Taxation under senior citizen fixed deposit scheme
- Taxation: Interest earned on Senior Citizen FDs is taxable as part of the senior citizen's total income.
- TDS Deduction: Financial institutions deduct TDS at 10% if the annual interest income exceeds Rs. 5,000.
- Section 80TTB Deduction: Senior citizens are eligible for a tax deduction of up to Rs. 50,000 on interest earnings under Section 80TTB of the Income Tax Act, reducing their taxable income.
- Form 15H: Senior citizens whose total income falls below the taxable threshold can submit Form 15H to their bank, ensuring no TDS is deducted from their interest income.
Use the Fixed Deposit Calculator to estimate your returns and maximize your savings with Bajaj Finance’s highest Senior Citizen FD rates
Benefits of FD for senior citizens
- Higher Interest Rates: Senior citizens get higher interest rates on Fixed Deposits (FDs), helping them earn more compared to regular customers.
- Steady Income: FDs provide a regular income, which is helpful for daily expenses. You can choose monthly, quarterly, half-yearly, or yearly payouts as per your needs.
- Safe Investment: FDs are secure and ensure your invested money is protected, making them a reliable choice for savings.
- Easy Access to Funds: While FDs are fixed-term investments, you can take a loan against them in case of an emergency without breaking the deposit.
- Simple Process: Opening and managing an FD is easy, making it a good option for senior citizens who want a hassle-free investment.
- Retirement Security: Senior Citizen FDs help in retirement planning by offering stable returns and protecting your savings.
Senior Citizen FD Eligibility
All resident Indians above the age of 60 years of age can apply for senior citizen FD. The investor must have completed 60 years on the date on which he/she Open FD with Bajaj Finance.
Non-Resident Indians (NRIs), Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI) can connect with our representative or write to us on wecare@bajajfinserv.in.
Documents Required for Senior Citizen FD Account
Below are the documents required for applying to Senior citizen fixed deposit by Bajaj Finance.
- PAN Card
- FD account opening application form
- KYC Documents (Aadhar card/passport/driving license/voter ID)
- Passport-size photographs
- Form 15H or self-declaration form
How to Open a Senior Citizen FD Account
Senior citizens can open a fixed deposit (FD) account either by visiting a bank branch or through online banking. Many banks now allow online submission of FD account opening forms. While opening the account, individuals can choose their preferred interest payout frequency—monthly, quarterly, or annually.
For post office FDs, visit the post office, fill out the FD opening form, and deposit the investment amount via cheque or demand draft.
Senior Citizen FD Eligibility
Individuals aged 60 years and above are eligible to open a senior citizen FD. Some banks also offer higher interest rates for “super senior citizens,” typically those aged 80 and above, providing better returns than regular senior citizens or general depositors.
Documents Required for Senior Citizen FD
- PAN Card
- Completed FD account opening form
- KYC documents (Aadhaar, passport, driving license, or voter ID)
- Passport-size photographs
- Form 15H or a self-declaration form
How to Invest in Bajaj Finance Fixed Deposit
Investing in a Bajaj Finance online FD is quick and easy. Follow the steps below:
- Click on 'Invest Online' to open our online form
- Enter your phone number, date of birth and OTP
- Existing customers only need to verify their details
- If you’re a new customer, you will be asked to enter your basic details for KYC
- Choose the deposit amount, tenor, interest payout type and your bank details
- Pay the amount with net banking or UPI
After a successful payment, your deposit will be booked, and you’ll receive a confirmation via email and SMS within 15 minutes.