Utilizing a fixed deposit (FD) account can greatly enhance your savings potential. By opting for an FD account, you have the opportunity to deposit a lump sum for a predetermined period (tenure) at a selected interest rate. Upon reaching maturity, your invested amount is returned to you along with accrued compound interest. In India, this method is widely acknowledged as one of the most effective means of saving money, offering ease of initiation, favourable returns, and a secure investment avenue.
Senior citizens often enjoy an additional interest rate advantage, typically around 50 basis points, from banks on their FD accounts. Certain banks extend interest rates exceeding nine per cent to senior citizens too. Moreover, even smaller banks extend competitive interest rates to senior citizens. Let's delve into these offerings in more detail.
Equitas Small Finance Bank
The bank has made adjustments to its FD interest rates, offering a potential increase of up to nine per cent for senior citizens. These revised rates will be applicable exclusively to FDs valued at less than ₹2 crore. Notably, for FDs reaching maturity within the range of 445 days and 18 months, an interest rate of 8.2 per cent will be provided. Meanwhile, FDs maturing in 444 days will enjoy a higher interest rate of 8.5 per cent. These new rates came into effect starting from August 21, 2023.
ESAF Small Finance Bank
Senior citizens are being offered a substantial interest rate range of approximately 4.50 per cent to 9 per cent on fixed deposits (FDs) spanning a duration of two to three years by the bank. These revised rates came into effect on April 14, 2023.
Fincare Small Finance Bank
For tenures of up to 84 months, senior citizens can benefit from interest rates spanning from 3.60 per cent to 9.11 per cent. Opting for a deposit period of a minimum of 5 years guarantees an attractive interest rate of 8.60 per cent from the bank. Moreover, for deposits maturing in 750 days, an even higher interest rate of 9.11 per cent is provided. These revised rates took effect on July 26, 2023.
Jana Small Finance Bank
An approximate interest rate of nine per cent is being extended by the bank to FDs that reach maturity in 1095 days, with these rates taking effect from August 15.
North East Small Finance Bank
An extra interest rate of 0.50 per cent is offered by the bank to senior citizens, with the interest rate reaching a maximum of 8.50 per cent for a tenure of 10 years. Moreover, a competitive 9 per cent interest rate is available for FDs maturing in 555 days, and these rates have been in effect since June 6, 2023.
Suryoday Small Finance Bank
Starting from August 7, 2023, the recently revised rates come into play. Specifically designed for senior citizens, these rates encompass a spectrum between 4.50 per cent and 9.10 per cent for deposits below ₹2 crore, spanning maturities ranging from a week to a decade.
Unity Small Finance Bank
Interest rates as high as 9.50 per cent are being offered by the bank for specific tenure periods. Senior citizens, on the other hand, can avail of rates of up to 9.25 per cent for FDs spanning from six months to 201 days, and a competitive 9.5 per cent for FDs with a tenure of 1001 days.