For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

7 Fixed Deposits That Offer Upto 8% Interest To Senior Citizens

|

The free fall in interest rates was only accelerated by the COVID-19 pandemic. The Reserve Bank of India (RBI) lowered repo rates to push growth in the economy by infusing liquidity. As an effect, interest rates on fixed deposits, one of the main sources of income for many senior citizens in the country, was also impacted.

 

FDs are preferred by individuals in their retirement years as it provides guaranteed income and safety.

Being a favourite among senior citizens, banks also offer higher rates to them.

7 Fixed Deposits That Offer Upto 8% Interest To Senior Citizens

While large commercial banks are often preferred for such long term deposits, senior citizens can also consider small finance banks for higher interest rates. These were permitted to be set up back in the 90s by the government, with RBI guidelines. The primary function of these banks is to cater to underserved and unserved sections of the population, primarily in the rural and semi-urban areas of the country. Some of the popular small finance banks are also present in urban areas.

These belong to the private sector and often offer interest higher than commercial banks to attract customers.

 

Small finance banks are required to follow all prudential norms and regulations of RBI as applicable to existing commercial banks including the requirement of maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).

Here are top 7 small finance banks in India with highest interest rates:

1. Jana Small Finance Bank

Highest interest rate offered: 8%

Senior citizen interest rates on FDs worth less than Rs 2 crore with effect from 11 August 2020:

TenureSenior citizen interest ratesAnnualised Yield (%)
7 − 14 days4.00%4.00%
15 − 60 days4.75%4.75%
61 − 90 days6.00%6.00%
91 − 180 days6.50%6.55%
181 − 364 days7.00%7.17%
1 year (365 days)7.40%7.61%
> 1 year − 2 years7.50%7.71%
> 2 year − 3 years8.00%8.24%
> 3 year − 7.50%7.71%
5 years (1825 days)7.50%7.71%
> 5 year − 10 year7.00%7.19%

Interest Rate (Annualised) = [(Total Maturity Pay out/original Principal) - 1] / Tenure in years

2. Suryoday Small Finance Bank

Highest interest rate offered: 8%

Senior citizen interest rates on FDs worth less than Rs 2 crore with effect from 15 September 2020:

PeriodSenior Citizen Rate (Per Annum)Annualised Yield (%)
7 days to 14 days4.50%4.50%
15 days to 45 days4.50%4.50%
46 days to 90 days5.50%5.50%
91 days to 6 months6.00%6.00%
Above 6 months to 9 months6.75%6.92%
Above 9 months to less than 1 Year7.00%7.19%
1 Year to 2 years7.25%7.45%
Above 2 Years to 3 Years7.65%7.87%
Above 3 Years to less than 5 Years7.75%7.98%
5 Years8.00%8.24%
Above 5 years to 10 years7.50%7.71%

Annualised yield is calculated on the basis of quarterly compounding for 12 months period.

3. Fincare Small Finance Bank

Highest interest rate offered: 7.5%

Senior citizen interest rates on FDs worth less than Rs 2 crore with effect from 5 October 2020:

TenureSenior citizen interest rates
7 days to 45 days4.00%
46 days to 90 days4.20%
91 days to 180 days4.60%
180 days to 364 days5.80%
12 months to 15 months7.00%
15 months 1 day to 18 months7.00%
18 months 1 day to 21 months7.30%
21 months 1 day to 24 months7.30%
24 months 1 day to 30 months7.35%
30 months 1 day to 36 months7.40%
36 months 1 day to 42 months7.50%
42 months 1 day to 48 days7.00%
48 months 1 day to 59 months7.00%
59 months 1 day to 66 months6.50%
66 months 1 day to 84 months6.00%

4. Equitas Small Finance Bank

Highest interest rate offered: 7.5%

Senior citizen interest rates on FDs worth less than Rs 2 crore with effect from 5 November 2020:

TenureSenior citizen interest rates
7 - 14 days4.10%
15 - 29 days4.10%
30 - 45 days4.25%
46 - 62 days4.75%
63 - 90 days5.75%
91 - 120 days6.10%
121 - 180 days6.10%
181 - 210 days6.25%
211 - 270 days6.25%
271 - 364 days6.70%
1 year to 18 months7.25%
18 months 1 day to 2 years7.25%
2 years 1 day to 887 days7.50%
888 days7.50%
889 days to 3 years7.50%
3 years 1 day to 4 years7.25%
4 years 1 day to 5 years7.25%
5 years 1 day to 10 years7.25%

5. Utkarsh Small Finance Bank

Highest interest rate offered: 7.50%

Senior citizen interest rates on FDs worth less than Rs 2 crore with effect from 19 October 2020:

TenureSenior citizen interest rates
7 to 45 days3.50%
46 to 90 days3.75%
91 to 180 days4.50%
181 to 364 days6.50%
365 to 699 days7.25%
700 days7.50%
701 to 3,652 days7.25%

6. AU Small Finance Bank

Highest interest rate offered: 7.25%

Senior citizen interest rates on FDs worth less than Rs 2 crore with effect from 14 August 2020:

TenureSenior citizen interest ratesInterest Rates (Annualized)
7 Days to 1 Month 15 Days4.25%-
1 Month 16 Days to 3 Months4.75%-
3 Months 1 Day to 6 Months5.50%5.61%
6 Months 1 Day to 12 Months6.00%6.14%
12 Months 1 Day to 15 Months7.10%7.29%
15 Months 1 Day to 24 Months7.00%7.19%
24 Months 1 Day to 36 Months7.25%7.45%
36 Months 1 Day to 120 Months7.00%7.19%

7. Capital Small Finance Bank

Highest interest rate offered: 7.05%

Senior citizen interest rates on FDs worth less than Rs 2 crore with effect from 6 October 2020:

TenureSenior citizen interest rates
15 Days to 30 Days4.25%
31 Days to 45 Days4.25%
46 Days to 89 Days4.75%
90 Days to 179 Days5.50%
180 Days to less than 1 Year6.00%
1 Year and up to 10 Years6.75%
400 Days6.90%
900 Days7.05%

Disclaimer

The article is purely informational and is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.

Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X