Senior Citizen FD Calculator

Most banks offer 0.25% to 0.50% extra interest for senior citizens (60+ age) and sometimes 0.75% to 1% for super senior citizens (80+ age). For example, if SBI offers 7.0% for regular FD, senior citizens get 7.5%. Some Small Finance Banks offer up to 9% for senior citizens.

Section 80TTB allows senior citizens (60+) a deduction of up to ₹50,000 on interest income from bank FDs, post office deposits, and savings accounts. This means ₹50,000 interest is completely tax-free. Regular citizens only get ₹10,000 exemption under 80TTA (savings account interest only, not FD).

Small Finance Banks (SFBs) offer the highest rates: Unity SFB (8.5-9%), Suryoday SFB (8.25-8.75%), AU SFB (7.75-8%). Among major banks: Bajaj Finance (8.05-8.3%), HDFC Bank (7.0-7.5%), SBI (7.0-7.5%). Post Office SCSS (8.2%) is the highest government-backed option. Split deposits across banks to stay within ₹5L DICGC insurance per bank.

Submit Form 15H to your bank at the start of each financial year if your total income is below the taxable limit (₹3L for senior citizens under old regime, ₹7L under new regime). This prevents TDS deduction. Without Form 15H, banks deduct 10% TDS if interest exceeds ₹50,000/year. If TDS is already deducted, claim refund via ITR filing.

SCSS (Senior Citizen Savings Scheme) at 8.2% beats most bank FDs (6.5-7.5%). SCSS advantages: highest government-backed rate, Section 80C benefit, quarterly interest payout. SCSS disadvantages: ₹30L max limit, 5-year lock-in, only for 60+ (55+ for retired defense). Best strategy: invest ₹30L in SCSS first, remaining in high-rate SFB FDs.