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3 Banks Giving Returns Up To 7.5% On Fixed Deposits For Senior Citizens

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A Fixed Deposit is where you deposit a lump amount of money for a set period of time at a fixed interest rate. You will receive the amount you deposited with interest payments at the end of the term. Fixed deposits are considered as the most favoured investment vehicle for both short-term and long-term goals. They are a secure investment that fetch higher returns than a standard savings account, tax benefits on 5-year deposits as well as an ease of opening an account online. Rate of interest on FDs are fixed when you open the account unlike market-based investments which fluctuate over time, and the rate is determined by the period of time you choose to keep it open which generally starts from 7 days to 10 years. And if interest rates drop in the future, you'll always get the interest rate you settled on when you opened it. The interest rate and type of deposit you select will determine your return on an FD. You can choose either a monthly or quarterly interest payout option or reinvestment, which gives you the advantage of compounding. But since the last year as the bank FD rates have fallen drastically, checking interest rates of FD before investing in it has become important to get the best deal. When most banks offer FD interest rates of around 5% to 6% approx, there are three banks that are currently offering senior citizens with higher interest rates of up to 7.5 percent.

 

DCB Bank

The fixed deposit interest rates at DCB Bank have been revised and are effective as of February 5, 2021. The new rate of interest is 4.25 percent for a term of 7-14 days, 4.80 percent for 15-45 days, 4.75 percent for 46-90 days, 5.50 percent for 91 days to 6 months, and 5.95 percent for 6-12 months. Senior citizens will receive an additional 0.50 percent interest rate on their deposits for the duration of their deposit.

TenureSenior Citizen FD Rates
7 days to 14 days 4.75%
15 days to 45 days 5.30%
46 days to 90 days 5.25%
91 days to less than 6 months 6.00%
6 months to less than 12 months 6.45%
12 months to less than 15 months 6.55%
15 months to less than 18 months 6.85%
18 months to less than 700 days 7.00%
700 days 7.20%
More than 700 days to less than 36 months 7.00%
36 months 7.25%
More than 36 months to 60 months 7.25%
Source: Bank Website

Yes Bank
 

Yes Bank

Fixed deposit schemes are available from Yes Bank, with periods ranging from seven days to ten years. With effect from February 8, 2021, the bank has revised interest rates on its FD. Yes Bank is currently offering the general public an interest rate of 3.50 percent to 6.75 percent. Senior citizen depositors will get a 50 basis point higher on their deposits across all tenors. However, for tenors of three years and more, the bank is providing 75 basis points (0.75%) additional rates to the senior citizens opposed to the general public.

TenureSenior Citizen FD Rates
7 to 14 days 4.00%
15 to 45 days 4.50%
46 to 90 days 5.00%
3 months to less than 6 months 5.50%
6 months to less than 9 months 6.00%
9 months to less than 1 Year 6.25%
1 years to less than 2 years 6.75%
2 years to less than 3 years 7.00%
3 Years to less than equal 10 years 7.50%
Source: Bank Website

IndusInd Bank

As of April 26th, 2021, the interest rate on IndusInd bank's term deposits has been revised. And after the most recent update, IndusInd Bank currently offers interest rates to the general public ranging from 2.75 percent to 6.5 percent. Senior citizens, on the other hand, will continue to get a 0.50 percent additional benefit on their deposits. Senior citizens will get interest rates ranging from 3.25 percent to 7% on deposits maturing in 7 days to 5 years.

TenureSenior Citizen FD Rates in %
7 days to 14 days 3.25
15 days to 30 days 3.25
31 days to 45 days 3.50
46 days to 60 days 4.00
61 days to 90 days 4.25
91 days to 120 days 4.50
121 days to 180 days 5.00
181 days to 210 days 5.50
211 days to 269 days 5.75
270 days or 354 days 6.00
355 days or 364 days 6.50
1 Year to below 1 Year 6 Months 7.00
1 Year 6 Months to below 1 Year 7 Months 7.00
1 Year 7 Months to below 2 Years 7.00
2 years to below 2 years 6 Months 7.00
2 years 6 Months to below 2 years 9 Months 7.00
2 years 9 Months to below 3 years 7.00
3 years to below 61 months 7.00
61 months and above 6.75
Indus Tax Saver Scheme (5 years) 7.00
Source: Bank Website

Should senior citizens invest?

key factors of fixed deposits