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Senior Citizen FD Interest Rate Up To 9.6%

Interest rates on senior citizen FDs have increased to as high as 9.6 per cent per annum, is it the peak of the interest rate cycle, or should you wait? A senior citizen FD investment strategy needs to be planned well to get benefit of interest rate hikes

Amit Sethi
June 8, 2023
Senior Citizen FD Interest Rate Up To 9.6%

Bank fixed deposits (FDs) are one of the favourite investment instruments for most senior citizen investors. Ease of investment, liquidity and a high level of safety are some of the features that make it highly popular. After a series of rate hikes, the stance of the Reserve Bank of India (RBI) in the April 2023 Monetary Policy Committee (MPC) meeting was to keep the interest rate unchanged. However, rate transmission has not yet happened completely, as the interest rate on FDs by some of the banks has recently been revised upward.

Interest rates on senior citizen FDs have significantly gone up, ranging around 9 per cent to 9.6 per cent per annum by some of the small saving banks. Let’s find out, what is the best FD interest rate for senior citizens.

Which Bank Is Best for FD for Senior Citizens?

Which Bank Is Best for FD for Senior Citizens?
Banks/Companies INTEREST RATE (PA) Applicable Tenor For Highest FD Rate
Private Banks
Suryoday Small Finance Bank 9.60 5 Years
Equitas Small Finance Bank 9.00 888 days
Utkarsh Small Finance Bank 8.85 1000 Days to 1500 Days
Ujjivan Small Finance Bank 8.75 80 Weeks
Bandhan Bank 8.50 600 Days
DCB Bank 8.50 More than 700 days 36 months
AU Small Finance Bank 8.50 24 Months 1 Day to 36 Months
RBL Bank 8.30 15 months to 725 days
IndusInd Bank 8.25 1 Year 6 Months to 3 Years 3 Months
Yes Bank 8.25 18 Month < 36 Months
Public Banks
Punjab & Sind Bank 7.85 555 Days
Union Bank 7.80 800 Days and 3 years
Central Bank of India 7.75 444 Days
Punjab National Bank 7.75 444 Days
Bank of Baroda 7.75 399 Days
Data as on respective banks’ website on 29 May 2023.

Highest Interest rate on Term deposits (for senior citizens of 60-80 years age; Deposit amount below Rs 2 Cr) for selected public & private banks are considered for data compilation. Top 15 Banks (including 5 Public & 10 Pvt. banks) with highest FD rates listed in the table.

Things That Senior Citizens Should Keep In Mind When Investing In FDs

“The broad advice right now is to lock into these rates since they’re not likely to climb too much hereon. If you’re going for an FD, pretty much every bank now offers 7.50% on select tenors to senior citizens. Some banks are offering these rates for 5-10 years as well. SCSS is offering 8.2% right now. It makes sense to lock into those tenors in a high-rate scenario such as this, as the FD can also be a long-term income generator”, says Adhil Shetty, CEO,

Most Small Financial Banks (SFBs) today offer deposit rates above 8 per cent, with senior citizens being offered 9 per cent. But higher returns often come with higher risks which depositors must understand. Senior citizen depositors should carefully evaluate the credibility and financial strength of SFBs before investing their money.


The author is an Independent Financial Journalist

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