Fixed deposits (FD) are often preferred investment for senior citizens because they provide higher interest rate and tax benefits. All the top lenders including State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank and others give 50 basis points interest to senior citizens over and above the general customers. Most of the banks have been reducing interest rates in tandem with the Reserve Bank of India's (RBI) decision to slash its repo rate. This has a bearing on interest of income of senior citizens. Senior citizens can invest in an FD for a tenure ranging from 7 days to 10 years. There is a facility of premature withdrawal of FD. Here is a comparison of the FD rates offered by DCB Bank, IDFC First Bank and AU Small Finance Bank.

Let's take a look at the FD interest rate offered by IDFC First Bank, DCB Bank and AU Small Finance Bank to senior citizens:

IDFC First Bank latest FD interest rate for senior citizens

IDFC First Bank gives interest ranging from 4.50% to 8.50% on deposits maturing in 1 year to 10 years to senior citizens. These rates are applicable from 21 August. Deposits maturing in one year and two years will fetch an interest rate of 8.5%.

DCB Bank latest FD interest rate for senior citizens

DCB Bank offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. DCB Bank FDs have a higher interest rate compared to their saving deposits. The bank offers interest ranging from 5.90% to 8.50% for senior citizens. The FD interest rates are highest for 3 years. For a maturity period of three years, DCB gives 8.5% interest to senior citizens.

AU Small Finance Bank latest FD interest rate for senior citizens

As compared to top lenders, small finance banks offer comparatively higher interest rates on both savings as well as FD accounts. The rate of interest on these deposits range from 6.00% to 8.60%. AU Small Finance Bank offers the highest interest rate of 8.60% on FDs maturing in 15 months 1 day to one and half year. The bank offers 10 basis point lower interest on deposits with maturity period 2 years and 3 years. For FDs maturing in 24 months 1 day to 36 months, AU Small Finance Bank gives 8.50%.

Banks latest FD rates (below 2 crore) for senior citizens

IDFC First Bank

1 year 8.50%

1 year 1 day to 2 years 8.50%

DCB Bank

36 months 8.50%

AU Small Finance Bank

15 Months 1 day to 18 Months 8.60%

24 Months 1 day to 36 Months 8.50%

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