FD at PSU banks vs private banks vs SFBs: Highest interest rates for senior citizens | Check list here
Fixed deposits offer senior citizens stable returns, protecting their savings from market volatility. Leading small finance banks provide competitive rates for different tenures.
For senior citizens, fixed deposits can provide stable, predictable returns on their lifetime savings, offering a shield against market volatility and uncertainty arising from global events such as the ongoing US-Iran conflict.
Prominent small finance banks (SFBs) across the country, such as Equitas Small Finance Bank, Shivalik Small Finance Bank and Jana Small Finance Bank, among others, are offering them competitive rates across different tenures.
These senior citizen fixed deposit rates can help retirees balance safety, predictability and assured returns with better income generation in a low-risk investment avenue. Keeping these essentials in mind, let's check out the highest interest rates along different tenures.
Here's a look at the highest FD rates by Private, Public and SFBs:
Senior Citizen FD Rates: Public Banks
| Bank Name | Highest Slab | 1-year tenure | 3-years tenure | 5-years tenure |
|---|---|---|---|---|
| Bank of Baroda | 7.25% | 6.75% | 6.75% | 6.90% |
| Bank of India | 7.45% | 7% | 7.45% | 6.75% |
| Bank of Maharashtra | 7.15% | 6.90% | 5.75% | 5.50% |
| Canara Bank | 7.10% | 6.75% | 6.75% | 6.75% |
| Central Bank of India | 7.20% | 6.60% | 6.50% | 6.50% |
Senior Citizen FD Rates: Private Banks
| Bank Name | Highest slab | 1-year tenure | 3-years tenure | 5-years tenure |
|---|---|---|---|---|
| Axis Bank | 7.25% | 6.75% | 7.00% | 7.25% |
| Bandhan Bank | 7.95% | 7.50% | 7.75% | 6.60% |
| CSB Bank | 7.50% | 5.15% | 5.90% | 5.90% |
| City Union Bank | 7.50% | 6.90% | 6.75% | 6.75% |
| DBS Bank | 7.35% | 6.80% | 6.90% | 6.75% |
Senior Citizen FD Rates: SFB
| Bank Name | Highest slab | 1-year tenure | 3-year tenure | 5-year tenure |
|---|---|---|---|---|
| Equitas Small Finance Bank | 8.50% | 7.60% | 7.60% | 7.50% |
| Shivalik Small Finance Bank | 8.50% | 6.50% | 8.00% | 6.75% |
| Jana Small Finance Bank | 8.30% | 7.50% | 8.30% | 7.77% |
| ESAF Small Finance Bank | 8.25% | 5.25% | 6.50% | 6.25% |
| Suryoday Small Finance Bank | 8.25% | 7.40% | 7.40% | 8.05% |
Eligibility for senior citizen fixed deposit
Individuals aged 60 years and above are eligible for higher fixed deposit interest rates than regular customers. In addition, several banks and NBFCs provide an extra rate benefit to super senior citizens, that is those aged 80 years and above.
For instance, Indian Overseas Bank, Indian Bank, Union Bank of India and RBL Bank offer an additional 0.75% interest rate over and above the regular fixed deposit rates to super senior citizens. Further, Punjab National Bank offers an additional 0.80% p.a. interest rates to super senior FD depositors, Paisa Bazaar notes
Features of Senior Citizen FDs
- Deposit amount: Minimum amount: ₹100; Maximum: No limit
- Tenure ranges from 7 days to 10 years
- Banks/NBFCs provide various interest pay-out options from which senior citizens can choose based on their requirements. These include monthly, quarterly, half-yearly pay-out and annual pay-out options. Alternatively, depositors can choose the cumulative FD option to keep the interest component invested till the FD maturity.
- The cumulative investment option would help the depositor benefit from the power of compounding, as the interest component starts generating returns on its own. Thus, the cumulative option would help the depositor generate higher returns than non-cumulative options.
- Further, banks/NBFCs allow senior citizens to withdraw amounts from fixed deposits partially or prematurely. However, most banks charge a penalty rate (up to 2%) on the applicable interest rate. Note that a premature withdrawal facility is not available in non-callable fixed deposits.
About the Author
For about a decade, Livemint—News Desk has been a credible source for authentic and timely news, and well-researched analysis on national news, business, personal finance, corporates, politics and geopolitics. We bring the latest updates on all the listed companies on BSE and NSE, startups, mutual funds, Union ministries, geopolitics, and untapped human interest stories from around the world, helping our readers to stay informed on the latest developments around the globe. Our Coverage Areas 1. Companies: Comprehensive news and analysis on listed and unlisted companies, corporate announcements, corporate chatter, C-suite, business trends, hiring alerts, layoffs, work-life balance, world's top billionaires and richest and more. 2. Personal finance: Insights into mutual funds, small savings schemes like - PPF, SSY, post office savings scheme, stock to watch, personal loans, credit cards, top bank FDs, real estate, income tax and more. 3. Politics: Comprehensive coverage of general elections, state elections and bypolls, Lok Sabha, Vidhan Sabha, Parliament, PMO, PIB, finance ministry, home ministry, among other union ministries and government departments. 4. National News: From metro cities like Delhi, Mumbai, and e to untapped stories from rural India, we cover human interest, health, education, crime and courts, and law and order, among other areas of public interest. 5. Economy: In-depth analysis of India's macro and micro-economic indicators like- GDP, inflation, forex, fiscal deficit, current account deficit, interest rate cycle, economic recovery, RBI circulars, indirect taxes, GST, Insolvency and Bankruptcy imports, exports and everything that impacts Indian economy. 6. Geopolitics: Well-rounded and deeply researched coverage on US News, Oval Office European Union, Ukraine Russia War, middle-east crisis, royal families and global leaders like - Donald Trump, Vladimir Putin, Kim Jong Un, Xi Jinping and premiers of other leading economies in the world. Meet the Team 1. Gulam Jeelani, Political Affairs Editor 2. Sugam Singhal, Senior Assistant Editor 3. Chanchal, Assistant Editor 4. Sanchari Ghosh, Chief Content Producer 5. Pratik Prashant Mukane, Chief Content Producer 6. Sayantani Biswas, Chief Content Producer 7. Ravi Hari, Deputy Chief Content Producer 8. Garvit Bhirani, Deputy Chief Content Producer 9. Akriti Anand, Senior Content Producer 10. Jocelyn Felix Fernandes, Senior Content Producer 11. Swastika Das Sharma, Content Producer 12. Mausam Jha, Content Producer 13. Riya R Alex, Trainee Content Producer
Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.