There are multiple options that can be explored to manage the money. Among these, a fixed deposit (FD) remains a go-to option for people who want assured return without a risk. Senior citizens have always preferred saving in FDs. After retirement, they usually like to park their investments in FDs to gain returns in terms of steady earnings. However, the Reserve Bank of India (RBI)’s recent decision to keep the repo rate unchanged at 4 per cent, to counter the economic slowdown caused by COVID-19 pandemic, has made various banks lower their FD interest rate.
However, there are still some private and small finance banks that are offering competitive rates for the senior citizens. Several private lenders are doling out approx. 5-6 percent interest rates, while there are few private lenders currently offering a higher interest rates of up to 7.5 percent.
Here are the top three banks offering up to 7.5 percent return on fixed deposits:
The private lender had revised its rate of interest as of February 5, 2021. DCB Bank is offering 4.25 percent for a term of 7-14 days, 4.80 percent for 15-45 days, 4.75 percent for 46-90 days, 5.50 percent for 91 days to 6 months, and 5.95 percent for 6-12 months. Senior citizens will also receive an additional 0.50 percent interest rate on their deposits for the duration.
The bank has revised interest rates on its FD rates and the private lender is currently offering senior citizen’s 50 basis points higher on their deposits across all tenures. However, for tenors of three years and more, the bank is providing 75 basis points or 0.75 percent additional rates to the senior citizens when compared to general depositors/public.
The bank revised their interest rates on term deposits on April 26. However, IndusInd Bank is currently offering its senior citizens depositors an additional 0.50 percent on their term deposits. They will accrue interest rates ranging from 3.25 to 7 percent for terms with a maturity terms ranging from seven days to five years.