A reliable source of income and capital security, fixed deposits (FDs) are a wise financial choice, particularly for older investors who need consistent returns. Because of its safety, consistent returns, and the greatest fixed deposit rates for older adults, this product is quite popular. With its characteristics, senior citizen FDs are a product that appeals to people who want a steady income after retirement
Senior citizens are eligible for preferential fixed deposit rates, often higher than those offered to general depositors. Seniors can increase the growth of their savings at a higher rate with senior citizen FD rates without having to take on more risks. Their savings will increase more quickly thanks to the increased interest rate, helping them to beat inflation and preserve their purchasing power after retirement
Also read: FD interest rate up to 9.25%: These 5 banks have revised fixed deposit rates in April
Here are banks offering best rate for senior citizens fixed deposit interest rates, according to the Paisabazaar data.
| Bank Name | Interest Rates (%) (p.a.) | Additional rates offered to Super Senior Citizen* (over and above to senior citizen rates; %) | ||||
| Highest slab | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | |||
| % | Tenure | |||||
| SMALL FINANCE BANKS | ||||||
| AU Small Finance Bank | 8.5 | 18 months | 7.25 | 8 | 7.75 | --- |
| Equitas Small Finance Bank | 9 | 444 days | 8.7 | 8.5 | 7.75 | --- |
| ESAF Small Finance Bank | 8.75 | 2 years to less than 3 years | 6.5 | 7.25 | 6.75 | --- |
| Fincare Small Finance Bank | 8.5 | 18 months | 7.25 | 8 | 7.75 | --- |
| Jana Small Finance Bank | 9 | 365 days | 9 | 7.75 | 7.75 | --- |
| NorthEast Small Finance Bank | 9.25 | 555 days; 1111 days | 8.5 | 8.75 | 7 | --- |
| Suryoday Small Finance Bank | 9.25 | 5 years | 7.35 | 9.1 | 9.25 | --- |
| Ujjivan Small Finance Bank | 9 | 15 months | 8.75 | 7.7 | 7.7 | --- |
| Unity Small Finance Bank | 9.5 | 1001 days | 8.35 | 8.65 | 8.65 | --- |
| Utkarsh Small Finance Bank | 9.1 | 2 years to 3 years | 8.6 | 9.1 | 8.1 | --- |
| PRIVATE SECTOR BANKS | ||||||
| Axis Bank | 7.85 | 17 months to less than 18 months | 7.2 | 7.6 | 7.75 | --- |
| Bandhan Bank | 8.35 | 1 year | 8.35 | 7.75 | 6.6 | --- |
| City Union Bank | 7.5 | 400 days | 7 | 6.75 | 6.5 | --- |
| CSB Bank | 7.75 | 401 days | 5.5 | 6.25 | 6.25 | --- |
| DBS Bank | 8 | 376 days to 540 days | 7.5 | 7 | 7 | --- |
| DCB Bank | 8.6 | 25 months to 26 months | 7.65 | 8.1 | 7.9 | --- |
| Federal Bank | 8 | 500 days | 7.3 | 7.5 | 7.25 | --- |
| HDFC Bank | 7.75 | 5 years 1 day to 10 years & 18 months to less than 21 months | 7.1 | 7.5 | 7.5 | --- |
| ICICI Bank | 7.75 | 15 months to 2 years | 7.2 | 7.5 | 7.5 | --- |
| IDFC First Bank | 8.5 | 500 days | 7 | 7.75 | 7.5 | --- |
| IndusInd Bank | 8.25 | 1 year to 2 years | 8.25 | 7.75 | 7.75 | --- |
| Jammu & Kashmir Bank | 7.55 | 1 year to less than 2 years | 7.55 | 7 | 7 | --- |
| Karur Vysya Bank | 8 | 444 days | 7.4 | 7.4 | 7.4 | --- |
| Kotak Mahindra Bank | 7.9 | 390 days to less than 23 months | 7.6 | 7.6 | 6.7 | --- |
| Nainital Bank | 7.55 | 400 days - Naini Plus 2023 Deposit Scheme | 7.2 | 6.75 | 6.25 | 0.10% on all tenures |
| RBL Bank | 8.6 | 18 months to 2 years | 8 | 8 | 7.6 | 0.25% on all tenures |
| SBM Bank India | 9 | Above 3 years 2 days to less than 5 years | 7.6 | 8.15 | 7.55 | --- |
| South Indian Bank | 7.9 | 400 Days | 7.2 | 7.2 | 6.5 | --- |
| Tamilnad Mercantile Bank | 8.25 | 444 days (TMB 444 – Special Deposit) | 7.5 | 7 | 7 | --- |
| YES Bank | 8.25 | 18 month to less than 2 years | 7.75 | 8 | 8 | --- |
| PUBLIC SECTOR BANKS | ||||||
| Bank of Baroda | 7.75 | Above 2 years to 3 years | 7.35 | 7.75 | 7.15 | --- |
| Bank of India | 7.75 | 2 years | 7.3 | 7.25 | 6.75 | 0.15% on tenures of 180 days to 10 years |
| Bank of Maharashtra | 7 | 1 year | 7 | 6.25 | 6.25 | --- |
| Canara Bank | 7.75 | 444 days | 7.35 | 7.3 | 7.2 | 0.10% on 444 days |
| Central Bank of India | 7.75 | 555 days | 7.25 | 7 | 6.75 | --- |
| Indian Bank | 7.75 | 400 days - IND SUPER | 6.6 | 6.75 | 6.75 | 0.25% on all tenures |
| Indian Overseas Bank | 7.8 | 444 days | 7.4 | 7 | 7 | 0.25% on all tenures |
| Punjab National Bank | 7.75 | 400 days | 7.25 | 7.5 | 7 | 0.30% for tenures up to 5 years |
| Punjab & Sind Bank | 7.75 | 444 days | 6.7 | 6.5 | 6.5 | 0.15% on tenure of 444 days |
| State Bank of India | 7.6 | 400 days - Amrit Kalash | 7.3 | 7.25 | 7.5 | --- |
| Union Bank of India | 7.75 | 399 days | 7.25 | 7 | 7 | 0.25% on all tenures |
| FOREIGN BANKS | ||||||
| Deutsche Bank | 8 | Above 1 year to 3 years | 7 | 8 | 7.5 | --- |
| HSBC Bank | 7.75 | 732 days to less than 3 years | 4.5 | 7.5 | 6.5 | --- |
| Standard Chartered Bank | 8 | 2 years to less than 3 years | 7.65 | 7.6 | 7.25 | --- |
| Note: *Depositors aged 80 years and above | ||||||
| Source: Paisabazaar.com | ||||||
| Interest rates as of 9 April 2024 | ||||||
Benefits of FD Laddering
The potential risk of putting all of the money in one FD at a fixed rate is reduced when investors use FD laddering to distribute their investments over a number of tenures and FD rates. You may reserve many FD accounts for terms varying from seven days to ten years, all while protecting your money.
Also read: SBI vs HDFC Bank vs IDBI Bank: Check last date to invest in special FDs with higher interest rates
Compared to investing in a single long-term FD, you can earn greater returns by spreading your money over several schemes with varying tenures and FD rates. Furthermore, you have the option to reinvest both the principle amount and interest income upon maturity to take advantage of the compounding effect and earn even larger profits. Investing in many FDs with different maturities might let investors keep more cash on hand. In this manner, one can benefit from a maturing FD rather than having to liquidate a continuing one in the event of a financial need.
