Seniors benefit from higher-than-average FD rates because they can use them to supplement their income and take care of their basic necessities. Senior citizens can benefit from a number of additional advantages from these fixed deposit accounts. Regular interest payments could offer them a steady and secure income stream for the duration of their post-retirement years. If required, they may even borrow money against the FD.
As a senior citizen, you might be considered for special benefits and higher interest rates on fixed deposits. Many banks offer senior citizens higher interest rates on their savings accounts as an incentive to invest. These rates are typically higher than those offered to individuals who are non-seniors. Some local finance banks still give senior citizens fixed deposit interest rates of over 9%. This article provides detailed information regarding the banks that provide senior citizen FDs with interest rates higher than 9%.
Here is the List of 5 Banks That Offer Fixed Deposit Interest Rates of More Than 9% to Senior Citizens
1. Unity Small Finance Bank FD
On some fixed deposits for senior citizens with certain tenures, Unity Small Finance Bank offers interest rates of over 9%. The bank offers elderly citizens an interest rate of 9.25 per cent for FDs maturing in between 181 and 201 days. Senior citizens can earn an interest rate of 9.25% on FDs that mature in 501 days. For FDs maturing in 1001 days, seniors are eligible for a 9.5% interest rate for term lengths ranging from seven days to ten years. Since the RBI has designated Unity Small Finance Bank as a scheduled bank, its depositors are qualified for deposit insurance from the Depositor Insurance and Credit Guarantee Corporation (DICGC). The deposit insurance cover provided by DICGC, a subsidiary of the RBI, covers cumulative deposits of up to Rs 5 lakh invested by each depositor in each scheduled bank. This might include the depositor’s fixed deposits, current, savings and recurring deposits.
2. Fincare Small Finance Bank FD
For term lengths ranging from seven days to eighteen months, Fincare Small Finance Bank offers FD interest rates to senior people of 3.60-9.11% p.a. For 5-year terms, Fincare Small Finance Bank Tax Saving FDs have an interest rate of 8.60% p.a. for senior citizen depositors. For NRIs, the bank also provides a range of fixed deposit options, including NRO and NRE fixed deposits. For NRIs, the bank also provides a range of fixed deposit options, including NRO and NRE fixed deposits. Since the RBI has designated Fincare Small Finance Bank as a scheduled bank, its depositors are now qualified for deposit insurance from the Depositor Insurance and Credit Guarantee Corporation (DICGC). DICGC insures cumulative deposits up to Rs 5 lakh deposited by each depositor, including fixed deposits, savings, current, and recurring deposits, in each scheduled bank in the case of failure or merger/amalgamation.
3. Jana Small Finance Bank
On fixed deposits with certain terms in Jana Small Finance Banks, seniors can also earn an interest rate of 9%. The interest rate offered to elderly persons by Jana Small Finance Bank for FDs with maturities between 366 and 499 days is 9%. For FDs with maturities between 501 and 730 days, the small finance bank offers an interest rate of 9%. The interest rate on fixed deposits in the Jana Small Finance Bank is 9% for deposits maturing in 500 days. Since the RBI has decided that Jana Small Finance Bank is a scheduled bank, its customers can now get insurance from the Depositor Insurance and Credit Guarantee Corporation (DICGC). If a scheduled bank goes out of business or merges with another bank, the deposit insurance cover from DICGC, an RBI company, protects deposits up to Rs 5 lakh that each depositor has made in each scheduled bank. This includes fixed deposits, savings deposits, current deposits, and recurring deposits.
4. Suryoday Small Finance Bank
Seniors can obtain fixed-term deposits (FDs) at Suryoday Small Finance Bank for terms ranging from seven days to ten years at interest rates of 4.50 to 6.0% per annum. For senior citizen depositors who deposit money into 5-year Suryoday Small Finance Bank Tax Saving FDs, the interest rate is 9.60% p.a. For NRIs, the bank also provides a range of fixed deposit options, including NRO and NRE fixed deposits. Since the RBI has designated Suryoday Small Finance Bank as a scheduled bank, its depositors are qualified for deposit insurance from the Depositor Insurance and Credit Guarantee Corporation (DICGC). In case of failure or merger/amalgamation of a scheduled bank, the deposit insurance cover from the DICGC, a subsidiary of the RBI, guarantees cumulative deposits of up to Rs 5 lakh that each depositor puts in each scheduled bank, including his fixed deposit, recurring deposit, savings and current deposit.
5. North East Small Finance Bank
For term lengths ranging from 7 days to 3650 days, North East Small Finance Bank offers Fixed Deposit interest rates to the general public of 3.00–8.50% p.a. and senior citizens of 3.75–9.25% p.a. As a result of North East Small Finance Bank’s recognition by the RBI as a scheduled bank, its depositors are now qualified for deposit insurance from the Depositor Insurance and Credit Guarantee Corporation (DICGC). In the event of a scheduled bank’s failure or merger, the deposit insurance cover provided by DICGC, an RBI subsidiary, protects cumulative deposits up to Rs 5 lakh deposited by each depositor in each scheduled bank, including savings, current, fixed deposits, and recurring deposits.
The Bottom Line
People over 60 can open a Senior Citizen Fixed Deposit (FD) account. These fixed deposits are typically available for maturities of less than one year to more than five years, with interest rates ranging from 3 to 8.10%. Many banks raised interest rates on fixed deposit products in May 2023. Big PSU and private sector banks are still far from providing their senior citizen customers with 9% FD interest rates, even after several increases. Senior citizen investors can take advantage of above 9% Fixed Deposit interest rates from the small finance banks on the above list.
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