The US Central Bank Federal Reserve recently cut interest rates by 50 basis points i.e. 0.5 percent. Now the eyes of investors are on Reserve Bank of India. Industry analysts believe that RBI can take a more important stance regarding interest rates compared to other central banks. In such a situation, the possibility of interest rate cut cannot be ignored. If this happens, then all the banks of the country can change the FD rates of different tenures. In such a situation, the present time may prove to be better for investors planning to keep money in bank FD in the near future. Especially for senior citizens who want to get better returns by investing their savings in safe investment options.
Know the features before investing
Fixed deposits are a safe investment option for senior citizens i.e. people aged 60 years and above. These investment options offer multiple benefits tailored to the specific needs of the senior citizen, making it important to evaluate various factors before investing.
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FD rates are very important for senior citizens. Banks offer higher returns on FD to senior citizens than their general customers. This is the reason why bank FD is a good option for people aged 60 years and above who want stable income on their savings. However, it is important to know what the current interest rates are so that your investment remains competitive.
Senior citizens get additional 0.50% interest on fixed deposits compared to general public options. This small increase can have a significant impact on total earnings in the long run. For example, if a bank offers 8% interest on a 5-year fixed deposit to its general customer, then a senior citizen can get 8.50% interest on a fixed deposit of the same tenure in the bank.
The tenure of fixed deposit is also an important thing. Senior citizens should choose a tenure that suits their financial goals and needs. Shorter tenures may offer greater flexibility, while longer tenures often yield higher interest rates.
Tax matters are also important. While the interest earned on fixed deposits is generally taxable, senior citizens get more exemption from it. Therefore, it is wise to understand the tax rules before taking investment decisions and calculate the subsequent earnings.
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Liquidity is also an important aspect, especially for senior citizens who may need money in situations like medical emergencies. In such a situation, money can be withdrawn from FD. It is also very important to review the investment strategy from time to time. Changes in economic conditions and interest rates can affect the performance of fixed deposits. By continuously monitoring the investment portfolio and making necessary changes, seniors can increase their earnings and ensure their financial stability after retirement.
Where are you getting the highest returns?
Here is a list of all the banks offering better returns on senior citizen FD. In which all the big banks of the country like HDFC Bank, SBI, Bank of India, PNB, Axis Bank, Kotak Bank are included.
| Bank Fixed Deposit Rates | ||||||
| Bank Name | Interest Rates(pa) | |||||
| Highest slab | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | |||
| , | Tenure | |||||
| SMALL FINANCE BANKS | ||||||
| AU Small Finance Bank | 8.50 | 18 months | 7.75 | 8.00 | 7.75 | |
| Equitas Small Finance Bank | 9.00 | 444 days | 8.70 | 8.50 | 7.75 | |
| ESAF Small Finance Bank | 8.75 | 2 years to less than 3 years | 6.50 | 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 | 9.50 | 546 days to 1111 days | 7.50 | 9.50 | 6.75 | |
| Suryoday Small Finance Bank | 9.10 | Above 2 years to 3 years | 7.35 | 9.10 | 8.75 | |
| Ujjivan Small Finance Bank | 8.75 | 12 months | 8.75 | 7.70 | 7.70 | |
| Unity Small Finance Bank | 9.50 | 1001 days | 8.35 | 8.65 | 8.65 | |
| Utkarsh Small Finance Bank | 9.10 | 2 years to 3 years; 1500 days | 8.60 | 9.10 | 8.35 | |
| PRIVATE SECTOR BANKS | ||||||
| Axis Bank | 7.75 | 15 months to less than 2 years; 5 years to 10 years | 7.20 | 7.60 | 7.75 | |
| Bandhan Bank | 8.55 | 1 year | 8.55 | 7.75 | 6.60 | |
| City Union Bank | 8.00 | 333 days | 7.25 | 6.75 | 6.50 | |
| CSB Bank | 7.75 | 401 days | 5.50 | 6.25 | 6.25 | |
| DBS Bank | 8.00 | 376 days to 540 days | 7.50 | 7.00 | 7.00 | |
| DCB Bank | 8.55 | 19 months to 20 months | 7.60 | 8.05 | 7.90 | |
| Federal Bank | 7.90 | 50 months; 777 days | 7.30 | 7.50 | 7.25 | |
| HDFC Bank | 7.90 | 4 Years 7 Months (55 months) | 7.10 | 7.50 | 7.50 | |
| ICICI Bank | 7.80 | 15 months to less than 18 months | 7.20 | 7.50 | 7.50 | |
| IDFC First Bank | 8.25 | 400 days | 7.00 | 7.50 | 7.25 | |
| IndusInd Bank | 8.25 | 1 year to 2 years | 8.25 | 7.75 | 7.75 | |
| Jammu & Kashmir Bank | 7.50 | 1 year to less than 3 years | 7.50 | 7.25 | 7.00 | |
| Karur Vysya Bank | 8.10 | 760 days – Special Deposit | 7.40 | 7.40 | 7.40 | |
| Karnataka Bank | 8.00 | 375 days | 7.85 | 7.00 | 7.00 | |
| Kotak Mahindra Bank | 7.90 | 390 days to less than 23 months | 7.60 | 7.60 | 6.70 | |
| RBL Bank | 8.60 | 500 days | 8.00 | 8.00 | 7.60 | |
| SBM Bank India | 8.75 | Above 18 months to less than 2 years 3 days | 7.55 | 7.80 | 8.25 | |
| South Indian Bank | 7.75 | 400 days | 7.20 | 7.20 | 6.50 | |
| Tamilnad Mercantile Bank | 8.00 | 400 days | 7.50 | 7.00 | 7.00 | |
| Yes Bank | 8.50 | 18 months | 7.75 | 8.00 | 8.00 | |
| PUBLIC SECTOR BANKS | ||||||
| Bank of Baroda | 7.80 | 399 days – bob Monsoon Dhamaka | 7.35 | 7.65 | 7.15 | |
| Bank of India | 7.75 | 333 days – Star Dhan Vriddhi | 7.30 | 7.25 | 6.75 | |
| Bank of Maharashtra | 7.75 | 777 days | 7.25 | 7.00 | 7.00 | |
| Canara Bank | 7.75 | 444 days | 7.35 | 7.30 | 7.20 | |
| Central Bank of India | 7.95 | 444 days | 7.35 | 7.25 | 7.00 | |
| Indian Bank | 7.75 | 400 days – IND SUPER | 6.60 | 6.75 | 6.75 | |
| Indian Overseas Bank | 7.80 | 444 days | 7.60 | 7.00 | 7.00 | |
| Punjab National Bank | 7.75 | 400 days | 7.30 | 7.50 | 7.00 | |
| Punjab & Sind Bank | 7.80 | 666 days | 6.80 | 6.50 | 6.50 | |
| State Bank of India | 7.75 | 444 days – Amrit Vrishti | 7.30 | 7.25 | 7.50 | |
| Union Bank of India | 7.90 | 333 days | 7.30 | 7.20 | 7.00 | |
