FD interest rates: These 7 banks offer up to 7.1% interest on 3-year term deposits for senior citizens
FD interest rates: We list out the highest interest rates offered by top lenders such as HDFC Bank, ICICI Bank, SBI and Canara Bank on their 3-year fixed deposits for senior citizens
FD interest rates: Before you open a fixed deposit, it is recommended to compare the interest rates offered by different banks. Even a small difference of 50 basis points can lead to significant savings over a period of time.
For instance, if you invest ₹5 lakh in a fixed deposit over a period of 3 years, a higher interest of only 50 basis points can lead to extra savings of ₹7,500. Now if the amount of deposit increases to ₹10 lakh, it will lead to total savings of ₹15,000.
Interetingly, banks offer extra 50 basis points to depositors who are senior citizens, thereby enabling them to earn a higher income.
Here, we list out interest rates offered by different banks on three-year fixed deposits.
3-year FD interest rates offered to senior citizens
HDFC Bank: This bank offers 6.95% interest on FDs of three-year tenure to senior citizens whereas regular citizens are given 50 basis points less i.e., 6.45% per annum.
ICICI Bank: This private sector bank offers 7.1% on three-year fixed deposits whereas regular citizens are given 6.6%.
Kotak Mahindra Bank: This bank offers 6.90% interest on 3-year fixed deposits to senior citizens, whereas regular citizens are offered 50 basis points lower than this.
Federal Bank: This private bank offers 7% interest on fixed deposits to senior citizens for 3-year tenor, whereas regular citizens are offered 6.5% interest.
| Bank | Interest on 3-year deposits (%) |
|---|---|
| HDFC Bank | 6.95 |
| ICICI Bank | 7.1 |
| Kotak Mahindra | 6.90 |
| Federal Bank | 7 |
| SBI | 6.8 |
| Canara Bank | 6.75 |
| Union Bank of India | 7.1 |
(Source: Bank websites)
State lenders
State Bank of India (SBI): The largest lender of India offers 6.8% to senior citizens on 3-year fixed deposits, which is 50 basis points higher than what it pays to regular citizens.
Canara Bank: This state lender offers 6.75 percent to senior citizens when they want to deposit a sum for a three-year period. Again, it is half a percentage point higher than what it pays to regular citizens.
Union Bank of India: This state lender offers 7.1% to senior citizens on its 3-year deposits which is 50 basis points higher than regular citizens.
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