After the Reserve Bank of India (RBI) cut the repo rate three times in a row, on one hand, the banks have made loans cheaper, on the other hand, they have also reduced the interest on fixed deposits (FD). The reduction in interest on FD has affected senior citizens the most, a large part of whose income depends on the interest on FD.
However, it is not that the option of getting higher returns on FD has ended. Even now many banks are giving excellent interest of up to 8.8% on FD to senior citizens. Let us know about those banks, where you can earn more while keeping your savings safe.
High Interest Rates for Senior Citizens
Small Finance Banks (SFBs) often offer higher interest rates than traditional banks because they need to grow their deposits. Here are some banks that are offering attractive FD interest rates for senior citizens:
1. Suryodaya Small Finance Bank
Suryodaya Small Finance Bank is offering the highest interest rate of 8.8% on its three-year term FD for senior citizens. This rate is an excellent option for senior citizens who want to invest for high returns and a relatively short period.
2. Utkarsh Small Finance Bank
Utkarsh Small Finance Bank is offering an interest rate of 8.75% on a three-year term FD for senior citizens. This is also a very competitive rate that can help you grow your investment.
3. Unity Small Finance Bank
Unity Small Finance Bank is offering senior citizens an interest rate of up to 8.5% on FDs for a period of 3 years. This rate is also one of the best rates available in the market.
4. Slice Small Finance Bank
Slice Small Finance Bank is offering an interest rate of up to 8.25% on FDs for a period of three years. This can be a good option for those who want to keep their savings safe in a reliable bank.
5. Jana Small Finance Bank
Jana Small Finance Bank is offering senior citizens an interest rate of up to 8.25% on FDs for a period of three years. This bank is also known for its attractive rates.
Keep these things in mind before investing
Before making an FD in a Small Finance Bank (SFB), it is very important to keep some important things in mind so that your investment is safe and you do not have to face any kind of problem:
Check the Credibility and Financial Position of the Bank
Before making an FD in any Small Finance Bank, first, check the credibility and financial position of the bank. You can see the annual report, ratings, and reputation of the bank in the market. A bank with a strong financial position keeps your money more secure.
Ensure DICGC Insurance Coverage
Always opt for FDs that are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation). The deposits are insured under the Deposit Insurance and Credit Guarantee Corporation. It provides uniform insurance coverage of up to ₹5 lakh to every depositor in every bank. This insurance guarantees a safety net for small depositors. However, investors should be cautious and evaluate specific parameters to ensure the financial health of the bank before investing.
Tenure, Interest Rate, and Premature Withdrawal Penalty of FD
Get complete information about the tenure, interest rate, and penalty for premature withdrawal of FD. Some banks charge heavy charges for premature withdrawal, which can affect your returns. Choose the right tenure as per your financial needs and ensure that the interest rates are in line with your goals.