Fixed deposits (FDs) are a secure and reliable investment option, especially for senior citizens. They offer attractive interest rates and ensure the safety of their hard-earned money.

In this guide, we will explore the highest FD rates available for senior citizens across different banks and financial institutions.

GOVERNMENT BANKS: STEADY RETURNS & RELIABILITY 

If you prefer the stability and trust of government banks, here are the highest FD rates for senior citizens:

Punjab & Sind Bank:

Highest Rate: 7.35%

Tenure for Highest Rate: 555 days

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 7.85%

Union Bank:

Highest Rate: 7.30%

Tenure for Highest Rate: 800 days; 3 years

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 7.80%

Central Bank of India:

Highest Rate: 7.25%

Tenure for Highest Rate: 444 days

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 7.75%

PRIVATE BANKS: HIGHER RETURNS AND QUALITY SERVICE

Private banks often offer competitive rates along with personalised services. Here are the highest FD rates for senior citizens at private banks:

Bandhan Bank:

Highest Rate: 8.00%

Tenure for Highest Rate: 600 days

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 8.50%

DCB Bank:

Highest Rate: 8.00%

Tenure for Highest Rate: 700 days to 36 months

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 8.50%

RBL Bank:

Highest Rate: 7.80%

Tenure for Highest Rate: 453-725 days

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 8.30%

SMALL FINANCE BANKS: ATTRACTIVE RATES & TAILORED SERVICES

Small finance banks are known for offering higher interest rates. Here are the highest FD rates for senior citizens in small finance banks:

Suryoday Small Finance Bank:

Highest Rate: 9.10%

Tenure for Highest Rate: 999 days

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 9.60% 

Unity Small Finance Bank:

Highest Rate: 9.00%

Tenure for Highest Rate: 1,001 days

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 9.50% 

ESAF Small Finance Bank:

Highest Rate: 8.50%

Tenure for Highest Rate: 2 years to <3 years

Senior Citizen Premium: 0.50%

Senior Citizen Rate: 9.00%

CORPORATE FDs: COMPANIES, NBFCS, AND HFCS

For those looking beyond traditional banks, corporate FDs from reputed companies, non-banking financial companies (NBFCs), and housing finance companies (HFCs) can provide attractive rates. Here are the highest FD rates for senior citizens:

Bajaj Finance:

Credit Rating: AAA

Highest Rate: 7.50%

Tenure for Highest Rate: 60 months

Senior Citizen Premium: 0.25%

Senior Citizen Rate: 7.75%

Mahindra Finance:

Credit Rating: AAA

Highest Rate: 7.35%

Tenure for Highest Rate: 33-60 months

Senior Citizen Premium: 0.25%

Senior Citizen Rate: 7.60%

HDFC Ltd:

Credit Rating: AAA

Highest Rate: 7.30%

Tenure for Highest Rate: 33 months 1 day to 66 months

Senior Citizen Premium: 0.25%

Senior Citizen Rate: 7.55%

FACTORS TO CONSIDER

While considering FD rates for senior citizens, it’s essential to keep the following factors in mind:

Tenure: Longer tenures generally offer higher interest rates. So, one should choose a tenure that aligns with one’s financial goals and liquidity needs.

Credibility: Ensure that the bank or institution you choose has a good credit rating so that the risk of a default is minimal.

Premature Withdrawal: Understand the terms and penalties associated with premature withdrawal, as it may impact your returns.

Senior Citizen Premium: Many banks offer an additional interest rate premium to senior citizens. Take advantage of this benefit.

Tax Implications: Interest earned from FDs is taxable. Evaluate the post-tax returns to make an informed decision.

Senior citizens can maximise their savings by investing in fixed deposits with attractive interest rates. Government banks, private banks, small finance banks, and corporate FDs offer competitive rates to suit different preferences. Assess the tenure, credibility, premature withdrawal terms, senior citizen premium, and tax implications before finalising your investment. Consult with a financial advisor if needed to make the best decision for your financial well-being.