Several small finance banks are currently offering higher interest rates on their fixed deposit (FD) schemes to senior citizens compared to the Senior Citizen Savings Scheme (SCSS).
While some banks such as State Bank of India (SBI), HDFC, and ICICI, among others, are offering interest rates of more than 7% on select deposits, there are at least four banks that are providing interest rates of 9% or higher to senior citizens on their FDs.
Below is the latest information on interest rates for senior citizens from some of the leading banks:
Unity Small Finance Bank (SFB)
Unity Small Finance Bank (SFB) is offering a maximum return of 9.5% on a deposit with a 1001-day term to senior citizens. These new rates will be in effect from May 2nd, 2023.
Suryoday Small Finance Bank
Suryoday Small Finance Bank has revised its interest rates on fixed deposits below Rs 2 crore. Senior citizens can now earn from 4.50% to as high as 9.60%. The new interest rates came into effect on May 5, 2023.
Utkarsh Bank
Utkarsh Bank is offering a maximum interest rate of 9.00% for senior citizens on a deposit tenor of 700 days for deposits of less than Rs 2 crore. These rates are effective from February 27, 2023.
Fincare Bank
Fincare Bank is offering a maximum return of 9.01% to senior citizens on a deposit tenor of 1000 days for deposits of less than Rs 2 crore. These rates are effective from March 24, 2023.
Here’s what SBI, HDFC Bank, ICICI, Kotak, PNB, and Axis offer
Leading banks such as SBI, HDFC, ICICI, Kotak, PNB, and Axis are also offering Senior Citizen Fixed Deposits (FDs) with additional interest rates for individuals over 60 years old. While the additional interest rates are attractive, senior citizens should consider other factors before investing in these high-interest FDs as they may not necessarily be better than SCSS.
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State Bank of India FD rates- 3.50% to 7.60%
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HDFC Bank FD rates- 3.50% to 7.75%
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ICICI Bank FD rates- 3.50% to 7.60%
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Kotak Mahindra Bank FD rates- 3.25% to 7.70%
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Punjab National Bank FD rates- 4.00% to 7.75%
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Axis Bank- 3.50% to 7.95%
