Fixed deposit interest rates for senior citizens: Avail interest rate of up to 8.1% on 3-year bank fixed deposits; check complete list here

Fixed deposit interest rates for senior citizens: Several private sector banks provide senior citizens with an interest rate of up to 8.1% on fixed deposits (FDs) with a three-year tenure. These rates are applicable to FDs below Rs 2 crore.
Below is a compilation of private sector banks providing senior citizens with an interest rate of up to 8.1% on fixed deposits (FDs), as listed by ET:
DCB Bank senior citizen FD rates
Senior citizens can avail an interest rate of 8.1% on fixed deposits (FDs) maturing between 26 months and less than 37 months at DCB Bank.
RBL Bank senior citizen FD rates
RBL Bank provides an interest rate of 8% on fixed deposits for senior citizens maturing between 24 months 1 day and 36 months.
IndusInd Bank senior citizen FD rates
IndusInd Bank provides an interest rate of 8% on fixed deposits for senior citizens maturing between 2 years 9 months and 3 years 3 months.

(Data as of January 3, 2024) (Source: Paisabazaar.com quoted by ET)
IDFC Bank senior citizen FD rates
IDFC Bank provides a 7.75% interest rate for fixed deposits held by senior citizens maturing between 2 years 1 day and 3 years.
ICICI Bank senior citizen FD rates
ICICI Bank provides a 7.5% interest rate for senior citizens on fixed deposits maturing between 2 years 1 day and 3 years.
When does TDS get deducted from senior citizen FDs?
Senior citizens should be aware that if the cumulative interest income from all fixed deposits in a specific bank exceeds Rs 50,000, the bank will apply a tax deducted at source (TDS). Currently, the TDS rate is 10%. However, if a senior citizen fails to provide their permanent account number (PAN), the TDS rate becomes 20%. An exception is that if a senior citizen’s gross income does not surpass the basic exemption limit, they can submit Form 15H to banks to prevent TDS deduction. Moreover, in the scenario where a senior citizen has a gross income exceeding the basic exemption limit, they have the opportunity to receive a TDS refund. This applies if their net tax liability is lower than the TDS amount deducted or if it is nil. However, to avail of this option, a senior citizen must file their income tax return (ITR).