City Union Bank and Capital Small Finance Bank revised their fixed deposit (FD) rates in the week ending May 11, 2024. Bank fixed deposits are the most popular investment instruments, one of the oldest and with the widest reach among the public. They are especially useful for senior citizens, as they provide guaranteed income and financial stability.

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Here are the details of the revised FD rates of these two banks:

City Union Bank:

The bank revised its FD rates on May 6, 2024, offering senior citizens the highest 7.75 per cent interest. Senior citizens get an additional interest of at least 50 basis points than the general public, depending on the tenures. However, in the case of this bank, the rates are the same for seniors and the general public up to 180-day FDs. For 181-270 days, seniors get an extra 0.25 per cent interest, or 6.50 per cent. For 271 to 364 days, it is 6.75 per cent, and for 365 to 399 days, it is 7.25 per cent.

For 400-day FDs, it offers 7.75 per cent, including a 0.50 per cent additional rate, the highest rate after the revision. The general public gets 0.25 per cent extra for this FD. For 401 days to three years, the rate is 6.75 per cent, and for above three years to 10 years, it is 6.50 per cent.

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Capital Small Finance Bank:

This small finance bank offers senior citizens the highest rate of 8.05 per cent on its FDs. Seniors can avail of an additional 0.50 per cent on FDs. For 180 days to less than a year, it offers 6.00 per cent; for one year to less than five years, it is 7.65 per cent; and for five years to 10 years, the rate is 7.60 per cent for seniors.

The rates are higher for special-category FDs. For seniors, they are 8.00 per cent for 12 months and 8.05 per cent for 400 days, the highest offered by the bank. For other special FDs, the interest rate is 7.90 per cent for 600 days and 7.80 per cent for 900 days. The bank revised the rates on May 6, 2024.

Note that deposits in private, public, and foreign banks, local area banks, small finance banks, payment banks, regional rural banks, cooperative banks, district central cooperative banks, and urban cooperative banks are insured up to Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC) in case of liquidation or cancellation of bank licence, merger or reconstruction. This amount includes the customers’ principal and interest amount held in a bank.