Several banks have raised their fixed deposit interest rates after the Reserve Bank of India (RBI) hiked repo rates by 140 points in the last 3 months to 5.4 per cent. The development comes as a sigh of relief to small depositors, usually retirees, who rely on interest from FD and bank deposits for their primary income.
Most senior citizens opt for fixed deposits to park their life savings for investment safety offered by these institutions. Banks offer 30-40 basis points higher interest rates to senior citizens on their fixed deposits. This premium is sometimes even higher based on maturity period and the amount of deposits.
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Let’s take a look at banks which offer high interest rates to these senior citizens on their deposits.
IndusInd Bank: The private lender’s Senior Citizen Scheme offers higher interest rates on those above 60 years. It is specially launched for senior citizens.
On deposits of less than Rs 2 crore, senior citizens, not applicable for NRO deposits, get 7.50% on maturity periods of 1 Year 6 Months to below 1 Year 7 Months, 1 Year 7 Months to below 2 Years, 2 years to below 2 years 6 Months, 2 years 6 Months to below 2 years 9 Months, 2 years 9 Months to below 3 years, 3 years to below 61 month, 61 month and above and Indus Tax Saver Scheme (5 years).
DCB Bank: The lender offers 7.10% interest to senior citizens on FD of maturities: 18 months to less than 700 days, 700 days, more than 700 days to less than 36 months, 36 months, more than 36 months to 60 months, and more than 60 months to 120 months.
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RBL Bank: Known to offer some of the highest FD rates, the bank offers up to 7.25% to seniors on deposits below Rs 2 crore with a maturity of 24 months to less than 36 months. The bank gives 7.05% interest rates to senior citizens on deposits less than Rs 2 crore with maturities of 36 months to less than 60 months, 60 months to 60 months 1 day, and Tax Savings Fixed Deposit (60 months).
Kotak Mahindra Bank FD Rates: Effective from September 6, Kotak Mahindra Banks FDs maturing in 390 days to less than 23 months will now earn 6 per cent interest. The bank will now offer fixed deposits with maturities ranging from 23 months to less than 2 years at an interest rate of 6.10 per cent. The lender has hiked interest rates on FDs maturing in 2-10 years to 6 per cent. FD rates for terms ranging from 23 months to less than two years, at a rate of 6.10 per cent.
