As a preferred tool for investment, fixed deposits (FD) have a special place in a senior citizens’ portfolio.
For the week ending October 21, 2023, five banks have revised their deposit rates on fixed deposits. These include the private sector banks as well as small finance banks. Let us know more in detail about how much they are offering to their senior citizen depositors.
Senior citizens can avail of a maximum of 8.30 per cent on FD with a tenure of ‘15 months to less than 24 months’. The minimum is 4 per cent for ‘seven days to 14 days’. The bank revised the rates on October 16, 2023.
For ‘181 days to 240 days’, the rate of interest is 6 per cent, while for tenures of ‘241 days to 364 days’, it is 6.55 per cent. For ‘12 months to less than 15 months’, the bank is offering a rate of interest of 7.50 per cent. The rate of interest for tenures of ‘24 months to less than 36 months’ is 8 per cent, while for tenures of ‘36 months to 60 months 1 day’ it is 7.60 per cent. For tenures of ‘60 months 2 days to 120 months’, the deposit rate is 7.50 per cent.
The highest rate that seniors can avail of from ICICI Bank after the rate revision on October 16, 2023, is 7.50 per cent. For FDs with tenures of ‘185 days to 270 days’ the deposit rate is 6.25 per cent, and for ‘271 days to less than 1 year’ it is 6.50 per cent. From ‘1 year to less than 15 months’, the rate of interest is 7.20 per cent, while from ‘15 months to two years’, it is 7.65 per cent. For deposits with different tenures between ‘2 years 1 day’ and 10 years, the bank is offering a rate of interest of 7.50 per cent.
The minimum amount to open FD is Rs 10,000.
Federal Bank revised its FD rates on October 19, 2023. After the revision, the maximum rate of interest that a senior depositor can get is 7.90 per cent on a fixed deposit of 400 days. For the general public, it is 7.40 per cent. For tenures between 181 days and 270 days, the rate of interest is 6.25 per cent, and for 271 days to less than one year, it is 6.50 per cent for seniors.
The rate of interest is more than 7 per cent for all the tenures above one year.
For 1 year to less than 13 months, it is 7.30 per cent, for 13 months to 399 days, it is 7.80 per cent, for 400 days, the deposit rate is 7.90 per cent, while for 401 days to 21 months, it is 7.80 per cent. For tenures of 21 months and above to less than two years, the bank is offering a deposit rate of 7.25 per cent. For two years to less than three years, seniors can avail of a deposit rate of 7.55 per cent. For three years to less than five years, the rate of interest is 7.10 per cent, and for five years and above, it is 7.25 per cent.
The bank is offering the highest deposit rate of 7.60 per cent to senior citizens for a 444-day fixed deposit. The bank has named its senior citizen FDs as Acharya Deposits and is offering a rate of interest in the range of 4.75 per cent to 7.60 per cent. The minimum rate of interest of 4.75 per cent is available on deposits with tenures of ‘181 days to 190 days’ and ‘192 days to less than 1 year’. Further, it is 5.50 per cent for FDs with tenures of one year, 6 per cent for tenures ‘above 1 year to less than 444 days’ and ‘above 444 days to 2 years’ period, and 7.10 per cent for ‘750 days’ and ‘890 days to 910 days’.
For tenures, ‘above 2 years to less than 750 days’, ‘above 750 days to less than 890 days’, and ‘above 910 days to 5 years’, it is 6.25 per cent, while for more than five years to 10 years, it is 6.50 per cent.
The bank revised its rates on October 18, 2023.
South Indian Bank
The bank revised its deposit rates on October 21, 2023. It is offering a minimum of 3.40 per cent for ‘7 days to 30 days’ to a maximum of 7.5 per cent for ‘1 year 1 day’ to senior citizens. Seniors get an additional 0.50 per cent over and above the rate offered to the general public.
The deposit rate for a one-year FD is 7.1 per cent. The FD rates for other tenures are: 7.50 per cent for one year one day, 7 per cent for one year two days to 499 days, 7.20 per cent for 500 days, and 7 per cent for 501 days to less than 30 months. Above that, for a tenure of 30 months, the rate of interest is 7.25 per cent, while for tenures exceeding 30 months, but less than five years, it is 7 per cent. The deposit rate for tenures of five years to less than 66 months is 6.50 per cent, while for 66 months (green deposit), it is 7 per cent. For tenures exceeding 66 months to up to 10 years, the deposit rate is 6.50 per cent.