Following three consecutive repo rate cuts by the Reserve Bank of India (RBI), banks across the country have reduced interest rates on fixed deposits (FDs). This has particularly affected senior citizens, for whom FDs are a primary investment option. However, there are still some banks in the market that are offering interest rates ranging from 7.75% to 8.50% to senior citizens for a 3-year term. These rates are higher compared to those offered to general customers.
Utkarsh Small Finance Bank Offers the Highest Interest
For senior citizens seeking the highest interest rates, Utkarsh Small Finance Bank leads the way. This bank is offering an interest rate of 8.50% to senior citizens on 3-year FDs. If a senior citizen invests ₹1 lakh in an FD with this bank, they will receive approximately ₹1.26 lakh upon maturity.
Jana Small Finance Bank is Not Far Behind
Following Utkarsh, Jana Small Finance Bank offers a competitive rate. This bank provides an interest rate of 8.25% to senior citizens on 3-year FDs. This means that if you deposit ₹1 lakh with them, you can receive up to ₹1.25 lakh at maturity. The rates offered by these banks are significantly higher than those of major public and private sector banks in the country.
Suryoday Small Finance Bank Also Offers Attractive Interest
Suryoday Small Finance Bank is also offering an interest rate of 8.15% to senior citizens on 3-year FDs. Here, an FD of ₹1 lakh yields a return of approximately ₹1.24 lakh. This rate is also higher than that of many major banks currently.
Yes Bank's Offering is Also Better
Yes Bank is also included in this list. This bank offers an interest rate of 7.85% to senior citizens on 3-year FDs. If you invest ₹1 lakh in an FD with Yes Bank, this amount increases to approximately ₹1.24 lakh upon maturity.
Ujjivan and RBL Bank Also Offer 7.70% Interest
Ujjivan Small Finance Bank and RBL Bank are offering an interest rate of 7.70% to senior citizens. By investing ₹1 lakh in an FD with these banks, you can receive approximately ₹1.23 lakh upon maturity.
IndusInd Bank Offers an Interest Rate of 7.50%
IndusInd Bank is offering an interest rate of 7.50% to senior citizens on three-year FDs. Here, an FD of ₹1 lakh yields a return of up to ₹1.23 lakh upon maturity. This rate is considered slightly better than the average interest rates currently available in the market.
Status of DCB Bank, IDFC First, and JK Bank
DCB Bank, IDFC First Bank, and Jammu & Kashmir Bank are offering 3-year FD facilities to senior citizens at an interest rate of 7.25%. By investing ₹1 lakh in an FD with these banks, you can receive approximately ₹1.22 lakh upon maturity.
Return Figures Indicate the Situation
These interest rates are quite important for those who are planning safe investments through FDs. If we consider an FD of ₹1 lakh as the base, there can be a difference of approximately ₹4,000 to ₹5,000 in returns at rates ranging from 7.25% to 8.50%.
Interest Rates and Maturity Amounts of Different Banks
Bank Name Interest Rate (for Senior Citizens) Maturity Amount (on ₹1 Lakh)
Utkarsh Small Finance Bank 8.50% Approximately ₹1,26,000
Jana Small Finance Bank 8.25% Approximately ₹1,25,000
Suryoday Small Finance Bank 8.15% Approximately ₹1,24,000
Yes Bank 7.85% Approximately ₹1,24,000
Bandhan, Equitas, Unity Bank 7.75% Approximately ₹1,23,000
Ujjivan and RBL Bank 7.70% Approximately ₹1,23,000
IndusInd Bank 7.50% Approximately ₹1,23,000
DCB, IDFC First, JK Bank 7.25% Approximately ₹1,22,000
Need to Keep an Eye on FDs
Looking at the current interest rates, it is clear that small finance banks and some select private banks are offering better returns to senior citizens. However, all investors choose FDs keeping in mind the bank's credibility, credit profile, and security arrangements. But in the current circumstances, the fact has also come to the fore that smaller banks are ahead in the race to offer better returns compared to larger banks.
