Best fixed deposit schemes for senior citizens: Senior citizens can earn up to 9.5% interest on fixed deposits with select small finance banks, offering higher rates than regular customers and flexible tenures.
Best FD rates for senior citizens: Fixed deposits (FDs) have long been a popular and safe investment choice for small retail investors who look for safety of money and do not chase hefty returns. While FDs typically don’t offer returns as high as other asset classes like equities, gold, real estate, or government securities, they provide one key advantage: the guarantee of a specific return. This assurance of a fixed amount upon maturity makes FDs a reliable and low-risk investment option for many investors. Compared to regular customers, senior citizens get higher interest rates on almost all FD plans offered by banks and NBFCs (non-bank lenders).
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How to choose best FD For senior citizens
Senior Citizen Fixed Deposit schemes cater specifically to individuals aged 60 and above. These FDs offer higher interest rates, up to 0.6% p.a. more than regular rates. Senior citizen FD schemes provide flexible tenures, ranging from 7 days to 10 years. These FD plans also offer the option of premature withdrawals (with a penalty in most cases) and allow the FD to be used as collateral for loans or overdrafts.
In this write-up, we will take a look at 10 best fixed deposit schemes offered by small finance banks with rates listed for 1-year, 3-year, and 5-year tenors. Data is sourced from paisabazaar.com.
How safe is your fixed deposit in small finance bank?
Small finance banks’ depositors are eligible for deposit insurance provided by the Depositor Insurance and Credit Guarantee Corporation (DICGC). The deposit insurance cover from DICGC, an RBI subsidiary, insures cumulative deposits up to Rs 5 lakh made by each depositor.
Here are FD rates of top 10 small finance banks:
Unity Small Finance Bank:
The bank offers a top FD rate of 9% p.a. to general subscribers and 9.5% to senior citizens on tenure of 1001 days. For a 1-year FD for regular customers, the rate is fixed at 7.85% and for a 3-year FD, it’s 8.15%. The bank offers for a 5-year FD 8.15% rate to these customers. Senior citizens are offered an additional 0.5% interest, making their rates 8.35% for 1 year, 8.65% for 3 years and 8.65% for 5 years.
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North East Small Finance Bank:
The bank offers a maximum FD rate of 9% p.a. to general subscribers and 9.5% to senior citizens on deposits with a tenure of 1111 days. For general customers, the bank’s rate for 1-year FD is 7%, 3-year FD 9%, and the 5-year plan 6.25%. Senior citizens benefit from an additional 0.5% and earn rates of 7.5% for 1 year, 9.5% for 3 years and 6.75% for 5 years.
Suryoday Small Finance Bank:
This small finance bank provides an FD rate of 8.6% p.a. to general customers and 9.1% to senior citizens on deposits with 2 years 2 days tenure. On FDs of 1-year, the rate is 8.05% and 3-year 8.6%, and 5-year FD, it is 8.25% for normal customers. Senior citizens are offered up to 0.5% extra rates.
Utkarsh Small Finance Bank:
Utkarsh Small Finance Bank offers an FD rate of 8.5% p.a. to general customers and 9.1% to senior citizens on tenure of 2 to 3 years. On 1-year FD, the rate is 8%, for 3 years, it is 8.5%, and for 5 years, 7.75%. The bank offers an additional 0.60% for senior citizens.
Shivalik Small Finance Bank:
Shivalik Small Finance Bank’s general customers are offered an FD rate of 8.3% p.a. and senior citizens are given 8.8% on FDs with tenure of 18 months to 24 months. The 1-year rate is 6%, the 3-year rate is 7.5%, and the 5-year rate is 6.5%. With an additional 0.50% for senior citizens, their rates are 6.5% for 1 year, 8% for 3 years, and 7% for 5 years.
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Equitas Small Finance Bank:
Equitas Small Finance Bank offers an FD rate of 8.25% p.a. to general customers and 8.75% to senior citizens on FD tenure of 444 days. The rates for a 1-year FD are 8.10%, for a 3-year FD, 8%, and for a 5-year FD, 7.25%. Senior citizens receive an additional 0.50%.
Jana Small Finance Bank:
Jana Small Finance Bank offers an FD rate of 8.25% p.a. to general customers and 8.75% to senior citizens on tenure of 1 year to 3 years. For a 1-year FD, the rate is 8.25%, for 3 years it is 8.25%, and for 5 years, it’s 8.20%. Senior citizens receive an additional 0.50%.
Ujjivan Small Finance Bank:
Ujjivan Small Finance Bank provides an FD rate of 8.25% p.a. to general customers and 8.75% to senior citizens on FD tenure of 1 year. The 1-year FD rate is 8.25%, the 3-year FD rate is 7.20%, and the 5-year FD rate is 7.20%. Senior citizens get an additional 0.50%, resulting in rates of 8.75% for 1 year, 7.70% for 3 years, and 7.70% for 5 years.
ESAF Small Finance Bank:
ESAF Small Finance Bank offers an FD rate of 8.25% p.a. to general customers and 8.75% to senior citizens on tenure of 2 to 3 years. The 1-year FD rate is 6%, the 3-year FD rate is 6.75%, and the 5-year FD rate is 6.25%. Senior citizens receive an additional 0.50%.
SBM Bank:
SBM Bank provides an FD rate of 8.25% p.a. to general customers and 8.75% to senior citizens on tenures ranging 18 months to 2 years 3 days. The rates for a 1-year FD are 7.05%, for a 3-year FD, it’s 7.30%, and for a 5-year FD, it is 7.75%. Senior citizens benefit from an additional 0.50%, giving them rates of 7.55% for 1 year, 7.80% for 3 years, and 8.25% for 5 years.
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