Unlock 9% Returns: Top Banks Offering High-Interest FDs for Seniors
Banks Introduce Special Fixed Deposit Schemes for Senior Citizens with Attractive Interest Rates
In a move to attract senior citizen investors, several banks have launched special fixed deposit schemes offering higher interest rates. For senior citizens, who typically prioritize stability and consistent income through interest payments post-retirement, these schemes present a compelling option. Despite the taxable nature of interest earned on fixed deposits, many senior citizens fall into lower tax brackets, resulting in minimal or no tax liability, especially when other income sources are negligible.
Small Finance Banks, in particular, are offering competitive interest rates of up to 9% on fixed deposits with tenures up to 15 months. Based on data compiled by Paisabazaar as of July 30, 2024, here are the top banks providing the most attractive rates for senior citizens on FDs up to 15 months for deposits under Rs 1 crore.
- Equitas Small Finance Bank: Leading the list, Equitas Small Finance Bank offers an impressive 9% interest rate on 444-day tenured fixed deposits, the highest among Small Finance Banks.
- Ujjivan Small Finance Bank: Offers a substantial 8.75% interest rate on 12-month tenured fixed deposits.
- Bandhan Bank: Among private sector banks, Bandhan Bank stands out with an 8.35% interest rate on 12-month tenured fixed deposits.
- IndusInd Bank: Provides an 8.25% interest rate on 12-month tenured fixed deposits.
- DBS Bank and Karur Vysya Bank: Both offer 8% interest rates on 376-day and 444-day tenured fixed deposits, respectively.
- Federal Bank and Kotak Mahindra Bank: Federal Bank offers 7.9% on 400-day tenured fixed deposits, while Kotak Mahindra Bank offers the same rate on 390-day tenured fixed deposits.
- Central Bank of India and Indian Overseas Bank: Both banks provide a 7.8% interest rate on 444-day tenured fixed deposits.
Additionally, investments in fixed deposits up to Rs 5 lakh are guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India (RBI), ensuring a safe investment option for senior citizens.
