Opening a Fixed Deposit in the name of senior citizens is always advantageous since they are entitled to get higher interest rates from banks. FDs for senior citizens often fetch rates that are 50 to 75 basis points higher than that offered to citizens under 60 years. Let’s check what these banks are offering for senior citizen FDs.
Yes Bank
This private sector bank is offering interest rates that are higher than 8% in FDs with 5 maturity tenures. These are 1 year 1 day to less than 18 months (8%), 18 months (8.5%), 18 months 1 day to less than 24 months (8.25%), 36 months to less than 60 months (8%) and 60 months (8%). Thus, the highest rate offered by this bank is 8.50%. The minimum deposit is Rs 10,000.
IndusInd Bank
This private sector bank offers interest rates of 8% for FDs carrying four maturity periods. These are 1 Year to below 1 Year 3 months (8.25%), 1 Year 3 months to below 1 Year 4 months (8.25%), 1 Year 4 months to below 1 Year 6 months (8.25%) and 1 Year 6 Months up to 2 Years (8.25%). These rates are available from July 3, 2024. This bank’s website says that premature withdrawals are allowed in FDs. The minimum investment is of Rs 10,000.
IDFC First Bank
This bank offers interest rates of 8% or more in FDs with three maturity periods. These are 500 days (8.25%), 501 days to 548 days (8%) and 549 days to 2 years (8%). Therefore, an FD for 500 days fetches the highest interest for senior citizens. The minimum amount that one can deposit in an FD is Rs 10,000.
Bandhan Bank
This Kolkata-based private sector bank offers an interest rate of more than 8% in an FD of only one tenure. It is 1 year 9 months. The interest rate is 8.50%. Senior citizen rates are only applicable to resident Indians and do not apply to NRIs, according to the website of the bank.
Kotak Mahindra Bank
This private sector bank comes close to offering 8% interest rate for senior citizens but doesn’t quite make it. It offers 7.90% on FDs with tenure between 390 days and 391 days to less than 23 months. One can open an FD with a minimum deposit of Rs 5,000 in this bank.
Fixed deposits are preferred investment instruments for many for their safety and predictability. All banks have higher interest rates for senior citizens. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
