More than 7% return on Fixed Deposits: These PSU banks offering highest interest rates

Deepika Chelani
Updated: 15 Dec 2022, 09:34 AM IST
TL;DR.

With the most recent hike, the repo rate has climbed to a whopping 225 bps so far in fiscal year 2023. At present, the repo rate is 6.25 percent, the highest level since August 2018. In line with RBI’s policy outcomes, several banks have been increasing their interest rates on fixed deposits significantly in the last few months and making this investment option more attractive for the investors. Let's take a comprehensive look at the public sector banks listed below, which offer the more than seven percent interest rates on FDs for senior citizens.

Union Bank of India offers 7.80 percent to senior citizens on tenure ranging from 7 days to 10 years and the interest rate on tax-saving fixed deposits is 7.20 percent p.a. for senior citizen depositors for tenures of 5 to 10 years.  

For senior citizens, the State Bank of India offers interest rates ranging between 3.50 percent to 7.25 percent for tenure between 7 days to 10 years. Any person who has completed the age of 60 years and 80 years is treated as a senior citizen and super senior citizen respectively, for obtaining this benefit of the additional interest.   

Bank of India (BOB) offers fixed deposit interest rates of 7.75 percent p.a. To elderly persons on tenures ranging from 7 days to 10 years. The interest rate on tax saving fixed deposits is 6.50 percent p.a. for senior citizen depositors.

Canara Bank offers fixed deposit interest rates of 7.50 percent p.a. to senior citizens on tenures ranging from 7 days to 10 years. 

Punjab National Bank (PNB) provides fixed deposit interest rates of 7.50% p.a. to senior citizens on tenures ranging from 7 days to 10 years and the interest rate on tax saving fixed deposits is 6.60 percent p.a. for senior citizen depositors.

Punjab & Sind Bank provides investment schemes such as fixed deposits with rewarding returns. The highest fixed deposit rate is 7.50 percent p.a. to senior citizens on tenures ranging from 7 days to 10 years and the interest rate on tax saving fixed deposits is 6.60 percent p.a. for senior citizens. 

Public sector lender Bank of Baroda (BoB) offers fixed deposit interest rates 7.25 percent p.a. to senior citizens on tenures ranging from 7 days to 10 years and the interest rate on tax saving fixed deposits is between the range of 6.75- 6.90 percent p.a. for senior citizen depositors for tenures of 5 to 10 years. Source: Official Website  

First Published: 15 Dec 2022, 08:01 AM IST