Is there any special interest rate for senior citizens on fixed deposits?

Yes, financial institutions commonly offer preferential interest rates on fixed deposits (FDs) for senior citizens compared to the rates provided to regular customers. This practice aims to provide enhanced financial security and benefits to older individuals.

The additional interest offered to senior citizens normally varies across different types of financial institutions, including public sector banks, private sector banks and small finance banks. Generally, senior citizens can expect to receive an interest rate that is 0.10% to 0.50% (or sometimes even higher) above the standard FD rates for comparable tenures.

The eligibility criteria for these senior citizen FD schemes usually involve being 60 years of age or older, although specific requirements may differ slightly between institutions. The other terms and conditions, such as tenure options, minimum deposit amounts, and premature withdrawal policies, generally align with those of regular FDs.

So, senior citizens do benefit from specially designated higher FD interest rates. Given that the premium over regular rates can vary significantly, senior individuals should compare the interest rates offered by several leading financial institutions for their specific age and desired deposit amount to optimise their investment returns.