Festive season investment: FD schemes senior citizens can consider for good returns
Bank fixed deposits are a popular choice for individuals who are averse to risk when it comes to saving. It should be noted that many banks provide senior citizens with a higher interest rate on their fixed deposits than other investors.
- Oct 20, 2024,
- Updated Oct 20, 2024 2:34 PM IST
Fixed deposits, often referred to as FDs, are a popular investment choice among many individuals in India, particularly senior citizens, due to their trustworthiness. Bank fixed deposits are a favoured savings avenue for risk-averse individuals. It is important to mention that most banks offer senior citizens a higher interest rate on their fixed deposits compared to other investors. Typically, senior citizens can benefit from an extra interest rate of 0.50 percent in addition to the standard rates provided by banks for fixed deposits with varying tenures. The interest earned from these deposits is distributed to investors at regular intervals, such as monthly, quarterly, semi-annually, or annually.
Presently in India, both public and private banks, along with Non-Banking Financial Companies (NBFCs), are providing appealing fixed deposit (FD) interest rates surpassing 7%, presenting an appealing choice for individuals seeking secure investments with assured returns. If you are contemplating entrusting your funds with these financial institutions, the following information serves as a detailed resource for you.
Here's a list of banks and the interest rates they are offering
Small Finance Banks
| Bank Name | Best Interest Rates/Period | Tenure | ||
| 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | ||
| AU Small Finance Bank | 8.5%/18 months | 7.75 | 8.00 | 7.75 |
| Equitas Small Finance Bank | 8.75%/444 days | 8.60 | 8.50 | 7.75 |
| ESAF Small Finance Bank | 8.75%/2 years to less than 3 years | 6.50 | 7.25 | 6.75 |
| Jana Small Finance Bank | 8.75%/ 365 days to 1095 days | 8.75 | 8.75 | 7.75 |
| NorthEast Small Finance Bank | 9.50%/ 546 days to 1111 days | 7.50 | 9.50 | 6.75 |
| Suryoday Small Finance Bank | 9.10%/Above 2 years to 3 years | 7.35 | 9.10 | 8.75 |
| Ujjivan Small Finance Bank | 8.75%/12 months | 8.75 | 7.70 | 7.70 |
| Unity Small Finance Bank | 9.50%/1001 days | 8.35 | 8.65 | 8.65 |
| Utkarsh Small Finance Bank | 9.10%/ 2 years to 3 years; 1500 days | 8.60 | 9.10 | 8.35 |
Private Banks
| Bank name | Best Interest Rates/Period | Tenure | ||
| 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | ||
| Axis Bank | 7.75%/15 months to less than 2 years; 5 years to 10 years | 7.20 | 7.60 | 7.75 |
| Bandhan Bank | 8.55%/1 year | 8.55 | 7.75 | 6.60 |
| City Union Bank | 8.00 %/333 days | 7.25 | 6.75 | 6.50 |
| CSB Bank | 7.75%/401 days | 5.50 | 6.25 | 6.25 |
| DBS Bank | 8.00%/376 days to 540 days | 7.50 | 7.00 | 7.00 |
| Federal Bank | 7.90% /50 months; 777 days | 7.30 | 7.50 | 7.25 |
| HDFC Bank | 7.90%/4 Year 7 Months (55 months) | 7.10 | 7.50 | 7.50 |
| ICICI Bank | 7.80%/15 months to less than 18 months | 7.20 | 7.50 | 7.50 |
| IDFC First Bank | 8.25%/400-500 days | 7.00 | 7.30 | 7.25 |
| IndusInd Bank | 8.25%/1 year to 2 years | 8.25 | 7.75 | 7.75 |
| Karur Vysya Bank | 8.10%? 760 days – Special Deposit | 7.40 | 7.40 | 7.40 |
| Karnataka Bank | 8.00%/375 days | 7.85 | 7.00 | 7.00 |
| Kotak Mahindra Bank | 7.90%/390 days to less than 23 months | 7.60 | 7.60 | 6.70 |
| RBL Bank | 8.60%/500 days | 8.00 | 8.00 | 7.60 |
| South Indian Bank | 7.75%-400 days | 7.20 | 7.20 | 6.50 |
| YES Bank | 8.50%/18 months | 7.75 | 8.00 | 8.00 |
Public sector banks
| Bank name | Best Interest Rates/Period | Tenure | ||
| 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) |
| Bank of Baroda | 7.80%/400 days – Bob Utsav | 7.35 | 7.65 | 7.40 |
| Bank of India | 7.80%/400 days | 7.30 | 7.25 | 6.75 |
| Bank of Maharashtra | 7.75%/777 days | 7.25 | 7.00 | 7.00 |
| Canara Bank | 7.75%/444 days | 7.35 | 7.30 | 7.20 |
| Central Bank of India | 7.95%/444 days | 7.35 | 7.25 | 7.00 |
| Indian Bank | 7.80%/1 year to 375 days | 6.60 | 6.75 | 6.75 |
| Indian Overseas Bank | 7.80%/444 days | 7.60 | 7.00 | 7.00 |
| Punjab National Bank | 7.75%/400 days | 7.30 | 7.50 | 7.00 |
| Punjab & Sind Bank | 7.80%/666 days | 6.80 | 6.50 | 6.50 |
| State Bank of India | 7.75%/444 days – Amrit Vrishti | 7.30 | 7.25 | 7.50 |
| Union Bank of India | 7.90%-333 days | 7.30 | 7.20 | 7.00 |
Disclaimer: Business Today provides market, mutual fund, and investment-related news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Fixed deposits, often referred to as FDs, are a popular investment choice among many individuals in India, particularly senior citizens, due to their trustworthiness. Bank fixed deposits are a favoured savings avenue for risk-averse individuals. It is important to mention that most banks offer senior citizens a higher interest rate on their fixed deposits compared to other investors. Typically, senior citizens can benefit from an extra interest rate of 0.50 percent in addition to the standard rates provided by banks for fixed deposits with varying tenures. The interest earned from these deposits is distributed to investors at regular intervals, such as monthly, quarterly, semi-annually, or annually.
