Senior citizens FD rates: From private, government to small finance banks, interest rates on fixed deposits, popularly known as FDs, have been raised by banks across investment tenures after six consecutive repo rate hikes by the Reserve Bank of India (RBI) to tame rising inflation.
SFBs – the financial institutions that offer banking services to the unserved and unbanked regions of India – are offering an interest of as high as 9.50 per cent on FDs to lure depositors, data compiled by BankBazaar shows.
Below are six top small finance banks where you can invest in:
1. Unity Small Finance Bank: The bank gives interest rates of 9.00 per cent to the general public and 9.50 per cent to senior citizens on FDs of 1001 days.
2. Jana Small Finance Bank: The bank gives interest rates of 8.10 per cent to the general public and 8.80 per cent to senior citizens on FDs of over two to three years.
3 Suryoday Small Finance Bank: The bank gives interest rates of 8.51 per cent to the general public and 8.76 per cent to senior citizens on FDs of 999 days.
4 Ujjivan Small Finance Bank: The bank gives interest rates of 8.00 per cent to the general public and 8.75 per cent to senior citizens on FDs of 560 days.
5 Utkarsh Small Finance Bank: The bank gives interest rates of 8.00 per cent to the general public and 8.75 per cent to senior citizens on FDs of 700 days.
6. North East Small Finance Bank: The bank gives interest rates of 8.00 per cent to the general public and 8.75 per cent to senior citizens on FDs of 1111 days.
The SFBs are registered under the Companies Act 2013 as a public entity. The key reason behind the introduction of these financial institutions was to have an alternative player in the market and provide basic financial services.
Senior citizens generally invest a part of their savings in FDs, which offer liquidity and ensure interest income periodically. Besides, the savings are also useful to build an emergency corpus.
