Plan your investment
What Our Plans Cover
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Deposits at the enhanced senior ci...
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Cumulative and periodic payout opt...
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Tenures from six months to ten yea...
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Nomination facility
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Premature withdrawal
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Loan or overdraft against the depo...
Who Can Consider This Plan?
- Indian resident individual, HUF, trust, firm or company
- NRIs, through NRE, NRO or FCNR deposits
- Minors, through a guardian
- PAN, required to avoid a higher rate of tax deduction at source
- Completed KYC with the institution
What May Not Be Covered?
- The enhanced rate for depositors below sixty
- Tax exemption on interest above the 80TTB limit
- DICGC cover above ₹5 lakh per depositor per bank
- The full rate on premature withdrawal
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Senior citizen deposits carry an additional rate over standard deposits, typically half a percentage point, available to depositors aged sixty and above. Some banks offer a further increment for depositors above seventy-five.
The larger benefit is on tax rather than rate. Section 80TTB exempts interest income from deposits up to fifty thousand rupees a year for senior citizens — against ten thousand under Section 80TTA for others, which covers savings account interest only. That difference is substantial for a retiree living on deposit income.
Form 15H is the practical companion. Where total income is below the taxable threshold, submitting it prevents the bank deducting tax at source, which would otherwise have to be reclaimed through a return months later — an unnecessary cash-flow problem for someone living on that interest.
Who should consider it
Depositors aged sixty and above. Retirees living on interest income. Families placing deposits in a parent's name, where both the higher rate and the larger exemption apply.
Benefits
- Additional interest rate, commonly 0.5% above standard
- Section 80TTB exemption on interest up to ₹50,000 a year
- Some banks offer a further increment above age 75
- Monthly and quarterly payout options suited to living expenses
- DICGC insurance to ₹5 lakh per depositor per bank
- Loan against the deposit without breaking it
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- Deposits at the enhanced senior citizen rate
- Cumulative and periodic payout options
- Tenures from six months to ten years
- Nomination facility
- Premature withdrawal, subject to penalty
- Loan or overdraft against the deposit
Not included
- The enhanced rate for depositors below sixty
- Tax exemption on interest above the 80TTB limit
- DICGC cover above ₹5 lakh per depositor per bank
- The full rate on premature withdrawal
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We work out what the deposit is actually for An emergency fund, a dated obligation, or long-term savings. Only the first two are really jobs for a deposit.
- 2 Rates compared across banks, small finance banks and corporates The spread is wider than most savers realise, and so is the difference in safety. We show both sides.
- 3 Tenure and payout structured around your tax position Cumulative or non-cumulative changes when the tax falls due. For some savers that matters more than the rate.
- 4 Opened, with nomination and Form 15G/H handled The two administrative steps savers skip and later regret. We complete both at opening.
- 5 Maturity tracked, and reinvestment decided deliberately Auto-renewal at whatever rate happens to prevail is a decision by default. We flag maturities so it is a decision by choice.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Submit Form 15H at the start of each financial year where eligible. Otherwise tax is deducted at source and reclaiming it takes months — a real problem for someone living on that income.
- Section 80TTB at fifty thousand rupees is five times the general exemption and applies to deposit interest, not just savings interest. Structure deposits to use it fully.
- Spread across banks. DICGC cover is per depositor per bank, and a retiree's entire capital in one institution is a concentration worth avoiding.
- Take monthly or quarterly payout if you are living on the interest. Cumulative deposits pay everything at maturity, which does not help with monthly expenses.
- Compare against the Senior Citizens Savings Scheme and post office schemes, which sometimes offer better rates with a government backing.
Documents required
- PAN card
- Identity proof — Aadhaar, passport or voter ID
- Address proof
- Recent passport-size photograph
- Existing bank account details, where opening with your own bank
- Form 15G or 15H, where applicable, to avoid tax deduction at source
- Nomination form
Frequently Asked Questions
How much extra interest do senior citizens get?
Commonly half a percentage point above the standard rate, with some banks offering a further increment for depositors above seventy-five. It applies from the age of sixty, and existing deposits do not automatically switch — a fresh deposit or renewal after turning sixty is what secures it.
What is Section 80TTB?
An exemption for senior citizens on interest income from deposits, up to fifty thousand rupees a year. That is five times the general Section 80TTA limit, and unlike 80TTA it covers fixed and recurring deposit interest rather than only savings account interest.
Should I submit Form 15H?
If your total income is below the taxable threshold, yes, at the start of each financial year. Without it the bank deducts tax at source and you reclaim it months later through your return — an avoidable cash-flow problem when you are living on that interest.
Monthly payout or cumulative?
Monthly or quarterly if you are living on the income; cumulative if you are not and want the interest compounding. Many retirees hold both — cumulative for capital they do not need and monthly payout for what funds their expenses.
Are there better alternatives for senior citizens?
The Senior Citizens Savings Scheme and certain post office schemes sometimes offer higher rates with a government backing, subject to their own limits and tenures. They are worth comparing rather than defaulting to a bank deposit.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.