Senior citizens do not want to take risks on their savings. Fixed deposit or FD remains a popular investment option among them. The reason is that FD is a safe investment option. It gives guaranteed returns. Usually senior citizens get 0.5% more interest on FD than common people. FD can be useful when needed. The process of investing in it is easy.
During periods of increased market volatility, many senior citizens prefer to avoid market-linked investments to preserve and grow their retirement savings by investing in fixed deposits (FDs). In fact, many senior citizen depositors rely on regular interest payments from their non-cumulative FDs, which are available on a monthly, quarterly, half-yearly or yearly basis, to cover their daily expenses.
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FDs serve as an effective tool for setting up an emergency fund, as they not only provide capital gains but also allow premature withdrawals. This enables individuals to access funds for immediate needs, even at the cost of a potential loss of up to 1% in interest income.
However, to increase the potential rewards without any investment risk, elderly depositors may consider using the FD laddering method. This approach involves dividing their savings into multiple FDs with different maturity periods, allowing for reinvestment opportunities to create a continuous investment cycle.
For example, if a depositor has Rs 5 lakh, instead of depositing the entire amount in a single FD, they can choose to split it into five FDs of Rs 1 lakh each, with a maturity period ranging from 1 to 5 years. By adopting this strategy, senior citizens can benefit from higher interest rates in the future, while minimising the need to prematurely close FDs to meet any immediate financial needs as a result of the reduction in interest income.
Also read: Highest Return: Money doubles in 3 years, 5 times in 5 years and 10 times in 10 years, this mutual fund scheme consistently tops the return chart
Where you are getting the highest returns, invest by looking at the tenure and interest rate
If you are looking for such FD schemes for senior citizens where you can get the highest return on investment, then for your convenience, a list of all the government, private and small finance banks is given here. Along with this, information about the interest rates on FDs of different tenures in these banks is also given. You can take an investment decision by carefully reviewing the interest rates being offered on bank FDs.
| Senior Citizen FD Interest Rate | |||||
| Name of bank | Annual interest rate | ||||
| The highest interest | 1 Year FD (%) | 3 Year FD (%) | 5 Year FD (%) | ||
| Interest (%) | 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 | 8.35 | 1 year | 8.35 | 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 | 400 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 | 7.75 | 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 | 7 |
| Karur Vysya Bank | 8 | 444 days | 7.4 | 7.4 | 7.4 |
| Karnataka Bank | 7.65 | 375 days | 7.5 | 6.9 | 6.3 |
| Kotak Mahindra Bank | 7.9 | 390 days to less than 23 months | 7.6 | 7.6 | 6.7 |
| RBL Bank | 8.5 | 18 months to 2 years | 8 | 8 | 7.6 |
| SBI Bank | 8.75 | 3 years 2 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 | 7.8 | 444 days | 7.35 | 7 | 7 |
| Indian Bank | 7.75 | 400 days -IND SUPER | 6.6 | 6.75 | 6.75 |
| Indian Overseas Bank | 7.8 | 444 days | 7.4 | 7 | 7 |
| Punjab National Bank | 7.75 | 400 days | 7.25 | 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 | 7.75 | 399 days | 7.3 | 7.2 | 7 |
| Source: Paisabazaar.com | |||||
| Interest rates as of 30th July 2024 | |||||
,Note :This list has been prepared by Paisa Bazaar.com. Updates till July 30 have been taken from the official websites 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.)
How to open an FD account
Opening an FD account in a bank is quite easy. If you want to invest in FD, you can open this account by visiting your nearest bank branch. Apart from this, you 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. By doing this, they can save time in paperwork and other necessary procedures.
