Banks Offering FD Interest Rates Upto 8% For Senior Citizens- Check Here

For the first time in nearly three years, seniors are seeing fixed-deposit returns of 8% or higher, and many are rushing to their banks to review their existing FDs. The RBI's consecutive rate hikes have finally provided relief to senior citizens who rely on interest earnings for a living.

With several repo rate hikes by the Reserve Bank of India (RBI) in the last few months, bank fixed deposit (FD) rates have crossed 8% for the first time in nearly three years. This is a welcome development for senior citizens who keep their life savings in risk-free bank deposits and rely on interest income from investments.

Deposit rates fell to as low as 5.5% when the central bank cut repo rates to support the economy during the Covid-19 pandemic. Many depositors who renewed their FDs at the time were locked in for the lock-in period.

Most private banks are now offering 8% or higher interest rates on FDs, while most public banks are offering 7.5% or higher. As a result, depositors who want to take advantage of higher rates have made premature withdrawals.

While most banks pay higher interest rates to seniors than to general depositors, some banks, such as Union Bank of India, pay even higher rates to'super senior citizens,' those aged 80 or older. Deposits in this category are eligible for an additional 75 basis points above general interest rates.

PNB FD interest rate

PNB recently announced a 50 basis point increase in FD rates with maturities of 2-3 years on deposits under Rs 2 crore. Following the increase, the new interest rate for general depositors is 6.75%, with an additional 50 basis points for senior citizen depositors, who will no longer receive 7.25%.

SBI FD interest rate

SBI offers a maximum interest rate of 6.90% on deposits lasting 5 to 10 years, while senior citizens receive a rate of 7.25%. The SBI FD rate is 6.60% for deposits of one year to less than two years, and 7.25% for senior citizens on the same tenor. SBI FDs with terms ranging from 2 to 3 years now offer 6.75% and 7.25% to senior citizens.

HDFC Bank FD interest rates

HDFC Bank recently increased its interest rates on bulk fixed deposits (FDs) ranging from Rs 2 crore to Rs 5 crore. The new FD rates go into effect on January 3. Following the revision, HDFC Bank now offers 4.50% to 7% for general customers and 5% to 7.75% for senior citizens on deposits with terms ranging from 7 days to 10 years.

ICICI Bank FD interest rates

ICICI Bank offers 6.60% to 7% on deposits with maturities ranging from one to five years. The bank's interest rate ranges from 3% to 5.75% for terms less than 5 years.

Kotak Mahindra Bank FD interest rates

Kotak Mahindra Bank has revised its interest rates on fixed deposits of less than Rs 2 crore. Following the revision, the maximum standard rate of FD on deposits with terms ranging from 390 days to 23 months is 7% for general customers and 7.50% for senior citizens.