4 Private Sector Banks Offering 7% Returns On FDs For Senior Citizens

The Reserve Bank of India (RBI) publicly stated on February 10, 2022 that the key repo rate would remain at 4%, causing a number of leading banks, including State Bank of India (SBI), HDFC Bank, UCO Bank, Central Bank of India, Federal Bank, IDBI Bank, and IndusInd Bank, to raise their interest rates on fixed deposits across multiple tenors. As a result, retail investors, particularly senior citizens, will see interest rates rise in the banking sector, with no further interest rate cuts. For elderly people looking for better returns on fixed deposits, we've compiled a list of the top four private sector banks that are now giving up to 7% interest on fixed deposits of less than Rs 2 crore maturing in three years. Senior persons should keep in mind that their deposits in these banks will not only offer them a 7% return but their deposits will also be insured up to Rs 5 lakhs by DICGC.

Note: Interest rates on fixed deposits of 3 years are marked in bold.

RBL Bank

On the 3rd of February 2022, the bank amended its fixed deposit interest rates, allowing elderly persons to receive 7% interest on deposits of less than Rs 3 Cr maturing in 24 months to less than 36 months.

Tenure	Senior Citizen Interest Rates p.a.
7 days to 14 days	3.75%
15 days to 45 days	4.25%
46 days to 90 days	4.50%
91 days to 180 days	5.00%
181 days to 240 days	5.50%
241 days to 364 days	5.75%
12 months to less than 24 months	6.75%
24 months to less than 36 months	7.00%
36 months to less than 60 months	6.80%
60 months to 60 months 1 day	6.80%
60 months 2 days to less than 120 months	6.25%
120 months to 240 months	6.25%
Tax Savings Fixed Deposit (60 months)	6.80%
Source: Bank Website

Yes Bank

This private sector lender last changed its interest rates on fixed deposits of less than Rs 2 crore on January 4, 2022. Following the revision, the bank is now offering elderly residents a 7% interest rate on fixed deposits maturing in three to ten years.

Tenure	Senior Citizen Interest Rates p.a.
7 to 14 days	3.75%
15 to 45 days	4.00%
46 to 90 days	4.50%
3 months to < 6 months	5.00%
6 months to < 9 months	5.25%
9 months to < 1 year	5.50%
1 Year < 18 months	6.25%
18 Months to < 3 years	6.50%
3 Years to <= 10 years	7.00%
Source: Bank Website

IndusInd Bank

On February 16, 2022, IndusInd Bank adjusted interest rates on fixed deposits of less than Rs 2 crore. Senior citizens can now earn 7% interest on fixed deposits maturing in two years to 61 months, as well as on the Indus Tax Saver Scheme (5 years).

Tenure	Senior Citizen Interest Rates p.a.
7 days to 14 days	3.25
15 days to 30 days	3.5
31 days to 45 days	3.75
46 days to 60 days	4
61 days to 90 days	4.25
91 days to 120 days	4.5
121 days to 180 days	5
181 days to 210 days	5.1
211 days to 269 days	5.25
270 days to 354 days	6
355 days to 364 days	6
1 year to below 1 Year 6 Months	6.5
1 Year 6 Months to below 1 Year 7 Months	6.5
1 Year 7 Months to below 2 Years	6.5
2 years to below 2 years 6 Months	7
2 years 6 months to below 2 years 9 Months	7
2 years 9 months upto 3 years	7
Above 3 years upto 61 months	7
61 months and above	6.5
Indus Tax Saver Scheme (5 years)	7
Source: Bank Website

Bandhan Bank

Bandhan Bank last revised its interest rates on retail domestic and non-resident term deposits of less than Rs 2 crore on January 12, 2022. The bank is currently providing senior people a 7% interest rate on fixed deposits with maturities of two to three years, as well as three to five years.

Tenure	Senior Citizen Interest Rates p.a.
7 days to 14 days	3.75%
15 days to 30 days	3.75%
31 days to Less than 2 months	4.25%
2 months to less than 3 months	4.25%
3 months to less than 6 months	4.25%
6 months to less than 1 year	5.25%
1 year to 18 months	6.00%
Above 18 months to less than 2 years	6.00%
2 years to less than 3 years	7.00%
3 years to less than 5 years	7.00%
5 years to up to 10 years	6.35%
Source: Bank Website