Fixed deposits (FD) are often preferred investment options for senior citizens because they provide a higher interest rate and tax benefits. All the top lenders including the State Bank of India (SBI), ICICI Bank, HDFC Bank, and others give 50 basis points interest to senior citizens over and above the general customers. The banks have been reducing interest rates in tandem with RBI's decision to cut its repo rate. This has a bearing on interest income of senior citizens too. Here is a comparison of the FD rates offered by some of the small finance banks.
Let's take a look at the FD interest rate offered by small finance banks like Jana, Fincare, Utkarsh and Suryoday to senior citizens:
Jana Small Finance Bank offers 5.1% to 9% interest on tenures ranging from 7 days to 10 years. These FD interest rates are effective from 5th October. For a tenure of 3 years, Jana Bank gives the highest interest rate of 8% per annum.
3 years to 1095 days - 9.00%
Fincare Small Finance Bank offers FDs ranging from 7 days to 7 years. The bank offers interest in the range of 4.5% to 9.5% to senior citizens. For deposits maturing in 18 months one day to 21 months, Fincare Small Finance Bank offers an interest rate of 9%. For FDs maturing in 21 months one day to 24 months, the bank offers 9.25% interest. Fincare Small Finance Bank offers the highest rate of interest at the rate of 9.5% for deposits maturing in 24 months 1 day to 3 years.
18 months 1 day to 21 months-9%
21 months 1 day to 24 months-9.25%
24 months 1 day to 36 months-9.50%
Utkarsh Small Finance Bank offers 5.5% to 9.5% interest on FDs with tenures ranging from 7 days to 10 years. Utkarsh Small Finance Bank offers 9% interest for FDs maturing in 1 year to 455 days. The bank gives highest interest rate on FDs maturing in 456 days to less than 2 years. These term deposits will fetch 9.50% interest for senior citizens.
456 days to less than 2 years- 9.50%
1 year to 455 days-9.00%
Suryoday Small Finance Bank offers FDs ranging from 7 days to 10 years with interest varying from 4.50% to 9.25%. For FDs maturing in 1 year 6 months to 2 years and 2 years to 3 years, Suryoday Small Finance Bank gives 9% and 9.25%, respectively.
Above 1 year 6 months to 2 years: 9.00%
Above 2 years-3 years: 9.25%