There has been an increase in interest rates for bank accounts due to the Reserve Bank of India (RBI) increasing repo rates and loan interest rates. Despite this, senior citizens can still benefit from higher interest rates on deposits at certain banks. Fixed deposits in banks are becoming increasingly popular due to the attractive interest rates being offered.
Although there are other investment options available, such as government schemes, post office schemes, stock markets, mutual funds, etc., fixed deposits are a safe investment option that offers guaranteed returns.
The RBI has increased repo rates for the past one and a half years, leading banks to increase their loan interest rates and pass the burden onto customers. However, banks have also increased interest rates on fixed deposits, providing some relief to customers.
Senior citizens receive higher interest rates on their deposits in comparison to regular citizens. The difference between the two is about 50 basis points. Hence, if someone chooses to do a fixed deposit (FD) in the name of their parents, they can earn good profits.
Top Banks for Senior Citizen Saving Scheme by Interest Rate
Let’s take a look at the top banks that offer high-interest rates on deposits to senior citizens. HDFC, a renowned private bank, offers 7.10% interest on deposits ranging from 1 year to 15 months for senior citizens.
For deposits ranging from 15 months to 18 months, the interest rate is 7.60%. For deposits ranging from 18 months to 2 years and 11 months, the interest rate is 7.50 percent. The highest interest rate of 7.75 % is offered by HDFC only for deposits ranging from 5 to 10 years.
ICICI Bank, which is the second largest private sector bank in India, offers a maximum interest rate of 7.25% on deposits that vary depending on the tenure. Deposits for a period of one year to 15 months earn an interest rate of 7.25%.
Deposits for 15 months to two years earn an interest rate of 7.05%. Additionally, an interest rate of 7% is offered on deposits with other tenures.
State Bank of India (SBI)
State Bank of India is currently offering interest rates ranging from 7.30% to 7.50% to its senior citizen customers. The bank provides an interest rate of 7.30% on deposits that mature within one to two years, 7.50% on deposits that mature between two to three years and the same interest rate on deposits that mature after five years.
Additionally, the bank is offering a special deposit scheme called Amrit Kalash, which provides an interest rate of 7.60%. The deadline to join this scheme is March 31st.
Bank of Baroda
Bank of Baroda, which is the second largest public sector bank in India, is currently offering an attractive interest rate ranging from 7.35% to 7.75%. For senior citizens, the bank is offering 7.35% interest on deposits with a tenure of one to two years, while the interest rate on deposits with a tenure of 2-3 years is 7.75%.
Additionally, the bank is offering a special fixed deposit scheme called “Baroda Tiranga Plus Deposit Scheme”, which offers an interest rate of 7.65% for a tenure of 399 days.
Kotak Mahindra Bank
The private sector Kotak Mahindra Bank is currently offering an interest rate ranging from 6.70% to 7.80%. For a tenure deposit of one year, the bank is giving an interest rate of 7.60%.
For a deposit of 390 days, an interest rate of 7.65% is being offered. It’s worth noting that deposits for a period of 23 months to two years are eligible for an interest rate of 7.80%.