World Senior Citizens Day, observed on August 21 each year, brings attention to the challenges faced by those over 60 and explores ways to improve their quality of life. This year, let’s focus on where seniors can safely park their savings to get better returns and easy access to their money.
According to PaisaBazaar, the top five banks offering the highest interest rates for senior citizen fixed deposits in August from private and public sector banks are:
Private Sector Banks
RBL Bank: Offers the highest rate of 8.6% for a tenure of 500 days.
IndusInd Bank: Provides a peak rate of 8.25% for tenures ranging from 1 to 2 years.
SBM Bank India: Offers an interest rate of 8.75% for a tenure of 3 years and 2 days.
DCB Bank: Provides a maximum rate of 8.55% for tenures of 19 to 20 months.
YES Bank: Offers a top interest rate of 8.5% for a tenure of 18 months.
Public Sector Banks
Bank of India: Offers the highest rate of 8.5% for a tenure of 666 days.
Union Bank of India: Provides a peak rate of 7.9% for a tenure of 333 days.
Central Bank of India: Offers a maximum interest rate of 7.8% for a tenure of 444 days.
Punjab & Sind Bank: Offers an interest rate of 7.8% for a tenure of 666 days.
Indian Overseas Bank: Provides a top rate of 7.8% for a tenure of 444 days.
The top five small finance banks offering the highest interest rates for senior citizen fixed deposits in August are:
Unity Small Finance Bank: Offers the highest interest rate of 9.5% for a tenure of 1001 days.
NorthEast Small Finance Bank: Also provides a top rate of 9.5% for tenures ranging from 546 to 1111 days.
Suryoday Small Finance Bank: Offers a peak rate of 9.1% for deposits with tenures above 2 years to 3 years.
Utkarsh Small Finance Bank: Provides a maximum interest rate of 9.1% for tenures between 2 years to 3 years and 1500 days.
Equitas Small Finance Bank: Offers an interest rate of 9% for a tenure of 444 days.
Bank of India
Bank of India recently revised its Fixed Deposit interest rates for senior citizens. For their 666-day Fixed Deposit, Super Senior Citizens now get an interest rate of 8.10% per annum, while Senior Citizens receive 7.80% per annum.
“For those with deposits ranging from Rs 3 crore to less than Rs 10 crore, the bank offers 6.50% interest for a tenure of 180 to 210 days, and 6.75% for 211 days to just under a year. If you have a deposit of Rs 2 crore or less, you can earn 7% interest for a 1-year term, with Senior Citizens benefiting from a higher rate of 7.50% and Super Senior Citizens getting 7.65%”, according to the Bank of India website.
These rates are applicable to domestic, NRO, and NRE deposits.
RBL Bank
RBL Bank offers Fixed Deposits specifically designed for Senior and Super Senior Citizens. For Senior Citizens (60 to less than 80 years old), there’s an interest rate of up to 8.60% per annum for a 500-day term on deposits below Rs 3 crore. This FD is a dependable source of fixed income, with the freedom to choose the tenor, payout frequency, and investment amount.
For Super Senior Citizens (80 years and above), RBL Bank provides an even higher interest rate of 8.85% per annum for a 500-day term on deposits below Rs 3 crore.
DCB Bank
DCB Bank’s Fixed Deposit for senior citizens offers interest rates ranging from 4.25% to 8.55% per annum, depending on the tenure. The bank provides a flexible tenure range from 7 days to 10 years, along with an overdraft facility of up to 80% of the FD’s value, allowing access to funds without breaking the deposit.
Seniors can also choose how they receive interest—monthly, quarterly, half-yearly, or annually. Plus, DCB Bank offers value-added services like a complimentary cheque book and doorstep banking, making it a convenient choice for older adults. You can access these services via the DCB Bank Mobile Banking App or their Personal Internet Banking platform.
One standout option from DCB Bank is the Health Plus Fixed Deposit. This scheme includes free medical benefits and emergency services. For Fixed Deposits of Rs 25 lakh and above, customers receive up to 10 doctor visits, pharmacy expense claims up to Rs 3,000 and unlimited emergency ambulance services.
Additionally, DCB offers a Tax Saver Fixed Deposit, which provides tax benefits under Section 80C while ensuring guaranteed returns.
SBI’s “Amrit Vrishti” scheme
The State Bank of India (SBI) launched the “Amrit Vrishti” scheme in July. This term deposit scheme offers a 7.25% annual interest rate on 444-day deposits, with senior citizens receiving an extra 0.50% interest.
For senior citizens, finding the right place to park savings is the key to ensuring financial stability in later years.
Which banks offer the best FD rates?
Small finance banks like Unity Bank, Suryoday Bank, Equitas Bank, and others currently offer FD interest rates of 7.5% per annum or higher for a 10-year tenure. Some private sector banks, such as RBL Bank, IndusInd Bank, and Yes Bank, even offer rates above 8% per annum to senior citizens.
First Published: Aug 21 2024 | 1:09 PM IST
