FDs for senior citizens: Check top fixed deposit schemes before December ends

FDs for senior citizens: Check top fixed deposit schemes before December ends

Senior citizens often choose FDs because they typically receive higher interest rates compared to younger investors.

Most banks, both public and private sector, typically offer senior citizens interest rates of up to 0.50 per cent that are higher than those offered to the general investors.
Business Today Desk
  • Dec 21, 2024,
  • Updated Dec 22, 2024, 12:50 PM IST

Fixed deposits (FDs) are a popular investment option for senior citizens due to their ability to provide guaranteed returns without being impacted by market fluctuations. This is particularly appealing to older individuals who are looking for a secure and stable way to grow their savings.

Another reason why senior citizens often choose FDs is because they typically receive higher interest rates compared to younger investors. Many banks across India are currently offering competitive rates above 8.5% for FDs, making them an attractive choice for those seeking reliable and consistent returns on their investments.

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Private and small finance banks in India are also offering FDs with rates exceeding 8.5% for specific time periods, further solidifying FDs as a preferred option for senior citizens seeking a safe and predictable investment avenue. 

Why senior citizens should choose FDs

Higher interests: Most banks, both public and private sector, typically offer senior citizens interest rates of up to 0.50 per cent that are higher than those offered to the general population. 

Investment Amounts: The minimum and maximum investment amounts required for a senior citizen FD may vary depending on the bank.

Tenure: The tenure for a senior citizen FD typically ranges from 7 days to a maximum of 10 years, offering flexibility based on your financial needs.

Premature Withdrawals: FDs generally allow for premature withdrawals in case of emergencies, although penalties for premature withdrawal vary among different banks.

Loan Against FD: An FD can be used as collateral to secure a loan, with the maximum loan amount depending on the principal investment.

Nomination Facility: It is essential to nominate a beneficiary when opening an FD to ensure a smooth claims process for dependents. A separate form, Form DA1, must be completed for this purpose.

Senior Citizen FD Rates

Public Sector Banks

Bank Name                     Interest Rates (% p.a.)                              Highest slab    1 year     3 year    5 year Bank of Baroda    7.80                  7.35        7.65       7.40 Bank of India        7.80                  7.30        7.25       6.75 Bank of Maha       7.90                  7.25        7.00       7.00 Canara Bank        7.75                  7.35        7.30       7.20 Central Bank of India 7.95            7.25        7.00       6.75 Indian Bank          7.75                  6.60        6.75       6.75 Indian Overseas Bank    7.80       7.40        7.00       7.00 Punjab National Bank    7.75        7.30        7.50       7.00 Punjab & Sind Bank    7.95           6.80        6.50       6.50 State Bank of India    7.75             7.30        7.25       7.50 UCO Bank                 7.55             6.75        6.80       6.70 Union Bank of India    7.90            7.25        7.00       7.00

Private Sector Banks Bank Name    Interest Rates (% p.a.)                   Highest slab    1-yr      3-yr    5-yr Axis Bank    7.75               7.20    7.60    7.75 Bandhan Bank    8.55       8.55    7.75    6.60 City Union Bank    7.50     7.00    6.75    6.50 DBS Bank    8.00              7.50    7.00    7.00 DCB Bank    8.55              7.60    8.05    7.90 Dhanlaxmi Bank    7.75    7.25    7.00    7.10 Federal Bank    7.90         7.50    7.60    7.75 HDFC Bank    7.90           7.10    7.50    7.50 ICICI Bank    7.75             7.20    7.50    7.50 IDBI Bank    7.75              7.30    7.00    7.00 IDFC First Bank    8.40    7.00    7.30    7.25 IndusInd Bank    8.49       8.25    7.75    7.75 J&K Bank    7.60              7.60    7.00    7.00 Karnataka Bank    8.00    7.85    7.00    7.00 Kotak Mahindra   7.90     7.60    7.60    6.70 Karur Vysya Bank    8.10   7.50    7.50    7.50 Nainital Bank    7.55         7.20    6.75    6.25 RBL Bank    8.50             8.00    8.00    7.60 SBM Bank    8.75           7.55    7.80    8.25 South Indian Bank    7.90    7.20    7.20    6.50 Tamilnad Mercantile Bank    8.25    7.50    7.00    7.00 YES Bank    8.25    7.75    8.00    8.00

Small Finance Banks Bank Name    Interest Rates (% p.a.)                                           Highes    1-y  3-y    5-y AU Small Finance Bank    8.50          7.75    8.00    7.75 Capital Small Finance Bank    8.10    8.00    7.65    7.60 Equitas Small Finance Bank    9.00   8.70    8.50    7.75 ESAF Small Finance Bank    8.75     6.50    7.25    6.75 Fincare Small Finance Bank    8.50   7.00    8.00    7.75 Jana Small Finance Bank    8.75       8.75    8.75    7.75 North East Small Finance    9.50        7.50    8.50    8.50 Shivalik Small Finance Bank    9.05    8.30    8.00    7.00 Suryoday Small Finance Bank    9.10    8.55    9.10   8.75 Ujjivan Small Finance Bank    8.75    8.75    7.70       7.70 Unity Small Finance Bank    9.50    8.35    8.65         8.65 Utkarsh Small Finance Bank    9.10    8.60    9.10     8.35

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