Highest interest rates on FD:Bank Fixed Deposit is considered to be one of the safest investment options. It also gives good returns. Due to low risk, people prefer FD option for investment. Even today a large number of people make FD. Especially senior citizens like to invest in FD.Banks also pay senior citizens more interest on FDs than the general public. Many small banks are paying senior citizens up to 9.5% interest on 3-year FDs. Senior citizens who want to invest safely and get good returns can earn good money by keeping money in bank FDs.
If you are 60 years or above and want to earn good money by investing your money in FD, then here is a list of private, government and small finance banks for you. The list also includes details of the interest rate and tenure on FD. By comparing the senior citizen FD rates of these banks, you can keep your money in the trusted bank offering the highest returns.
| Senior Citizen FD Rates | |||||
| Name of the Bank | interest rate per annum | ||||
| The highest returns | Interest on 1 Year FD (%) | Interest on 3 Year FD (%) | Interest on 5 Year FD (%) | ||
| Interest Rate (%) | Tenure | ||||
| Small Finance Bank | |||||
| AU Small Finance Bank | 8.5 | 18 months | 7.75 | 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 |
| Jana Small Finance Bank | 8.75 | 365 days to 1095 days | 8.75 | 8.75 | 7.75 |
| Northeast Small Finance Bank | 9.5 | 546 days to 1111 days | 7.5 | 9.5 | 6.75 |
| Suryoday Small Finance Bank | 9.1 | Above 2 years to 3 years | 7.35 | 9.1 | 8.75 |
| Ujjivan Small Finance Bank | 8.75 | 12 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; 1500 days | 8.6 | 9.1 | 8.35 |
| Private Bank | |||||
| Axis Bank | 7.75 | 5 years to 10 years | 7.2 | 7.6 | 7.75 |
| Bandhan Bank | 8.5 | 1 year 9 months | 7.75 | 7.75 | 6.6 |
| City Union Bank | 7.75 | 400 days | 7.25 | 6.75 | 6.5 |
| CSB Bank | 7.75 | 401 days | 5.5 | 6.25 | 6.25 |
| indian bank | 8 | 376 days to 540 days | 7.5 | 7 | 7 |
| DCB Bank | 8.55 | 19 months to 20 months | 7.6 | 8.05 | 7.9 |
| Federal Bank | 7.9 | 50 months ; 777 days | 7.3 | 7.5 | 7.25 |
| HDFC Bank | 7.9 | 4 Years 7 Months (55 months) | 7.1 | 7.5 | 7.5 |
| ICICI Bank | 7.8 | 15 months to less than 18 months | 7.2 | 7.5 | 7.5 |
| IDFC First Bank | 8.25 | 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 | 7.5 | 1 year to less than 3 years | 7.5 | 7.25 | 7 |
| Karur Vysya Bank | 8.1 | 760 days | 7.4 | 7.4 | 7.4 |
| Karnataka Bank | 7.65 | 375 days | 7.5 | 6.9 | 6.9 |
| Kotak Mahindra Bank | 7.9 | 390 days to less than 23 months | 7.6 | 7.6 | 6.7 |
| RBL Bank | 8.6 | 500 days | 8 | 8 | 7.6 |
| SBI Bank | 8.75 | More than 18 months to less than 2 years 3 days | 7.55 | 7.8 | 8.25 |
| South Indian Bank | 7.75 | 400 Days | 7.2 | 7.2 | 6.5 |
| Tamilnad Mercantile Bank | 8 | 400 days | 7.5 | 7 | 7 |
| Yes Bank | 8.5 | 18 months | 7.75 | 8 | 8 |
| Government Bank | |||||
| Bank Of Baroda | 7.75 | 399 days | 7.35 | 7.65 | 7.15 |
| Bank Of India | 7.8 | 666 days | 7.3 | 7.25 | 6.75 |
| Maharashtra Bank | 7.75 | 777 days | 7.25 | 7 | 7 |
| Canara Bank | 7.75 | 444 days | 7.35 | 7.3 | 7.2 |
| Central Bank Of India | 7.95 | 444 days | 7.35 | 7.25 | 7 |
| Indian Bank | 7.75 | 400 days -IND SUPER | 6.6 | 6.75 | 6.75 |
| Indian Overseas Bank | 7.8 | 444 days | 7.6 | 7 | 7 |
| Punjab National Bank | 7.75 | 400 days | 7.3 | 7.5 | 7 |
| Punjab & Sind Bank | 7.8 | 666 days | 6.8 | 6.5 | 6.5 |
| State Bank Of India | 7.75 | 444 days | 7.3 | 7.25 | 7.5 |
| Union Bank Of India | 7.9 | 333 days | 7.3 | 7.2 | 7 |
,Note :This list has been prepared by Paisa Bazaar.com. Updates till 21st August have been taken from the official website of various banks. This is for your information only. Banks keep changing the interest rate from time to time. In such a situation, before investing in the FD of any bank listed here, visit its official website or branch and get accurate information.)
Also read: SBI Mutual Fund’s scheme to turn 1 lakh into 5 lakh, SIP of just Rs 1100 did wonders in 5 years
Senior citizens get many benefits by investing money in FD
Senior citizens often prefer to invest their money in schemes where the risk is low and they also get good returns. One of the many investment options available for the elderly is the Fixed Deposit (FD) option. FD is very popular among investors due to its better returns and stability.
Senior citizens usually get more interest on FDs than common people. Most banks give 0.50% more interest on FDs to people above the age of 60 years. Apart from this, they are eligible for tax exemption under section 80TTB of the Income Tax Act on the returns received on deposits in FD schemes of banks, post offices or other financial institutions. Under this rule, senior citizens get the opportunity to avail tax deduction of up to Rs 50,000. Apart from this, there will be no TDS deduction on interest payments up to Rs 50,000 in a financial year.
The money deposited in FD can be useful in dealing with situations like emergency. Some banks allow you to withdraw money from FD before time without any penalty or additional charge. Before investing their money, investors should compare the FD rates and tenure of many banks. Only after doing this will they be able to choose a scheme with higher returns. By doing research before investing, one can earn good money from FD. Also, investors must read the terms and conditions before investing in any FD scheme.
Also read: SIP Return: ICICI Prudential’s scheme made SIP of Rs 3000 into 3 crores, get 2.50 crores by investing 3 lakhs at once
How to open an FD account
It is very easy to open an FD account these days. If you want to invest in FD, you can open this account by visiting your nearest bank branch. Those who know how to use the internet can apply to open an FD account by visiting the official website of the bank from home. Investors are advised to open their FD account in the bank where they already have a bank account, in fact the process can be even easier in this case. In this way, investors can save time in paperwork and other necessary procedures.
