Federal Bank Senior Citizen FD Rates 2025

What is a Federal Bank Senior Citizen FD?

A Federal Bank Senior Citizen FD is a specialised fixed deposit scheme for individuals aged 60 and above. These FDs allow senior and retired persons to earn higher interest rates compared to regular savings accounts and standard fixed deposits. The minimum deposit amount is ₹1,000, making it accessible to all senior investors. There is no maximum limit, offering flexibility for higher-value investments. View the latest returns offered on Federal Fixed deposits and check the current Federal Bank FD rates.

Key Benefits of Federal Bank Senior Citizen FD

Federal Bank Senior Citizen FDs come with useful features, some of which include:

• Easy Interest Payouts: Senior citizens can receive interest monthly, quarterly, half-yearly, or yearly for regular income. They can also choose to get it all at maturity for higher returns. This helps with daily expenses or growing savings for future needs.
• Premature Withdrawal Option: Federal Bank allows the premature closure of fixed deposits. While interest is paid based on the actual tenure, a 1% penalty on the applicable rate may apply. No interest is payable if the FD is withdrawn within 7 days.
• Auto-Renewal Facility: A fixed deposit can be set to renew automatically at maturity. This allows the investment to continue growing without manual interventions. Senior citizens can choose to renew only the principal or both the principal and interest. 
• Sweep-in and Sweep-out: Federal Bank's sweep facility allows senior citizens to earn higher interest on their FDs without the hassle of constantly managing deposits. This provides a double benefit: easy liquidity from their savings account and the higher interest rates of fixed deposits.

Federal Bank FD Interest Rates for Senior Citizens 

Here’s a quick overview of the Bandhan Bank senior citizen FD rate for different tenures:

Federal Bank FD Rates for Senior Citizens Less than 3 Crore (Callable)

*Federal Bank FD interest rates w.e.f. June 12, 2025

Federal Bank FD Rates for Senior Citizens Less than 3 Crore (Non-Callable)

*Federal Bank FD interest rates w.e.f. June 12, 2025

Federal Bank FD Interest Rates for Annuity Deposits

*Federal Bank FD interest rates w.e.f. June 12, 2025

How to Open a Federal Bank Senior Citizen FD?

Follow these step-by-step instructions to open a Federal Bank Senior Citizen FD. Whether you're an existing customer or new to the bank, you can choose from easy online or offline methods.

1. Online Method

   For Existing Senior Citizen Customers

   • Log in: Access your Federal Bank Internet Banking (FedNet) or the FedMobile App using your credentials.
   • Navigate to Deposits: Look for the 'Deposits' section, usually under 'Accounts' or 'Investments'.
   • Select 'Open Fixed Deposit': Choose the option to open a new Fixed Deposit.
   • Enter FD Details:
     • Input the desired deposit amount.
     • Select the tenure that suits your needs (from 7 days up to 10 years).
     • Ensure you select the Senior Citizen FD type, or that the higher senior citizen interest rate is reflected.
     • Choose your preferred interest payout option (e.g., monthly, quarterly, or cumulative at maturity) to suit your income needs.
   • Provide Nominee Details: Fill in the details of your nominee (the person who will receive the funds in case of an unforeseen event).
   • Confirm & Submit: Review all the information you have entered carefully and then submit your request.
   • Instant Creation: Your Senior Citizen FD will be created instantly, and you'll receive confirmation via your registered mobile number and/or email.

   For New Senior Citizen Customers

   • Visit Website: Go to the official Federal Bank website and look for options like 'Open FD Online' or 'Digital Fixed Deposit'.
   • Complete Digital Onboarding/KYC: You'll be guided through a secure digital Know Your Customer (KYC) process. This may involve using your Aadhaar and PAN details, or a Video KYC (V-KYC) call for verification, all from the comfort of your home.
   • Fill FD Form: Once KYC is complete, complete the online Fixed Deposit form. 
   • Make Online Payment: Make the initial deposit payment using various online methods (e.g., Net Banking from another bank, UPI).
   • Receive Confirmation: Once your application is processed and the payment is successful, you will instantly receive your Senior Citizen FD details and confirmation.

2. Offline Method

   For Both New and Existing Senior Citizen Customers

   • Visit Nearest Branch: Head to your closest Federal Bank branch.
   • KYC Documents (for New Customers): If you are a new customer, ensure you carry your KYC documents. This typically includes:
     • Identity Proof: PAN Card, Aadhaar Card, Passport, Voter's ID.
     • Address Proof: Aadhaar Card, Passport, Utility Bills (Electricity, Telephone).
     • Age Proof: While typically covered by Aadhaar/PAN, carrying additional proof like a Senior Citizen ID or birth certificate can be helpful.
     • Recent Passport-sized Photographs.
   • Request Application Form: Ask a bank official for the Fixed Deposit application form. Make sure to specify that you want to open a Senior Citizen Fixed Deposit.
   • Fill Application Form: Carefully fill out the form. Specify the deposit amount, your chosen tenure, and preferred interest payout (e.g., monthly or cumulative income). Ensure you mention your senior citizen status.
   • Make the Deposit: You can deposit the investment amount through cash, cheque, demand draft, or by debiting your Federal Bank account.
   • Receive Confirmation: The bank will provide an FD receipt and confirmation once your Fixed Deposit is successfully opened.

Taxation on HDFC Bank Senior Citizen FD Interest

Interest earned by senior citizens on Fixed Deposits (FDs) with Federal Bank is fully taxable under the Income Tax Act, 1961. The interest is added to your total income and taxed according to your applicable income tax slab. For senior citizens, the Federal Bank deducts Tax Deducted at Source (TDS) on FD interest only if the total interest earned in a financial year exceeds ₹1,00,000. The standard TDS rate is 10% if you have provided your PAN; if PAN is not submitted, the TDS rate increases to 20%.

Senior citizens can submit Form 15H to avoid TDS if their total income is not taxable. Under Section 80TTB, they can also claim a deduction of up to ₹50,000 on interest income. This benefit is available only under the old tax regime.

Key Takeaways

Federal Bank Senior Citizen Fixed Deposits offer 0.50% higher interest rates than regular FDs for those aged 60 and above. You can open an account online or at a branch, with flexible tenures ranging from 7 days to 10 years. Interest payout options include monthly, quarterly, or at maturity, giving seniors the flexibility to choose how they receive their returns. This makes it a convenient and secure savings option for retirees seeking a steady income.