Presently in India, both public and private banks, along with Non-Banking Financial Companies (NBFCs), are providing appealing fixed deposit (FD) interest rates surpassing 7%, presenting an appealing choice for individuals seeking secure investments with assured returns. If you are contemplating entrusting your funds with these financial institutions, the following information serves as a detailed resource for you.
Here's a list of banks and the interest rates they are offering
Small Finance Banks
| Bank Name | Best Interest Rates/Period | Tenure | ||
| 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | ||
| AU Small Finance Bank | 8.5%/18 months | 7.75 | 8.00 | 7.75 |
| Equitas Small Finance Bank | 8.75%/444 days | 8.60 | 8.50 | 7.75 |
| ESAF Small Finance Bank | 8.75%/2 years to less than 3 years | 6.50 | 7.25 | 6.75 |
| Jana Small Finance Bank | 8.75%/ 365 days to 1095 days | 8.75 | 8.75 | 7.75 |
| NorthEast Small Finance Bank | 9.50%/ 546 days to 1111 days | 7.50 | 9.50 | 6.75 |
| Suryoday Small Finance Bank | 9.10%/Above 2 years to 3 years | 7.35 | 9.10 | 8.75 |
| Ujjivan Small Finance Bank | 8.75%/12 months | 8.75 | 7.70 | 7.70 |
| Unity Small Finance Bank | 9.50%/1001 days | 8.35 | 8.65 | 8.65 |
| Utkarsh Small Finance Bank | 9.10%/ 2 years to 3 years; 1500 days | 8.60 | 9.10 | 8.35 |
Private Banks
| Bank name | Best Interest Rates/Period | Tenure | ||
| 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | ||
| Axis Bank | 7.75%/15 months to less than 2 years; 5 years to 10 years | 7.20 | 7.60 | 7.75 |
| Bandhan Bank | 8.55%/1 year | 8.55 | 7.75 | 6.60 |
| City Union Bank | 8.00 %/333 days | 7.25 | 6.75 | 6.50 |
| CSB Bank | 7.75%/401 days | 5.50 | 6.25 | 6.25 |
| DBS Bank | 8.00%/376 days to 540 days | 7.50 | 7.00 | 7.00 |
| Federal Bank | 7.90% /50 months; 777 days | 7.30 | 7.50 | 7.25 |
| HDFC Bank | 7.90%/4 Year 7 Months (55 months) | 7.10 | 7.50 | 7.50 |
| ICICI Bank | 7.80%/15 months to less than 18 months | 7.20 | 7.50 | 7.50 |
| IDFC First Bank | 8.25%/400-500 days | 7.00 | 7.30 | 7.25 |
| IndusInd Bank | 8.25%/1 year to 2 years | 8.25 | 7.75 | 7.75 |
| Karur Vysya Bank | 8.10%? 760 days – Special Deposit | 7.40 | 7.40 | 7.40 |
| Karnataka Bank | 8.00%/375 days | 7.85 | 7.00 | 7.00 |
| Kotak Mahindra Bank | 7.90%/390 days to less than 23 months | 7.60 | 7.60 | 6.70 |
| RBL Bank | 8.60%/500 days | 8.00 | 8.00 | 7.60 |
| South Indian Bank | 7.75%-400 days | 7.20 | 7.20 | 6.50 |
| YES Bank | 8.50%/18 months | 7.75 | 8.00 | 8.00 |
Public sector banks
| Bank name | Best Interest Rates/Period | Tenure | ||
| 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) |
| Bank of Baroda | 7.80%/400 days – Bob Utsav | 7.35 | 7.65 | 7.40 |
| Bank of India | 7.80%/400 days | 7.30 | 7.25 | 6.75 |
| Bank of Maharashtra | 7.75%/777 days | 7.25 | 7.00 | 7.00 |
| Canara Bank | 7.75%/444 days | 7.35 | 7.30 | 7.20 |
| Central Bank of India | 7.95%/444 days | 7.35 | 7.25 | 7.00 |
| Indian Bank | 7.80%/1 year to 375 days | 6.60 | 6.75 | 6.75 |
| Indian Overseas Bank | 7.80%/444 days | 7.60 | 7.00 | 7.00 |
| Punjab National Bank | 7.75%/400 days | 7.30 | 7.50 | 7.00 |
| Punjab & Sind Bank | 7.80%/666 days | 6.80 | 6.50 | 6.50 |
| State Bank of India | 7.75%/444 days – Amrit Vrishti | 7.30 | 7.25 | 7.50 |
| Union Bank of India | 7.90%-333 days | 7.30 | 7.20 | 7.00 |
Disclaimer: Business Today provides market, mutual fund, and investment-related news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.