This bank is giving the highest interest on FD to senior citizens, these banks have left behind even the top banks of the country. Now people are investing in these banks by breaking FDs from SBI, HDFC, ICICI banks.
Finance Minister Nirmala Sitharaman announced attractive interest rates and schemes for senior citizens in the Budget 2023, so many banks either revised their interest rates on FDs or introduced new schemes specifically for the senior group. Launched new FD schemes for Most banks have revised their FD interest rates as the Reserve Bank of India (RBI) increased its repo rate to 6.5 per cent earlier this month. Whenever the RBI increases the repo rate, the interest rates on fixed deposits also go up, making it an attractive option for savings.
From State Bank of India (SBI), HDFC Bank Limited, Punjab National Bank (PNB), ICICI Bank, Kotak Mahindra Bank to Axis Bank, all major banks have revised their interest rates. While nationalized banks offer returns of up to 7.5-8 per cent on fixed deposits, small finance banks (SFBs) offer returns of up to 9.5 per cent on fixed deposits.
Apart from the additional 0.50 per cent interest rate offered by most banks, senior citizens are given a number of benefits under FD schemes. Anyone above the age of 60 years (including very senior citizens above the age of 80 years) can avail of this interest rate.
Although bank FD interest is taxable, senior citizens get an added benefit which ensures that the tax liability is minimal or nil.
Best FD rate for senior citizens
Unity Small Finance Bank
Best Slab: 9.5%
For senior citizens, Unity Small Finance Bank is offering 9.5 per cent interest rate for the 1,001 days plan.
On deposits of 181-201 days and 501 days, Unity Bank is offering 9.25 per cent interest to senior citizens from February 15, 2023.
Suryoday Small Finance Bank
Best Slab: 8.51%
Suryoday Small Finance Bank is offering an interest rate of 8.76 per cent interest rate for senior citizens for a tenure of 999 days.
Besides this, the small finance bank is offering an interest rate of 8.51 per cent for plans from 2 years to 999 days.
Jana Small Finance Bank
Best Slab: 8.80%
Jana Small Finance Bank, which is India’s largest micro finance institution, offers various Regular Fixed Deposit and FD Plus schemes with tenures ranging from 7 days to 10 years.
The bank offers an additional interest of 0.70 per cent to senior citizen investors on all term deposits. The best interest rate for senior citizens is 8.80 per cent for a period of 2 years to 3 years.
Bandhan Bank
Best Slab: 8.50%
Bandhan Bank offers fixed deposits or fixed deposits (FDs) to senior citizens with interest rates in the range of 3.00 per cent to 8.50 per cent for domestic investors. This rate is 0.75 per cent higher for senior citizens as compared to general investors.
Senior citizens can opt for the special FD scheme for 600 days, which will fetch them an interest rate of 8.50 per cent.
IDBI Bank
Best Rate: 7.50%
Senior citizens can earn an additional interest rate of up to 0.75 per cent under the IDBI Naman Senior Citizen Fixed Deposit. The minimum deposit amount under this scheme is Rs 10,000. The maximum limit will go up to Rs 2 crore. Senior citizens can earn an interest rate of 7.50 per cent for fixed deposits maturing between one year and two years (except 444 days and 700 days).
For FDs maturing between two years and three years, the interest rate for senior citizens will be 7.25 per cent. The scheme is valid till March 31, 2022.
