Senior citizens looking for higher guaranteed income have good news. The Fincare Small Finance Bank (FSFB) has become India’s latest small finance bank to offer senior citizens more than 9 per cent interest rates on fixed deposits of particular durations.
FSFB announced to provide senior citizens with 9.11 per cent interest rates for fixed deposits of 1,000 days, effective May 25, 2023. Yield could go up to 9.43 per cent. Of the 12 Indian small finance banks, four are currently offering 9.00 per cent and above interest rates on different tenures.
However, in the case of joint accounts, only the first holder would be entitled to higher rates. So, those 60 years and above can avail of this benefit.
For the general public, FSFB offers an 8.31 per cent interest rate for a 750-day FD, 8.25 per cent for 36 months, one day to 42 months, and 8.11 per cent for 500 days. The interest rate for 1,000 days is 8.51 per cent; for all the other tenures, it is 8.00 per cent or below.
The minimum investment for a fixed deposit with the FSFB is Rs 5,000. It also offers a premature withdrawal facility on FDs but with an applicable penalty on interest rates.
Other small finance banks that offer more than 9.00 per cent rates are the following:
Suryoday Small Finance Bank
On May 5, 2023, Suryoday Small Finance Bank increased its fixed deposit rates to 9.6 per cent for senior citizens for the 5-year tenure with an indicative yield of around 9.95 per cent. For a 999-day FD, it is 9.50 per cent and for more than one year to two years; it is 9.00 per cent. For the general public, it offers 9.00 per cent for 999 days and 9.10 per cent for five years.
Unity Small Finance Bank
Unity Small Finance Bank revised its interest rates on May 2, 2023. It offers senior citizens the highest rate of 9.50 per cent for the 1001-day tenure, and for the general public, it is 9.00 per cent. It also provides two more terms with more than a 9.00 per cent interest rate for senior citizens. For over six months to 201 days and 501 days period, it offers 9.25 per cent.
ESAF Small Finance Bank
ESAF Small Finance Bank offers a 9.00 per cent rate for senior citizens for a 2-year to less than 3-year tenure. The rates are effective from April 14, 2023.
Equitas Small Finance Bank
The bank offers 9.00 per cent FD interest rates to senior citizens for 888 days, effective April 11, 2023. For all other tenures, the rates are below 9.00 per cent for seniors.