IndusInd Bank Senior Citizen FD Rates 2025

What is an IndusInd Bank Senior Citizen FD?

An IndusInd Bank senior citizen FD is a special fixed deposit designed for individuals aged 60 and above. You can choose payout options like monthly, quarterly, half-yearly, or cumulative (interest on maturity) to match income needs. The minimum deposit is ₹10,000, and you can open it either online via NetBanking/app or by visiting a branch.

View the latest IndusInd Bank FD rates and compare them for senior citizens. Let’s explore the latest rates and learn how to open an IndusInd Bank Senior Citizen FD.

Key Benefits of IndusInd Bank Senior Citizen FD

Designed for individuals aged 60 and above, this FD offers higher interest, flexible tenures, tax benefits, and easy access to funds. 

1. Auto-Renewal Facility:

   Depositors have the option to automatically renew at maturity, ensuring continuous fund growth without requiring branch visits.

2. Premature Withdrawal Facility:

   Available with minimal penalties. No penalty is charged for early withdrawals up to ₹15,000. Senior citizens may also benefit from lower penalty charges compared to regular customers.

3. Nomination Facility:

   Easily nominate a family member to ensure a smooth transfer of funds in case of unforeseen events.

4. Eligibility for Joint Accounts:

   In joint accounts, the first holder must be a senior citizen to avail of the preferential FD interest rates.

5. Usage Restrictions:

   Deposits under this scheme cannot be used as collateral for commercial borrowings.

IndusInd FD Interest Rates for Senior Citizens

Below is a simplified view of the interest rates offered to senior citizens on fixed deposits across various deposit slabs and tenures:

Deposits Less Than ₹3 Crore (Premature Withdrawal Allowed)

*IndusInd Bank FD interest rates w.e.f. June 2, 2025

Deposits ₹3 Crore to Less Than ₹5 Crore (Premature Withdrawal Allowed)

*IndusInd Bank FD interest rates w.e.f. June 2, 2025

Deposits Above ₹1 Crore to Less Than ₹3 Crore (Premature Withdrawal Not Allowed)

*IndusInd Bank FD interest rates w.e.f. June 2, 2025

Deposits Above ₹3 Crore to Less Than ₹5 Crore (Premature Withdrawal Not Allowed)

*IndusInd Bank FD interest rates w.e.f. June 2, 2025

How to Open an IndusInd Senior Citizen FD?

Senior citizens can open an FD online via NetBanking/mobile app or offline by visiting the nearest branch. Here’s how:

1. Online Method

   • Log in to Your Account: Use your registered credentials to log in securely through the bank’s website or mobile application for further actions.
   • Navigate to Fixed Deposits: Select the “Fixed Deposits” section and choose the special scheme designed for senior citizens with better interest rates.
   • Fill in Deposit Details: Enter the deposit amount, preferred tenure, interest payout frequency, and enable options for auto-renewal or nomination as needed.
   • Complete the Payment Process: Transfer the required funds from your savings account to confirm and initiate the fixed deposit for your selected terms.
   • Download and Monitor e-FD Receipt: Download the electronic FD receipt and track the deposit status via the dashboard. Use video KYC for faster verification if required.

2. Offline Method

   • Visit the Nearest Bank Branch: Go to your nearest bank branch to initiate the fixed deposit process under the senior citizen category.
   • Fill out the FD Application Form: Complete the fixed deposit form accurately, ensuring you mention your senior citizen status to avail of higher interest rates.
   • Submit Required Documents: Provide age proof, PAN card, Aadhaar, and a recent passport-size photograph to complete the verification and eligibility process.
   • Fund the Deposit and Choose Options: Deposit the chosen amount and select auto-renewal or nomination preferences based on your needs and future convenience.
   • Collect FD Receipt from the Bank: After submission and payment, collect your official fixed deposit receipt for record-keeping and future reference.

Taxation on IndusInd Bank Senior Citizen FD Interest

Fixed Deposit (FD) interest is taxable as income under "Income from Other Sources," and banks are required to deduct TDS (Tax Deducted at Source) if the interest earned exceeds ₹1,00,000 for senior citizens in a financial year. To avoid TDS deduction, senior citizens can submit Form 15H at the beginning of each financial year, provided their total taxable income is below the applicable threshold limit. 

Also, under Section 80TTB of the Income Tax Act, senior citizens can claim a deduction of up to ₹50,000 annually on their interest income from FDs and savings accounts, helping reduce their overall tax liability.

Key Takeaways

IndusInd Bank offers senior citizen FD rates of up to 8.10% per annum, depending on the deposit amount and tenure. Retirees benefit from features like auto-renewal, multiple interest payout options, and a loan against the FD. Premature withdrawal is allowed with a low penalty, and no penalty is charged for amounts up to ₹15,000. Senior citizens can also submit Form 15H to avoid TDS if their income is below the taxable limit. These features make IndusInd Bank FDs a suitable choice for building a stable and secure retirement income.