What extra do seniors get?
Most banks pay residents aged 60 and above an extra 0.25% to 0.75% on FDs — 0.50% is the most common — and some pay a little more again for those over 80. Check the bank's senior citizen rate table; the extra often applies only to deposits below a certain amount.
Government options that often pay more
| Post Office deposit | Rate, Oct–Dec 2026 |
|---|---|
| 1-year time deposit | 6.9% |
| 2-year time deposit | 7.0% |
| 3-year time deposit | 7.1% |
| 5-year time deposit | 7.5% |
| 5-year recurring deposit | 6.7% |
| Senior Citizens Savings Scheme | 8.2% |
Senior Citizens Savings Scheme (SCSS) at 8.2% (October–December 2026, fixed for your deposit's term):
- For people aged 60+ (and some retirees from 55 or 50, on conditions).
- Up to ₹30 lakh in all, for 5 years, extendable by 3 years.
- Interest paid every quarter — useful as a pension.
- Government-backed; open at a post office or authorised bank.
The RBI Floating Rate Savings Bond (8.05% for July–December 2026) is another government option with half-yearly interest.
Tax and TDS for seniors
- Interest is taxable at your slab rate, but TDS applies only above ₹1 lakh of interest a year per bank.
- If your total income is below the taxable limit, give each bank the senior citizen no-TDS declaration (long known as Form 15H) at the start of the year.
- Deductions such as the one for 5-year tax-saving deposits apply only under the old tax regime.
A simple income plan
- Keep 6–12 months of expenses in a savings account or a short FD.
- Put the core in SCSS for quarterly income.
- Ladder bank FDs across 1–5 years for the rest, choosing monthly or quarterly payout.
- Keep each bank's total under ₹5 lakh for full DICGC cover.
Read FD interest rates to compare banks.
For general information only, not investment advice or a recommendation. Oxon Fintech is a loan facilitation platform, not a SEBI-registered investment adviser, bank or mutual fund distributor, and does not sell bonds, deposits or funds. Rates and rules are as checked on the date above; confirm with the issuer, bank or fund house before investing. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.