World Day of Older Persons, celebrated on 21 August each year, draws attention to the challenges faced by people over 60 and explores ways to improve their quality of life. This year, let’s focus on where older people can safely deposit their savings for better returns and easier access to their money.
According to PaisaBazaar, the top five banks offering the highest interest rates on senior citizens fixed deposits in August from both private and public sector banks are:
Private sector banks
RBL Bank: It offers the highest rate of 8.6% for a term of 500 days.
Industrial Bank:Sets a maximum rate of 8.25% for holdings ranging from 1 to 2 years.
SBM Bank India:It offers an interest rate of 8.75% for a term of 3 years and 2 days.
DCB Bank:Sets a maximum rate of 8.55% for terms of 19 to 20 months.
SI Bank:It offers a maximum interest rate of 8.5% for a term of 18 months.
Public sector banks
Bank of India: It offers the highest rate of 8.5% for a term of 666 days.
Union Bank of India:It provides for a maximum rate of 7.9% for a duration of 333 days.
Central Bank of India:It offers a maximum interest rate of 7.8% for a term of 444 days.
Punjab and Sind Bank:It offers an interest rate of 7.8% for a term of 666 days.
Indian Overseas Bank:It offers a maximum rate of 7.8% for a term of 444 days.
The top five small banks offering the highest interest rates on fixed deposits for senior citizens in August are:
Unity Small Finance Bank:Offers the highest interest rate of 9.5% for a term of 1001 days.
Northeast Small Finance BankIt also offers a maximum rate of 9.5% for tenures ranging from 546 to 1111 days.
Suryoday Small Finance Bank:It offers a maximum rate of 9.1% for deposits with terms greater than 2 to 3 years.
Utkarsh Small Finance Bank:It offers a maximum interest rate of 9.1% for terms between 2 years and 3 years and 1500 days.
Equitas Small Finance Bank: It offers an interest rate of 9% for a term of 444 days.
Bank of India
The Bank of India recently revised its fixed deposit interest rates for senior citizens. For its 666-day fixed deposit, senior citizens now get an interest rate of 8.10% per annum, while senior citizens get 7.80% per annum.
“For those with deposits ranging from Rs 30 crore to less than Rs 100 crore, the bank is offering 6.50% interest for a tenor of 180 to 210 days, and 6.75% for a tenor of 211 days to just under a year. If you have a deposit of Rs 20 crore or less, you can earn 7% interest for a tenor of 1 year; senior citizens benefit from a higher rate of 7.50% and non-citizens get 7.65%,” according to the Bank of India website.
These rates apply to Domestic, NRO and NRE deposits.
RBL Bank
RBL Bank offers fixed deposits specifically designed for senior citizens and elderly people. For senior citizens (aged 60 to less than 80 years), there is an interest rate of up to 8.60% per annum for a tenure of 500 days for deposits below Rs 30 crore. This fixed deposit is a reliable source of fixed income, with the freedom to choose the tenor, frequency of repayment and investment amount.
For senior citizens (80 years and above), RBL Bank offers an even higher interest rate of 8.85% per annum for a tenure of 500 days on deposits below Rs 3 crore.
DCB Bank
DCB Bank’s Fixed Deposit for Senior Citizens offers interest rates ranging from 4.25% to 8.55% per annum, depending on the tenor. The bank offers a flexible tenor range ranging from 7 days to 10 years, along with an overdraft facility of up to 80% of the value of the fixed deposit, allowing access to funds without breaking the deposit.
Seniors can also choose how to receive interest: monthly, quarterly, semi-annually, or annually. Additionally, DCB Bank offers value-added services such as a complimentary checking account and home banking, making it a convenient option for seniors. You can access these services through DCB Bank’s mobile banking app or its personal online banking platform.
A standout option from DCB Bank is the Health Plus Fixed Deposit. This plan comes with free medical benefits and emergency services. For fixed deposits of Rs 25 lakh or more, customers get up to 10 doctor visits, pharmacy expense claims of up to Rs 3,000 and unlimited emergency ambulance services.
Additionally, DCB offers a Tax Saving Fixed Deposit, which provides tax benefits under Section 80C while also ensuring returns.
SBI’s “Amrit Vrishti” plan
State Bank of India (SBI) launched the ‘Amrit Vrishti’ scheme in July. This term deposit scheme offers an annual interest rate of 7.25% on 444-day deposits, with senior citizens receiving an additional 0.50% interest.
For seniors, finding the right place to put their savings is key to ensuring financial stability in later years.
Which banks offer the best FD rates?
Small-scale banks like Unity Bank, Suryoday Bank, Equitas Bank and others are currently offering FD interest rates of 7.5% per annum or more for a period of 10 years. Some private sector banks like RBL Bank, IndusInd Bank and Yes Bank are even offering rates above 8% per annum to senior citizens.
First published: August 21, 2024 | 1:09 PM IS
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