Federal Bank FD Rates for Senior Citizens
A fixed deposit (FD) is a financial deposit that pays a higher interest rate than a typical savings account. Fixed deposit schemes also offer guaranteed returns for a fixed tenure. The return on your fixed deposit investment varies depending on the principal amount, interest rate, and tenure. Individuals aged 60 and above can earn an additional 0.50 percent interest rate above standard FD rates. Let us look at the Federal Bank FD rates for senior citizens.
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Fully Tax-Free* (unlike FD), Life Cover Included
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Features of IDFC Bank Fixed Deposit
| BANKS | GENERAL CITIZENS | SENIOR CITIZEN |
| Axis Bank FD Rates | 2.50% - 5.75% | 2.50% - 6.50% |
| Bandhan Bank FD Rates | 3.00% - 5.00% | 3.75% - 5.75% |
| Bank of Baroda FD Rates | 2.80% - 5.25% | 3.30% - 6.25% |
| Bank of India FD Rates | 2.85% - 5.05% | 3.35% - 5.55% |
| Canara Bank FD Rates | 2.90% - 5.40% | 2.90% - 5.90% |
| Central Bank of India FD Rates | 2.75% - 5.00% | 2.90% - 3.25% |
| DBS Bank FD Rates | 2.50% - 5.50% | 3.50% - 6.00% |
| HDFC Bank FD Rates | 2.50% - 5.60% | 3.00% - 6.35% |
| IDFC Bank FD Rates | 2.50% - 6.00% | 3.00% - 6.50% |
| Indian Bank FD Rates | 2.90% - 5.15% | 3.40% - 5.65% |
| Indian Overseas Bank FD Rates | 3.40% - 5.20% | 3.90% - 5.70% |
| IndusInd Bank FD Rates | 2.50% - 6.00% | 3.00% - 6.50% |
| Punjab National Bank FD Rates | 2.90% - 5.25% | 3.50% - 5.75% |
| SBI FD Rates | 5.30% - 5.40% | 5.80% - 6.20% |
| UCO Bank FD Rates | 2.55% - 5.05% | 3.80% - 6.30% |
| Yes Bank FD Rates | 3.25% - 6.25% | 3.75% - 7.25% |
Federal Bank FD rates for senior citizens
The Federal Bank gives elderly persons over the age of 60 a higher interest rate than the general public to encourage them to invest in fixed deposits. The following are the Federal Bank FD rates for senior citizens in 2021:
| Tenure | Regular Citizens Rate of Interest | Senior Citizens Rate of Interest |
| (For deposits less than Rs. 2 crores) | ||
| 7-29 days | 2.50% | 3.00% |
| 30-45 days | 2.75% | 3.25% |
| 46-90 days | 3% | 3.50% |
| 91-180 days | 3.75% | 4.25% |
| 181-270 days | 4% | 4.50% |
| 271-364 days | 4.40% | 4.90% |
| 1 year to less than 16 months | 5.10% | 5.60% |
| 16 months | 5.50% | 6.00% |
| 16 months 1 day to 1 year 11 months 29 days | 5.10% | 5.60% |
| 1 year to 1 year 11 months 29 days | 5.10% | 5.60% |
| 2 years to 4 years 364 days | 5.35% | 5.85% |
| 5 years and above | 5.60% | 6.25% |
*Interest rates are subject to change.
Features of the Federal Bank FD
Here are the various elements of the senior citizen fixed deposit program offered by Federal Bank:
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The fixed deposit tenure for senior citizens ranges from 7 days to 5 years and above.
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The bank provides interest rates in the range of 3 to 6.25 % p.a.
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These fixed deposits are covered under RBI's Deposit Insurance Scheme, where all deposits of a depositor up to Rs. 5 lakhs are insured by DICGC.
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An auto-renewal facility is available.
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A nomination facility for fixed deposits is also available. Senior citizens can appoint one nominee as per conditions.
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Interest on the deposit is paid at the time of maturity.
