Interest rates have plummeted to record lows while equity markets are showing high turbulence with the second wave of Covid-19. At this time, senior citizens must be looking at safer bets to invest their life earnings.
A few banks are still offering high interest rates on special fixed deposit for senior citizens, despite the fact that interest rates have fallen to record lows. Most of these schemes were launched in May 2020, with the last date for investment being March 31, 2021. The last date, however, has now been extended till June 30, 2021.
So, if you are a senior citizen or know a senior citizen willing to invest in fixed deposits then you can avail higher interest rates in schemes offered by smaller private banks and small finance banks.
BankBazaar’s data show that a few smaller private banks are offering a 7.50% interest rate on three-year FDs for senior citizens, according to a report by MoneyControl. In comparison, other private and public banks are offering a tad bit lower interest rates in their three-year FDs. Notably, the minimum investment in these FDs differ from bank to bank and ranges from Rs 1,000 to Rs 10,000.
Which banks are offering the best interest rates on FDs?
Currently, Yes Bank is offering 7.50% on three-year FDs for senior citizens. Meanwhile, DCB Bank and IndusInd Bank are offering 7.25% and 7.00% interest rates on three-year FDs for senior citizens, respectively.
In comparison, private banks such as Axis Bank and Kotak Mahindra Bank are offering 5.9% and 5.6 % on their three-year FD investments, respectively. Moreover, ICICI Bank and HDFC Bank are providing a 5.65% interest rate on three-year FDs for senior citizens.
Coming to small finance banks, Suryoday Small Finance Bank is offering a 7.50% interest rate on three-year FDs for senior citizens, which is among the highest. Meanwhile, Ujjivan Small Finance Bank is providing a 7.25% interest on three-year FDs for senior citizens.