A secure investment. The first thing that comes to mind is a fixed deposit. Stable interest rates and low risk are the two reasons why FDs remain the best investment option for the general public. Several banks across the country changed their interest rates in the second week of December. However, FD rates in major banks have remained largely unchanged. But smaller and private banks are currently offering the highest returns. The interest rates are particularly attractive for senior citizens.
According to recent data from Paisabazaar.com, small finance banks are at the top when it comes to senior citizen FDs. For specific tenures, these banks are offering interest rates ranging from 7.75 percent to 8.10 percent. Among them, ESAF Small Finance Bank is offering the highest interest rate of 8.10 percent on a 444-day deposit. Jana Small Finance Bank, Suryoday, and Utkarsh Small Finance Banks are offering a maximum rate of 8 percent. Equitas and Shivalik Small Finance Banks are also offering interest rates up to 7.80 percent. These rates are undoubtedly attractive for retirees seeking regular income, although experts advise considering the financial stability of the bank, especially for long-term investments.
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Public Sector Banks Focus on Safety
Private sector banks also offer opportunities for good returns with relative stability. Yes Bank is offering the highest interest rate of up to 7.75 percent for tenures of three to five years. Bandhan Bank and RBL Bank offer rates up to 7.70 percent. ICICI, Kotak Mahindra, and Axis Bank offer interest rates between 7.10 and 7.35 percent for specific tenures. Some banks are also offering additional interest benefits for those aged over 80 years.
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Although interest rates in public sector banks are comparatively lower, many prioritize security. In this sector, the maximum interest rate is between 7.10 and 7.20 percent. Bank of India, Indian Overseas Bank, and Punjab & Sind Bank are offering up to 7.20 percent interest on specific schemes. SBI’s ‘Amrit Kalash’ scheme offers senior citizens 7.10 percent interest for 444 days.
Interest rates on fixed deposits in foreign banks are still comparatively low. Deutsche Bank offers a maximum of 7 percent, Standard Chartered 7.10 percent, and HSBC’s rates hover around 6 percent. Therefore, considering the balance between interest and security is now most important for senior citizens when making investment decisions.