Benefits of the Federal Bank FD
Some of the advantages of creating a Federal Bank FD account are listed below:
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Only upon the maturity of the deposit, the interest is paid.
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On its fixed deposits, Federal Bank additionally offers a nomination option.
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Senior citizens are entitled to additional interest ranging from 0.25 percent to 0.65 percent.
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On the deposits, there is an option for auto-renewal.
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Increase the amount of money you deposit and earn a better rate of return.
About Federal Bank Fixed Deposit Interest Rate Calculator
Federal Bank Fixed Deposit calculator is an easy-to-use, hassle-free tool that helps in quick calculation of the maturity amount and the interest earned receivable at the end of the policy tenure. By entering some basic details, you can calculate the correct FD amount. Here are the steps that an investor needs to follow to calculate Fixed Deposit rates on the FD Calculator:
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The amount that is invested
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The Rate of Interest offered
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The tenure of the Fixed Deposit Account
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The compounding period, that is, yearly, half-yearly, quarterly, or monthly
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The FD Amount
Once entered the following details, an investor will come to know:
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The maturity value of the FD
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The total interest earned during the complete tenure
Eligibility for opening a senior citizen FD account with Federal Bank
Individuals who are 60 years old or older are eligible to open a senior citizen FD account. They must necessarily be residents of India and produce all the required documents.
To open a senior citizen fixed deposit account at Federal Bank, depositors must go to the bank and complete the process by filling out an appropriate FD form. They must also deposit the investment amount using a cheque or a demand draft. They can also apply online on the bank's website.
Documents required to open Senior FD
Customers should have the following documents ready when opening an FD with Federal Bank:
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Fixed deposit application form (duly filled out and signed)
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KYC documents for ID and residency verification (Passport, Aadhaar / UID, Voter's ID card, etc.)
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Photographs of depositor and nominee, if any
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PAN Card and Age proof
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Nominee details and their identification proof
Factors that affect Federal Bank FD Rates for Senior Citizens
Various factors influence senior citizen fixed deposit rates. Here are these factors:
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Tenure: Fixed deposit interest varies greatly depending on the term chosen when the investment is made. Many lenders provide long-term FDs with high interest rates.
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Invested Amount: The interest rate on a fixed deposit is also influenced by the total amount invested in the instrument.
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Renewals: By using the auto-renewal option, investors can earn higher interest rates on fixed deposits. It's also no longer necessary to keep track of renewal dates.
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Age: The investor's age is also a factor in deciding the rate of interest on a fixed deposit. When compared to regular investors, senior citizens typically earn better interest rates.
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Economic Circumstances: The interest rates on fixed deposits are heavily influenced by the country's current economic situation and monetary and fiscal policies.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
FAQ's
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Q. Who is ineligible to open a Senior Citizens Savings Scheme account?
Ans: NRIs, PIOs, and Hindu Undivided Families are ineligible to register for a senior citizen FD account. If you are below 60 years of age, you may not be eligible to apply for these fixed deposits. You can confirm it with the bank before making an investment decision. -
Q. Can I open an FD account with Federal Bank online?
Ans: Yes, you can visit the official website of the bank and apply with the help of a bank’s employee. First, you need to fill an application form and then submit the KYC documents. -
Q. What are the advantages of being a senior citizen?
Ans: India's senior citizens can benefit from various government schemes with senior citizen benefits, income tax reductions, savings on railway tickets and airfare, and more significant deductions on health insurance premiums under Section 80D of the Income Tax Act. In addition, senior citizens also enjoy the benefit of higher interest rates in investments in FDs. -
Q. Can I change the tenure of my existing FD account with Federal Bank?
Ans: No, once you have opened an FD account with Federal Bank, you cannot alter the fixed deposit account tenure. However, you can close your existing fixed deposit account and open a new account with a new tenure. -
Q. Does the Federal Bank provide a loan against a fixed deposit?
Ans: Federal Bank offers loans against its own fixed deposits up to 90% of the deposit value. However, the bank will not provide you with a loan against the FD of any other bank.
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable
tax slabs post 31st march 2023
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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