For millions of people in India, fixed deposits (FDs) serve as an important financial instrument that is used both for saving and a steady income. FDs are considered one of the safest options, especially for senior citizens, as they come with guaranteed returns and low risk. This is the reason why they are an ideal choice for short-term investments and for those who prefer certainty over high returns.
Fixed deposits follow a simple structure and fixed tenure, making them suitable for investors with limited time to track markets.
There are several banks in India that offer higher interest rates on FDs for senior citizens compared to regular ones.
Here's a look at banks offering interest rates as high as 8% on FDs for senior citizens for a term of up to three years.
Utkarsh Small Finance Bank
This bank is offering 8% interest rate on FDs of less than Rs 3 crore, with a tenure of two years (730 days) and up to three years (1,095 days) for senior citizens.
Jana Small Finance Bank
Senior citizens get 8% interest on FDs made for a tenure of 375–400 days. Interestingly, this interest rate is applied to regular FDs as well.
Suryoday Small Finance Bank
Effective Mar. 29, senior citizens get 8.25% interest rate on FDs for a tenure of 30 months, while it is 8.05% for 5 years.
Other banks offering higher interest rates to senior citizens on FDs for three years are:
State Bank of India (SBI) - 6.90% (2 years to less than 3 years)
HDFC Bank - 6.95% (2 years 11 Months 1 day up to 3 years)
ICICI Bank - 6.95% (2 years 1 day to 3 years)
Canara Bank - 6.85% (2 years and above to less than 3 years)
Axis Bank - 6.95% (2 years to less than 3 years)
Kotak Mahindra Bank - 7.20% (2 years to less than 3 years)
Punjab National Bank - 6.80% (more than 2 years to 3 years)
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