Bajaj Finance and Shriram Finance offer lucrative rates of interest at 8.20% per annum and 9.10% per annum respectively on senior citizen fixed deposits.
The rate of interest in an FD is directly proportional to the tenure of an FD. This means, the higher the tenure of your FD, the higher the rate of interest.
Senior citizen fixed deposits are taxable. There is a 10% deduction in the form of TDS if the amount of interest in a senior citizen fixed deposit exceeds Rs 50,000 in a financial year.