligibility criteria for the senior citizen FDs is that they need to be at least or above the age of 60 on the day of opening the FD account. They typically need to be residents to open a senior citizen FD; However, NRIs can also open accounts through NRE and NRO accounts.

Documents Required

The documentation required is similar to that of a normal FD account opening. One metric being essential is your age proof.

 

Identity Proofs

  • Aadhar Card 
  • Passport
  • Driver’s License

 

Address Proof

  • Gas Bill 
  • Utility Bill 
  • Bank Statement 
  • Cancelled Cheque

Age proof is mandatory to avail of a Senior Citizen FD account.

FAQs

What special interest rates are offered to senior citizens by Federal Bank on FDs?

Federal Bank typically offers senior citizens a higher interest rate on FDs than regular deposits. The exact rate might vary based on the deposit tenure and prevailing economic conditions.

Who qualifies as a senior citizen at Federal Bank?

Generally, individuals aged 60 years and above are considered as senior citizens by most banks, including Federal Bank.

Is there a specific tenure for senior citizen FDs at Federal Bank?

Federal Bank offers a range of tenures for FDs. However, the special interest rate for senior citizens is applicable across various tenures.

Can I open a joint FD account with a senior citizen rate?

Yes, but typically, the primary account holder must be a senior citizen to avail of the special rates.

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Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.

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