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Calculate enhanced returns for senior citizens including the special 0.50% interest premium and 80TTB tax checks.
₹14,49,948
Total Effective Rate
7.50%
₹10,00,000
₹4,49,948
Your estimated average yearly interest (₹89,990) exceeds the ₹50,000 tax-free limit under Sec 80TTB. You will be taxed on the excess amount, and TDS may apply. Submit Form 15H if your absolute total income is non-taxable.
In India, an individual who has completed 60 years of age is considered a senior citizen for banking purposes. Super senior citizens are those above 80 years of age.
Banks typically offer an additional interest rate of 0.50% (50 basis points) over the regular public rate for senior citizen fixed deposits. Some banks offer an even higher premium for super senior citizens or special tenure deposits.
Under Section 80TTB of the Income Tax Act, senior citizens can claim a deduction of up to ₹50,000 per financial year on the interest income earned from deposits (savings accounts, FDs, recurring deposits) held with banks, post offices, or cooperative banks.
TDS (Tax Deducted at Source) is deducted at 10% only if the total interest earned across all branches of the bank exceeds ₹50,000 in a financial year. If your total income is below the taxable limit, you can submit Form 15H to the bank to request no TDS deduction.
If you need a regular monthly or quarterly income to meet your post-retirement living expenses, choose a Non-Cumulative FD. If you have other sources of income (like a pension) and want the money to grow, choose a Cumulative FD for the power of compounding.