IDFC and other private banks offering up to 7 percent interest for senior citizens on three-year FDs; check list here
The Reserve Bank of India (RBI) has maintained the key repo rate unchanged at a 4 percent low, following which many banks have reduced their interest rates on FD
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Investing in fixed income instruments like fixed deposits is a safe option for senior citizens as well as young customers. These fixed-income instruments come under the debt investment category.
Fixed deposit investment offers a regular income stream that depends on the deposit amount and maturity time chosen. Because of low-interest rates on fixed deposits, it is better to invest for a short-term period.
The Reserve Bank of India (RBI) has maintained the key repo rate unchanged at a 4 percent low, following which many banks have reduced their interest rates on FDs.
However, here are a few private banks that offer interest rates on three-year FDs of up to 7 percent for senior citizens:
DCB Bank: Formally known as Development Credit Bank, it offers 6.45 percent interest for senior citizens in three-year FDs. So, if Rs 1 lakh is invested in the respective bank then that grows to Rs 1.21 lakh in three years. Furthermore, the minimum investment required by senior citizens is Rs 10,000.
IDFC: This bank is known as Infrastructure Development Finance Company and it is the first bank that offers 6.25 percent interest for senior citizens in three-year FDs. So, if Rs 1 lakh is invested, it grows to Rs 1.20 lakh in three years.
Yes Bank: This bank offers 7 percent interest for senior citizens on three-year FDs. Yes bank offers the best interest rates when compared to other private banks. So, if a sum of Rs 1 lakh is invested, then it grows to Rs 1.23 lakh in three years.
RBL Bank: Formerly known as Ratnakar Bank, this private sector bank offers 6.80 percent interest for senior citizens in three-year FDs. So, if Rs 1 lakh is invested by an individual, it grows to Rs 1.22 lakh in three years.
IndusInd Bank: This bank offers 6.50 percent interest for senior citizens in three-year Fixed Deposits. However, the minimum investment required for this is Rs 10,000. So, if Rs 1 lakh is invested, it grows to Rs 1.21 lakh in three years.