FD Interest Rates: These banks are giving up to 8.50% interest on FD to the elderly, see full list

 

Senior Citizens FD Interest Rates: Besides being a safe investment, fixed deposits (FDs) are also popular for their returns. Many banks are offering impressive FD rates, especially for senior citizens, and small finance banks are leading the way. Most of them offer interest rates of over 8% on FDs of various tenures. One bank is even offering 8.50%.

A Great Option for Senior Citizens

Fixed deposits remain the most popular investment option among senior citizens because they offer stable, predictable returns and avoid the risks and fluctuations of market-linked investments. Because they guarantee a fixed interest income, they are considered a safe investment. Most banks offer additional interest benefits to senior citizens and super senior citizens compared to the interest rates offered to their general customers. However, these benefits may vary depending on the tenure of the deposit.

These banks topped the list in terms of returns in August.

Small finance banks led the way in August in terms of interest rates on FD schemes (Best FD Interest Rates in August). Among them, Shivalik Small Finance Bank (Shivalik Small Finance Bank FD Rates) is offering interest rates up to 8.50% for select tenures. While larger banks like SBI, HDFC Bank, and ICICI Bank are also offering strong interest rates on FDs, they are much lower than those of small finance banks.

These small banks offer only benefits.

Shivalik Small Finance Bank offers 8.00% interest on fixed deposits ranging from 23 months 1 day to 27 months, while senior citizens are offering 8.50% interest at the regular rate. Jana Small Finance Bank offers 8.30% interest on 2-3 year fixed deposits, Unity Small Finance Bank offers 8.30% interest on 501 day fixed deposits, Suryoday Small Finance Bank offers 8.25% interest on 30 month fixed deposits, Utkarsh Small Finance Bank offers 8.25% interest on 666 day fixed deposits, and Equitas Small Finance Bank offers 8.24% interest on 3 year 1 day fixed deposits.

These are the FD rates available at major banks.

Small finance banks offer FD interest rates at major banks, while SBI offers 6.90% interest to senior citizens on 2-3 year FDs, HDFC Bank offers 7.00% interest on fixed deposits of approximately 3 years, and ICICI Bank offers up to 7.10% interest to senior customers on FDs ranging from 3 years and 1 day to 5 years.

Are Small Finance Bank FDs safe?

Small Finance Banks are regulated by the Reserve Bank of India (RBI). The insurance infrastructure implemented by the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides coverage up to ₹5 lakh per depositor per bank, subject to the scheme’s rules.

What should you look for before investing?

It should be noted that while various banks are offering high FD interest rates to senior citizens, senior citizens should not select an FD scheme solely based on the high interest rate before investing. They should also consider the bank’s financial position, term, premature withdrawal conditions, and applicable deposit insurance limits, and should invest only after thorough due diligence.