FD rates up to 9.5%: These 8 banks offer over 9% interest rate on fixed deposits for senior citizens Here's a look at small finance banks that provide higher interest rates on senior citizen fixed deposits
The fixed deposit (FD) is a popular investment option among many senior citizens. This is because of the safety of principal of the investment, and the option for periodic interest payout, thus ensuring a steady income stream during retirement. Added to this, senior citizens are offered a higher rate of interest rate on FDs compared to those offered on general citizen FDs.Also read: FD interest rate up to 9.25%: These 3 banks have revised fixed deposit rates in March 2024
Here's a look at small finance banks that provide higher interest rates on senior citizen fixed deposits.
Senior Citizen Fixed Deposit RatesBank NameInterest Rates (p.a.)Highest slab1-year tenure (%)3-year tenure (%)5-year tenure (%)%TenureSMALL FINANCE BANKSAU Small Finance Bank8.50 18 months7.25 8.00 7.75 Equitas Small Finance Bank9.00 444 days8.70 8.50 7.75 ESAF Small Finance Bank8.75 2 years to less than 3 years6.50 7.25 6.75 Fincare Small Finance Bank9.21750 days8.258.718.60Jana Small Finance Bank9.00 365 days9.00 7.75 7.75 NorthEast Small Finance Bank9.25 555 days; 1111 days8.50 8.75 7.00 Suryoday Small Finance Bank9.252 years and 1 month7.35 9.108.75Ujjivan Small Finance Bank9.00 15 months8.75 7.70 7.70 Unity Small Finance Bank9.50 1001 days8.35 8.65 8.65 Utkarsh Small Finance Bank9.10 2 years to 3 years8.60 9.10 8.10 Source: Paisabazaar.com
Interest rates as of 20th March 2024
Also read: Income tax saving ideas: With 8.2% interest, Senior Citizen Savings Scheme (SCSS) is a better bet to save tax than tax-saver FDs
List of Scheduled Small Finance Banks
Au Small Finance Bank LimitedCapital Small Finance Bank LimitedEquitas Small Finance Bank LimitedSuryoday Small Finance Bank LimitedUjjivan Small Finance Bank LimitedUtkarsh Small Finance Bank LimitedESAF Small Finance Bank LimitedFincare Small Finance Bank LimitedJana Small Finance Bank LimitedNorth East Small Finance Bank Limited Shivalik Small Finance Bank LimitedUnity Small Finance Bank LimitedAccording to the RBI operating guidelines for Small Finance Banks, “All RBI and BR Act provisions and RBI directions relating to minimum balance, inoperative accounts, unclaimed deposits including transfer of such deposits to the Depositors Education and Awareness Fund maintained by RBI on regular basis, nominations, cheques/drafts, etc., will be applicable to the SFBs.
Small Finance Banks can issue passbooks for the deposit accounts;SFBs should give written/printed proof of the first time deposit, in addition to the electronic confirmation of the deposit;SFBs should send statement of accounts once in six months to the registered address free of cost, if passbooks have not been issued;SFBs may provide statement of account in paper form on request on chargeable basis or otherwise, if passbooks have not been issued;SFBs may provide account information through multiple user friendly modes such as SMS and/or internet banking; andSFBs should provide electronic confirmation through SMS/e-mail/printed proof for each account transaction.(Owing to their business model, small finance banks cannot be kept on par with other scheduled commercial banks. Hence FDs from small finance banks are also not comparable in terms of risk profile to full-service banks. However, when it comes to insurance, do keep in mind that deposits in small finance banks are also insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) to the tune of Rs 5 lakh. Most of the experts advise layman retail investors to keep their exposure limited in FDs of small finance banks so that it is well within DICGC cover of Rs 5 lakh including principal and interest.)
This story originally appeared on: India Times - Author:Faqs of Insurances
