By Pramod Kumar · B.Tech NIT Nagpur | M.Tech IIT Roorkee | Founder, BookmyFD · July 5, 2026 | 9 min read
If you are 60 years or above, Fixed Deposits are one of the safest and most reliable ways to grow your savings. And the good news is — banks give you extra interest just for being a senior citizen. This guide covers everything you need to know to make the most of your FD in 2026.
.jpg)
📑 Table of Contents
1. Who Qualifies as a Senior Citizen?
In India, banks define senior citizens as follows:
| Category | Age | Benefit |
|---|---|---|
| Senior Citizen | 60 years and above | 0.25% to 0.50% extra interest |
| Super Senior Citizen | 80 years and above | 0.50% to 0.60% extra interest (some banks) |
You must provide age proof (Aadhaar card, PAN card, or birth certificate) when opening an FD to get the senior citizen rate.
2. How Much Extra Interest Do You Get?
Most banks offer 0.50% per year extra over the regular FD rate. This may sound small, but it adds up significantly over time.
Same FD at 8.0% (senior citizen) = ₹2,59,900 interest.
Extra earning: ₹16,700 — just for being 60+.
3. Best Senior Citizen FD Rates 2026
| Bank / NBFC | Regular Rate | Senior Rate | Best Tenure |
|---|---|---|---|
| Suryoday Small Finance Bank | 9.50% | 10.00% | 2–3 Years |
| Unity Small Finance Bank | 9.00% | 9.50% | 1001 Days |
| Utkarsh Small Finance Bank | 8.50% | 9.10% | 2 Years |
| Shriram Finance (NBFC) | 8.84% | 9.34% | 2–3 Years |
| Bajaj Finance (NBFC) | 8.05% | 8.30% | 24–36 Months |
| IDFC FIRST Bank | 7.90% | 8.40% | 400–500 Days |
| Yes Bank | 7.75% | 8.25% | 18 Months |
| SBI | 7.25% | 7.75% | 1–2 Years |
| HDFC Bank | 7.25% | 7.75% | 1–3 Years |
* Rates as of July 2026. Verify on the bank's official website before investing.
4. Tax Benefits — TDS & Form 15H
.jpg)
| Tax Rule | Regular Investor | Senior Citizen (60+) |
|---|---|---|
| TDS-free interest limit | ₹40,000/year per bank | ₹50,000/year per bank |
| TDS rate (above limit) | 10% | 10% |
| Form to avoid TDS | Form 15G | Form 15H |
| Section 80TTB deduction | Not applicable | ₹50,000/year deduction on interest income |
How to Submit Form 15H
Check eligibility
Your total income (after deductions) must be below the taxable limit (₹3 lakh for 60–80 age; ₹5 lakh for 80+).
Download Form 15H
Available on the bank's website or the Income Tax Department portal (incometax.gov.in).
Fill and submit to your bank
Submit at the branch or via NetBanking at the start of every financial year (April).
Bank stops TDS deduction
Once accepted, the bank will not deduct TDS on your FD interest for that financial year.
5. How to Open a Senior Citizen FD
Compare rates on BookmyFD
Check all senior citizen rates at bookmyfd.in — sorted by highest rate.
Choose your bank & tenure
Pick based on rate, safety (DICGC), and when you may need the money.
Visit branch or use NetBanking
Most banks allow FD booking online. Carry Aadhaar, PAN, and age proof for the branch.
Select "Senior Citizen" option
Ensure you select or inform the bank that you qualify — the extra rate is not always automatic online.
Submit Form 15H
Do this at the same time to avoid TDS from the very first interest payment.
6. How Safe Is Your FD?
PSU Banks
State Bank of India, Bank of Baroda — backed by Government of India. Extremely safe. Lower rates.
Private Banks
HDFC, ICICI, Axis — RBI-regulated, DICGC-insured up to ₹5 lakh. Safe with better rates than PSU.
Small Finance Banks
Suryoday, Unity, Utkarsh — RBI-regulated and DICGC-insured. Highest rates. Keep each FD under ₹5 lakh.
NBFCs
Bajaj Finance, Shriram Finance — NOT DICGC-insured. Higher risk. Only invest if credit rating is AA or above.
7. Smart Tips to Maximise Returns
FD Laddering
Split your money into FDs of 1 year, 2 years, 3 years. As each matures, reinvest at the best rate available.
Choose Cumulative FD
Cumulative (reinvested) FDs earn more due to compounding. Choose non-cumulative only if you need monthly income.
Nominate a family member
Always add a nominee. This ensures your FD money reaches your family easily without legal hassle.
Auto-renewal carefully
Auto-renewal is convenient but may lock you at a lower rate. Review rates before renewal each time.
Spread across 2–3 banks
Don't put all savings in one bank. Spread across 2–3 banks for safety and rate diversification.
Keep FD documents safe
Store your FD receipt/certificate safely and inform your family members about your FD investments.
8. Frequently Asked Questions
👴 Find the Best Senior Citizen FD Rate
Compare senior citizen FD rates across 40+ banks and NBFCs — free, transparent, no sign-up needed.
Compare Senior Citizen Rates →Disclaimer: This article is for informational purposes only. FD rates are as of July 2026 and subject to change. Verify rates on the institution's official website before investing. BookmyFD is a comparison platform and does not offer financial advice.