Fixed deposits are the best and safest option for senior citizens because they can earn better rates than the general public and have their investments covered by the DICGC up to 5 lakhs. Seniors are choosing fixed deposits as their top choice of fixed-income instrument for their golden years in the setting of rising interest rates, as some banks have started delivering returns that outperform inflation. Depending on their needs during their golden years, seniors can choose from a number of interest pay-out options, including monthly, quarterly, half-yearly, and annual payouts. Fixed deposits are the most flexible option in the debt category because they have maturities ranging from 7 days to 10 years.
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As a result, the following list of 5 banks offers an interest rate that ranges from 7.50% to 8.25% for senior citizens who want to invest in a fixed deposit scheme for 2 years.
Bandhan Bank
The interest rates on fixed deposits offered by Bandhan Bank are effective as of August 22, 2022; the new rates apply to retail accounts with less than Rs. 2 crores. On fixed deposits maturing in more than 18 months but less than two years, Bandhan Bank guarantees senior persons an interest rate of 7.50%.
Jana Small Finance Bank
The Jana Small Finance Bank’s fixed deposit interest rates are valid as of June 15, 2022, and the new card rates apply to accounts under INR 2 crore. At the moment, Jana Small Finance Bank offers fixed deposits with maturities between 1 and 2 years to senior citizens at an interest rate of 8.05%.
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Yes Bank
As of August 10, 2022, the interest rates for fixed deposits with Yes Bank are in effect. The minimum deposit required by Yes Bank to start an FD is INR 10,000, and reinvestment is allowed for a minimum tenure of 6 months and 1 day. Yes Bank guarantees fixed deposits due in 18 months to under 3 years would earn elderly citizens an interest rate of 7.50%.
IndusInd Bank
As of August 12th, 2022, the interest rates for fixed deposits with IndusInd Bank are in effect. On fixed deposits with premature withdrawals permitted that mature in 1 year 7 months to less than 2 years, IndusInd Bank is offering an interest rate of 7.50%.
Utkarsh Small Finance Bank
The bank last changed the interest rates on its fixed deposits on August 12, 2022. Both new fixed deposits and renewals of currently fixed deposits are subject to the revised rates. Fixed deposits with a duration of 2 years or 730 days and an interest rate of 8.25 percent are offered to senior citizens by the bank. The bank offers fixed deposits maturing in 700 days to five years at 7.50% for the general public and 8.25% for senior citizens, which is not only the highest rate in the banking sector but also much higher than the current rate of retail inflation.
