FD Interest Rates: Which bank has the best offer for senior citizens?

FD Interest Rates: Fixed deposits (FDs) are considered one of the safest investment options in India, especially for senior citizens. FDs offer the benefits of guaranteed returns, capital protection, and stable income. This is why FDs are a preferred investment option for retired individuals.

Benefits of Fixed Deposit for Senior Citizens

The main attraction of FDs for senior citizens is its stability and safe returns. FDs are risk-free compared to market-based investments, making them a reliable means of stable income after retirement. Banks and non-banking financial companies (NBFCs) offer senior citizens interest rates 0.50% higher than regular rates on FDs.

Current interest rates:

• The tenure of FD ranges from 7 days to 10 years.
• At present, banks and NBFCs are offering annual interest rates ranging from 2.50% to 9.10%.
• Small finance banks and NBFCs are offering attractive interest rates of up to 9%, while large private banks are offering FDs at rates up to 7%.

FD Interest Rates for Senior Citizens in Public Sector Banks

Public sector banks offer higher interest rates to senior citizens, which are higher than the general customers.

• Bank of Baroda – 7.80%
• Bank of India – 7.80%
• Canara Bank – 7.75%
• Central Bank of India – 7.95%
• SBI (State Bank of India) – 7.75%
• Union Bank of India – 7.90%

FD Interest Rates for Senior Citizens in Private Sector Banks

Interest rates for senior citizens in private banks may be higher than in public banks, offering them better returns.

• Axis Bank – 7.75%
• Bandhan Bank – 8.55%
• DBS Bank – 8.00%
• HDFC Bank – 7.90%
• ICICI Bank – 7.75%
• IDFC First Bank – 8.40%
• Yes Bank – 8.25%

FD Interest Rates for Senior Citizens in Small Finance Banks

Small finance banks are offering the highest interest rates to senior citizens, which can go as high as 9%.

• AU Small Finance Bank – 8.50%
• Jana Small Finance Bank – 8.75%
• North East Small Finance Bank – 9.00%
• Unity Small Finance Bank – 9.10%
• Utkarsh Small Finance Bank – 9.10%

Special benefits for senior citizens

Senior citizens enjoy several special benefits when investing in FDs:

1. Flexible interest payment options: Senior citizens can choose to receive interest on a monthly, quarterly, half-yearly or yearly basis.
2. Liquidity facility: Senior citizens can make partial or full withdrawal of FD whenever required, which helps them in emergencies.
3. Auto-renewal option: Customers can renew the FD automatically when it matures.
4. Protection up to Rs 5 lakh: Under the Deposit Insurance and Credit Guarantee Corporation (DICGC), senior citizens get insurance protection of up to Rs 5 lakh on their FDs.

Fixed deposits for senior citizens are not only a safe investment option but also a means of stable and fixed income. Small finance banks and NBFCs are offering higher interest rates to senior citizens, which can make their returns higher. Senior citizens investing in FDs also get special features like flexible payment options and insurance protection, making it an attractive option for them.