Senior citizens who are basically trying to park their money safely might see better returns in fixed deposits , because now a few banks are paying 8% or more on select senior citizen FD plans. And in general, small finance banks are showing up more often with stronger numbers, when compared to many bigger private and public sector banks. Fixed deposits still tend to be a go-to for retirees, since you get assured income, lower risk, and the returns are more or less predictable.
9 Banks Giving 8% or more FD interest
Small finance banks are kinda dominating the senior citizen fixed deposit space right now, with some of the more interesting interest rates. The leading banks that are offering 8% or higher include:
Equitas Small Finance Bank – 8.50%
Shivalik Small Finance Bank – 8.50%
Jana Small Finance Bank – 8.30%
Ujjivan Small Finance Bank – 8.30%
ESAF Small Finance Bank – 8.25%
Suryoday Small Finance Bank – 8.25%
Utkarsh Small Finance Bank – 8.25%
DCB Bank – 8.00%
Also, Suryoday Small Finance Bank is giving 8.05% interest on a five-year FD tenure. So, for older investors who are looking for a longer lock-in, it is one of the higher-yielding alternatives.
Large private banks still lower
Even though big private banks keep pulling customers with their services and branch reach, their senior citizen FD rates are generally lesser.
Here are some of the well-known private banks, and their rates:
Axis Bank – 7.25%
HDFC Bank – 7.00%
ICICI Bank – 7.10%
Kotak Mahindra Bank – 7.30%
IndusInd Bank – 7.75%
YES Bank – 7.75%
IDFC FIRST Bank – 7.60%
Yes, these options may feel easy and steady, but in most cases the FD returns are still lower than what several small finance banks are offering.
PSU banks staying under 7.5%
Public sector banks also haven’t matched the small finance banks on senior citizen FD rates. Right now, the best rate among PSU banks is coming from Bank of India at 7.45%.
Other PSU banks that are offering fairly close rates include:
Punjab & Sind Bank – 7.35%
Indian Bank – 7.30%
Bank of Baroda – 7.25%
Central Bank of India – 7.20%
Union Bank of India – 7.15%
Bank of Maharashtra – 7.15%
Canara Bank – 7.10%
Punjab National Bank – 7.10%
State Bank of India – 7.05%
Things senior citizens should think about before investing
Higher FD rates can mean better gains, but senior citizens should not just chase the headline number. Consider bank reliability, whether deposit insurance is covering your amount properly, the tenure options available, and also the rules on premature withdrawal , because that can change your final payoff quite a bit.
Small finance banks might hand out better yields, but investors should still judge safety and financial strength together with the return rate, not only the interest percentage.