2023 kicked off on an upbeat note for conservative investors as several banks started announcing the increase in interest rate on fixed deposits.
Recently, some small finance banks are offering 9 percent and above fixed deposit interest rates while several private lenders are providing an interest rate of 7 to 8 percent. Here are two banks offering 9 percent interest rate to senior citizens.
Unity Small Finance Bank offers fixed deposit interest rates of 4.50 to 8.50 percent per annum to the general public and for senior citizens of 4.50 to 9.00 percent per annum on tenures ranging from 7 days to 10 years, while retail investors get 8.50 percent for the same terms, according to the bank website.
Moreover, for the premature withdrawal of fixed deposit, interest rate payable would be corresponding fixed deposit rate minus 1.00 percent for the tenor for which the deposit has actually run, as per the information available on the bank's official website.
Suryoday Small Finance Bank, recently revised fixed deposit interest rates of less than ₹2 crore. The small finance bank has raised its interest rates across all tenors as a result of the modification.
Currently, the bank offers fixed deposits with maturities ranging from 7 days to 10 years at interest rates for the general public of 4.00 percent to 8.51 percent and for senior citizens of 4.50 percent to 9.05 percent. The bank also provides many fixed deposit products for NRIs, such as NRO and NRE fixed deposits, according to the bank website.
The deposit insurance cover from Deposit Insurance Credit Guarantee Corporation (DICGC) insures cumulative deposits up to ₹5 lakh made by each depositor, including his/her fixed deposits, recurring deposits, savings and current, in each scheduled bank in case of the failure or merger/amalgamation of a scheduled bank.