Senior Citizens FDs: 3 Fixed Deposits Offering Highest Interest Rate Of Up To 8.77%

After the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) raised repo rate by 50 basis points (bps) to 4.19%, several renowned private, public, and non-banking financial companies decided to hike interest rates on their fixed deposits. The various banks and NBFCs offer higher interest rates to senior citizens.

Given below are three fixed deposits that offer attractive interest rates to senior citizens:

Tamil Nadu Transport Development Finance Corporation

It is popularly known as TNTDFC, it is offering attractive interest rates on fixed deposits to senior citizens. TNTDFC is a wholly owned by Tamil Nadu Government and therefore its fixed deposits are quite safe. TNTDFC has been registered with Reserve Bank of India as a Non-Banking Finance Company. It has been mobilizing investors' funds via various attractive deposit schemes. Presently, it offers investors two deposits schemes known as Periodic Interest Payment Schemes or PIPS and Money Multiplier Scheme or MMS.

Periodic Interest Payment Schemes: Under this scheme, interest shall be paid either monthly, quarterly, or annually. The minimum amount of deposit accepted will be Rs 50,000, according to the website. Senior citizens will need to submit their age proof. It offers an attractive interest rate of 8.77% annually for the period of 60 months to senior citizens. Check rates below: 

Others				Senior Citizen
Period (Months)	Monthly (%)	Quarterly (%)	Annually (%)	Monthly (%)	Quarterly (%)	Annually (%)
24	-	7.25%	-	-	7.50%	-
36,48 &	7.75%	7.75%	7.98%	8.25%	8.25%	8.51%
60	8.00%	8.00%	8.24%	8.50%	8.50%	8.77%

Money Multiplier Scheme: If you opt for this scheme, the interest will be compounded quarterly at the appropriate rate of interest and will be paid on maturity along with principal amount. The minimum amount of deposit acceptable is Rs 50,000, as per the official website. The maximum interest rate under this scheme is 8.50% for a period of 60 months.

Check the table below for latest interest rates: 

Others			Senior Citizen
Period	Basic	Effective	Basic	Effective
(Months)	Rate	Yield p.a	Rate	Yield p.a
	p.a	(%)	p.a	(%)
	(%)		(%)
12	7	7.19	7.25	7.45
24	7.25	7.73	7.5	8.01
36	7.75	8.63	8.25	9.25
48	7.75	8.99	8.25	9.66
60	8	9.72	8.5	10.46

Shriram Transport Finance Fixed Deposit

Shriram Transport Finance Company gives the highest interest rate for Fixed deposit. Investors can earn up to 8.75% interest rates. Senior Citizens can enjoy higher returns including 0.50% and above the normal interest rates. You can earn maximum returns up to 9.73% effective yield.

It is worth noting that that Shriram Transport Finance Company has obtained highest safety rating of "(ICRA)AA+ stable from ICRA and IND AA+/Stable from India Ratings and Research. It presently offers the highest interest rate of 8.75% to senior citizens on fixed deposits maturing in a period of 60 months under the non-cumulative category. It offers a maximum interest rate of 8.25% to general citizens.

According to its website, "Additional interest of 0.50% p.a. will be paid for Senior citizens (Completed age 60 years on the date of deposit/renewal)".
Check the table below for more details on interest rates:

Period	Non Cumulative Deposit				Cumulative Deposit
Months	Monthly %	Quarterly %	Half yearly %	Yearly %	Effective yield %	Maturity value
	p.a	p.a	p.a	p.a	p.a	for Rs 5,000/-
12	6.54	6.58	6.64	6.75	6.75	5335
15	7.01	7.06	7.12	7.25	7.31	5455
24	7.01	7.06	7.12	7.25	7.51	5750
30	7.72	7.77	7.85	8	8.49	6060
36	7.72	7.77	7.85	8	8.66	6300
45	7.86	7.92	8	8.15	9.12	6710
48	7.86	7.92	8	8.15	9.21	6840
60	7.95	8.01	8.09	8.25	9.73	7430

 

Utkarsh Small Finance Bank

The bank updated its interest rates on August 12, 2022. The bank is now offering a highest interest rate of 8.25% to senior citizens for deposits maturing in 700 days up to 5 years. The minimum interest rate begins from 4.75% for senior citizens for deposits maturing in 7 days to 45 days.

Senior citizens can fetch an interest rate of 7.90% for deposits maturing in 365 days to 699 days. It is worth mentioning that these interest rates are applicable for deposits less than Rs 2 crore.