Senior Citizens Fixed Deposit Interest Rates in Saraswat Bank

With its deep-rooted history in the banking sector, Saraswat Bank recognises the importance of catering to the financial needs of senior citizens. As such, they offer special fixed deposit rates for senior citizens, typically higher than the regular FD rates, ensuring better returns on their savings.

This differential interest is a gesture of appreciation for their lifetime of contributions and to support them in their golden years. Prospective depositors in the senior citizen category might find these rates particularly beneficial, providing them with an opportunity for a secure and enhanced income.

• 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: Senior citizens can secure loans against their FDs like other depositors.
• 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: Saraswat Bank, 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.

Rates for Domestic Term Deposits (w.e.f. 18th July 2023)

Deposits under Kalpataru Deposits and Recurring Deposits scheme will be accepted for a period of 12 months up to 36 months only.

i) For a Single term deposit upto 'below ₹ 2 crore’

Interest Rate on Madhukar Scheme will be at 6.75% p.a. payable quarterly.

ii) For Single term deposit of '₹ 2 crore & above'

The eligibility criteria for senior citizen FDs is that they need to be at least or above 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.

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

Identity Proof

• Aadhaar card
• Passport
• Driving Licence

Address Proof

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

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

The eligibility criteria are that the account holder must be above 60. The documents needed to open a senior citizen account are the same as the general public requirements. The difference in the general public and senior citizen rates made a significant difference over the years.