Usually, banks give higher interest rates on FDs to senior citizens compared to regular customers. Even today, many senior citizens in India prefer to invest in FDs. FDs are one of the oldest and most trusted investment options in the country.
However, the interest rates on FDs have gone down after the fall in the repo rate. The Reserve Bank of India has reduced the main interest rate by 1 per cent so far this year. Let us now find out which banks are giving the highest interest rates on FDs for senior citizens.
Interest Rate on 2-Year FD for Senior Citizens
Bandhan Bank is giving the highest interest rate of 7.9 percent on a 2-year fixed deposit for senior citizens. If you invest ₹10,000 in this fixed deposit, you will get ₹11,693 when it ends. Other banks are also giving good interest. IndusInd Bank is giving 7.8 percent. RBL Bank is giving 7.6 percent. J&K Bank and Yes Bank are both giving 7.5 percent.
Interest Rate on 3-Year FD for Senior Citizens
Yes Bank is giving the highest interest rate of 7.9 percent on a 3-year fixed deposit for senior citizens. If you invest ₹10,000, you will get ₹12,626 at the end. Bandhan Bank is giving 7.8 percent. RBL Bank is giving 7.6 percent. IndusInd Bank is giving 7.5 percent. DCB Bank is giving 7.3 percent on a 3-year fixed deposit.
Interest Rate on 5-Year FD for Senior Citizens
RBL Bank is giving the highest interest rate of 7.5 percent on a 5-year fixed deposit for senior citizens. If you invest ₹10,000 in this fixed deposit, you will get ₹14,499 when it ends. Yes Bank is also giving 7.5 percent. IndusInd Bank is giving 7.4 percent. PNB and Axis Bank are giving 7.3 percent interest.
Simple Summary of FD Interest for Senior Citizens
Bandhan Bank is giving 7.8 percent on a 1-year FD. For 2 years, Bandhan Bank is giving 7.9 percent. On a 3-year FD, Yes Bank is giving the highest rate of 7.9 percent. For 5 years, RBL Bank is giving the top rate of 7.5 percent. Many senior citizens still choose fixed deposits because they are safe and give fixed returns.