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6 Investment Tips to Earn Higher on Senior Citizen FD Rates

Post-retirement savings are vital, and fixed deposits offer profitable returns. Senior citizens can avail of an extra ROI (0.50%-0.80% than usual FDs) while depositing a bulk amount for up to a decade. 

Many financial institutions offer attractive senior citizen fixed deposit schemes where investment assures earning monthly interest tax-free. This blog explains how to choose affordable fixed deposits to attract maximum return.

Earning greater ROI

Investment returns in fixed deposits are higher for senior citizens when maintained over 5-years. Government financial institutions offer a 6.2% annual return when investing below 2-crores for a tenure of 5-years or more. COVID indeed dragged down senior citizen FD rates. Again, FD investments worth 1-crore can guarantee you a 50,000 INR/month return.

Tax-free life savings

Senior citizen fixed deposit schemes attract bulk post-retirement investment because it’s tax-free. Those above 75-years whose sole income source is a pension or living on FD returns don’t need to file an ITR return. Senior citizens between 60-75 years are eligible for up to 50,000 INR returns through FDs. 

Private FD investment option

Private lending institutions can offer nearly 8% annual ROI. NBFCs offer higher senior citizen FD rates than government lenders. Also, investing in private FDs offering higher returns requires a greater FD limit. It offers a higher loan amount as collateral against the FD charging an inexpensive interest. Before investing in private lenders, please verify their CRISIL ratings and SEBI registrations to eliminate fraud.

Documentation to open a senior citizen fixed deposit scheme

Open FD at your doorstep with your convenient financial partner. Manage these documents beforehand:

  • Identity proof
  • PAN card
  • Adhar card (address and age proof)
  • Recent photographs
  • Latest bank statement (non-mandatory)
  • Income source (non-mandatory)

Choose virtual KYC methods to open a new senior citizen FD. Upload the documents, complete the verification, deposit the decided sum while you earn monthly interest like a pension scheme with an FD account.

More about senior citizen FD rates 

Investing in government lending institutions can earn you over 7% per annum, while private financial partners offer nearly 8% yearly. ROI varies as per the timeline of investment. For better investment returns, choose a higher timeline (5-10 years) or private lenders offering greater returns in lesser time. Even if there’s a reduction in FD returns, your investment shall pay according to the agreed ROI. 

Smart FD investment tips

If you intend to open an FD account after retirement, consider the following investment tips:

  • Never get lured after higher ROI (offering over 10% per annum is a hoax)
  • Your money stays untouched until maturation (never put all the gratuity into FD account)
  • Choosing FD makes your money immune to financial turbulence
  • FD accumulated interest is tax-free below INR 50,000/year.
  • Senior citizens may open an FD account with lenders offering a premature withdrawal facility.


Parking over 1-crore at 6% ROI fetches 50k/month through FD investment. But lending institutions are yet to raise ROI since COVID times. You can invest in mutual funds and the share market to reap benefits through your retirement gratuity. Although FD returns have decreased compared to the past, it still offers guaranteed returns while your principal stays uncompromised.

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