When it comes to investments, fixed deposits are frequently the senior citizen's first choice, and financial institutions are very aware of this. In order to draw in seniors, banks frequently maintain their lucrative fixed deposit interest rates. Fixed deposits, term deposits, and time deposits all draw investors who are risk-averse due to their safe returns.
Senior citizens get an exemption from taxes as the interest on deposit is tax-exempt under Section 80TTB of the Income Tax Act which allows them to claim a deduction of up to Rs. 50,000.
HDFC Bank interest rate for senior citizen:
The HDFC Bank offers a 2.75 percent regular fixed deposit interest rate on deposits made for seven to 14 days. On a deposit for a tenor of 3 years, 1 day to 5 years, the offered rate for senior citizens is 6.60 percent. The applicable rate is 6.5 percent for time periods longer than five years (5 years and one day to 10 years).
SBI Bank FD interest rate for senior citizen:
SBI offers a higher interest rate for senior citizens SBI Pensioners of age 60 years and above get an interest of 0.50% above the regular rate. It offers an interest rate of 6.45% for senior citizens for an amount below Rs 1 crore for the period of five years and up to 10 years.
ICICI Bank interest rate for senior citizen:
The ICICI Bank requires a minimum deposit of Rs 10,000 to open an FD. For any fixed deposit term longer than three years, the lender offers senior citizens a rate of 6.60 percent.
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