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The latest repo rate rise by the RBI to 4.90 per cent has spurred many debt investors to fall back in love with fixed deposits since banks are set to raise interest rates further on deposit products in the near future. It is a very good time to book fixed deposits for investors who have a low-risk appetite and are looking for fixed income to create wealth. However, one thing to keep in mind is that it is better to look for short term fixed deposits (FDs) because historically, whenever interest rates rise in the economy, banks raise deposit rates on short term fixed deposits and later on long term deposits. The rationale behind this is that if you book fixed deposits for the long term and interest rates rise in the future, you will be penalised if you make a premature withdrawal to book fresh FDs at higher interest rates. So, in the current environment, it is best to book short to mid-term deposits, and we have identified seven private sector banks that are paying senior citizens 6 to 7 per cent returns on short-term fixed deposits of one to two years.
On June 8, 2022, the bank revised fixed deposit interest rates, and as a consequence of the change on resident term deposits of less than ₹2 Cr maturing in 1 year to 2 years, elderly persons would now get an interest rate of 6.75 per cent. The bank provides an interest rate of 6.75 per cent on deposits of 12 months to less than 15 months, a rate of 7.15 per cent on deposits of 15 months, and a rate of 6.75 per cent on deposits of 15 months 1 day to less than 24 months for elderly people.
The bank revised the interest rate on fixed deposits on May 21, 2022, and as a result of the modification, the bank is now giving senior citizens an interest rate ranging from 6.50 per cent to 7 per cent on deposits of 1 to 2 years. The bank offers an interest rate of 6.50 per cent on deposits of 12 months, 6.25 per cent on deposits of more than 12 months to less than 15 months, 6.60 per cent on deposits of 15 months to less than 18 months, 7.00 per cent on deposits of 18 months to less than 700 days, and 7.00 per cent on deposits of more than 700 days on resident term deposits of less than ₹2 Cr.
Bandhan Bank revised its fixed deposit interest rates on May 4, 2022, and as a consequence, elderly folks can now earn 6.50 per cent on deposits of one to two years. The bank provides senior people with an interest rate of 6.50 per cent on resident term deposits maturing in 1 year to 18 months and above 18 months to less than 2 years.
The bank increased the interest rate on fixed deposits on May 23, 2022, and elderly persons can now earn over 6 per cent on deposits of one to two years. IDFC First Bank provides elderly persons with an interest rate of 6.50 per cent on resident term deposits and recurring deposits of less than ₹2 Cr maturing in 1 to 2 years.
IndusInd Bank revised its interest rates on fixed deposits of less than ₹2 crore on June 1st, 2022. Senior citizens will receive a 6.50 per cent interest rate on resident term deposits 1 year to below 2 years, and a 7 per cent interest rate on deposits 2 years to below 2 years 6 months.
Yes Bank revised its interest rates on fixed deposits of less than ₹2 crore on June 6, 2022. Following the modification, the bank now provides senior citizens with an interest rate of 6.25 per cent on one year of deposits and 6.50 per cent on deposits maturing in one year, one day, and three years.
The bank updated its fixed deposit interest rates on May 6, 2022, and now provides senior citizens with an interest rate of 5.90 per cent to 6.10 per cent on deposits of one to two years. The bank provides a 5.90 per cent interest rate on fixed deposits of 365 days to 389 days, a 6.00 per cent interest rate on deposits of 390 days (12 months 25 days) to less than 23 months, and a 6.10 per cent interest rate for senior citizens on deposits of 23 months to less than 2 years.
Source: Interest rates have been taken from the official websites of banks.