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:

Tenure Senior citizen interest rates Annualised Yield (%)
7 − 14 days 4.00% 4.00%
15 − 60 days 4.75% 4.75%
61 − 90 days 6.00% 6.00%
91 − 180 days 6.50% 6.55%
181 − 364 days 7.00% 7.17%
1 year (365 days) 7.40% 7.61%
> 1 year − 2 years 7.50% 7.71%
> 2 year − 3 years 8.00% 8.24%
> 3 year − < 5 year 7.50% 7.71%
5 years (1825 days) 7.50% 7.71%
> 5 year − 10 year 7.00% 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:

Period Senior Citizen Rate (Per Annum) Annualised Yield (%)
7 days to 14 days 4.50% 4.50%
15 days to 45 days 4.50% 4.50%
46 days to 90 days 5.50% 5.50%
91 days to 6 months 6.00% 6.00%
Above 6 months to 9 months 6.75% 6.92%
Above 9 months to less than 1 Year 7.00% 7.19%
1 Year to 2 years 7.25% 7.45%
Above 2 Years to 3 Years 7.65% 7.87%
Above 3 Years to less than 5 Years 7.75% 7.98%
5 Years 8.00% 8.24%
Above 5 years to 10 years 7.50% 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:

Tenure Senior citizen interest rates
7 days to 45 days 4.00%
46 days to 90 days 4.20%
91 days to 180 days 4.60%
180 days to 364 days 5.80%
12 months to 15 months 7.00%
15 months 1 day to 18 months 7.00%
18 months 1 day to 21 months 7.30%
21 months 1 day to 24 months 7.30%
24 months 1 day to 30 months 7.35%
30 months 1 day to 36 months 7.40%
36 months 1 day to 42 months 7.50%
42 months 1 day to 48 days 7.00%
48 months 1 day to 59 months 7.00%
59 months 1 day to 66 months 6.50%
66 months 1 day to 84 months 6.00%

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:

Tenure Senior citizen interest rates
7 - 14 days 4.10%
15 - 29 days 4.10%
30 - 45 days 4.25%
46 - 62 days 4.75%
63 - 90 days 5.75%
91 - 120 days 6.10%
121 - 180 days 6.10%
181 - 210 days 6.25%
211 - 270 days 6.25%
271 - 364 days 6.70%
1 year to 18 months 7.25%
18 months 1 day to 2 years 7.25%
2 years 1 day to 887 days 7.50%
888 days 7.50%
889 days to 3 years 7.50%
3 years 1 day to 4 years 7.25%
4 years 1 day to 5 years 7.25%
5 years 1 day to 10 years 7.25%

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:

Tenure Senior citizen interest rates
7 to 45 days 3.50%
46 to 90 days 3.75%
91 to 180 days 4.50%
181 to 364 days 6.50%
365 to 699 days 7.25%
700 days 7.50%
701 to 3,652 days 7.25%

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:

Tenure Senior citizen interest rates Interest Rates (Annualized)
7 Days to 1 Month 15 Days 4.25% -
1 Month 16 Days to 3 Months 4.75% -
3 Months 1 Day to 6 Months 5.50% 5.61%
6 Months 1 Day to 12 Months 6.00% 6.14%
12 Months 1 Day to 15 Months 7.10% 7.29%
15 Months 1 Day to 24 Months 7.00% 7.19%
24 Months 1 Day to 36 Months 7.25% 7.45%
36 Months 1 Day to 120 Months 7.00% 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:

Tenure Senior citizen interest rates
15 Days to 30 Days 4.25%
31 Days to 45 Days 4.25%
46 Days to 89 Days 4.75%
90 Days to 179 Days 5.50%
180 Days to less than 1 Year 6.00%
1 Year and up to 10 Years 6.75%
400 Days 6.90%
900 Days 7.05%

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