These 2 small finance banks are offering over 9% interest rate to senior citizens on FDs

Banks began raising the interest rates on fixed deposits (FDs) in 2022. Since then, many banks have increased their FD interest rates, which are currently between 5 and 8 per cent. Senior citizens can also get higher interest rates from banks. FDs are the best investment option, especially for people looking for benefits like high liquidity, premature withdrawal options, nomination facilities, loan/overdraft options, etc.

Even though most large banks have raised their fixed deposit interest rates recently, they are still below those offered by small finance banks.

Here are two small finance banks that are DICGC insured and that are promising senior citizens over 9 per cent returns on fixed deposits.

Suryoday Small Finance Bank

At Suryoday Small Finance Bank, the interest rate on fixed deposits has increased by 50 basis points to a remarkable 226 basis points. The new interest rates went into effect on December 6. Senior citizens can earn up to 9.26 per cent more on their FDs than the general public can, while the latter can only do so for investments under Rs 2 crore. The bank has also launched a limited-time offer for a 5-year deposit with a 15-day term. The bank is offering non-senior residents a rate of 9.01 per cent under this short-term fixed deposit programme, and senior citizens a rate of 9.26 per cent.

Unity Small Finance Bank

The bank offers senior citizens FD interest rates ranging from 4.5 per cent to 9 per cent. According to the bank website, it currently offers senior citizens an interest rate of 9 per cent annually on fixed deposits invested for terms of 181 and 501 days, respectively, while retail investors receive 8.50 per cent for the same terms.