Fixed deposits are an attractive investment option, especially for senior citizens, as they provide stable returns. The low-risk investments offer a regular source of income to investors. For senior citizens, term deposits can be a quick way to earn some income on a significant portion of their retirement savings.
For people who prefer low-risk, certain returns over volatile investments, FDs offer a way to increase returns in a simple manner. They are also often of shorter duration, meaning investors can move their money to other avenues if they want better returns.
Several lenders also offer FDs at higher interest rates for senior citizens. They may be able to get up to 0.5% extra interest compared to FDs for other customers. Many banks can offer up to 8.05% per annum on term deposits for senior citizens if they meet certain conditions.
These interest rates are valid on FDs which are less than Rs 3 crore.
State Bank of India
SBI offers an annual interest rate of 6.8% on FDs in the range of 3 years to less than 5 years. Term deposits lasting from 5 years to 10 years can give senior citizens returns of 7.05% annually, which includes an additional premium of 50 basis points under the SBI We-care deposit scheme.
HDFC
HDFC Bank gives an interest of 6.9% to senior citizens on a FD with a term between 4 years 7 months and 1 day to less than or equal to 5 years. Term deposits with a tenure greater than 5 years have an interest rate of 6.6% per annum.
ICICI
Senior citizens can avail up to 7.1% interest annually on FDs between 3 years and 1 day to 5 years. For terms deposits over 5 years, the rate of return is 7%.
Punjab National Bank
FDs with a tenure of 1205 days to 5 years offer returns of 6.85%. For super senior citizens, the interest rate is 7.15 on the same term deposit.
Which Bank Gives Over 8% On FDs To Senior Citizens?
Small finance banks like Suryoday Small Finance Bank offer an interest rate of 8.05% on FDs with a 5-year tenure.
With several banks offering attractive interest rates to senior citizens, FDs have emerged as a popular savings option. Customers should look at the tenure and interest rate that best suits their investment needs before putting their money in fixed deposit.
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