Bank fixed deposits are designed to support senior citizens in their old age by providing guaranteed returns without any risk. Interest rates on fixed deposits have been high for some time now, with banks offering up to 50 basis points more interest to senior citizens than to regular citizens. Some banks are now even offering higher interest rates to senior citizens. Let’s calculate how much interest a million rupees would earn.
Fixed deposits are the best option for senior citizens to avoid financial problems in their old age, as many banks offer high interest rates on FDs with no risk involved. Depositors receive a guaranteed interest rate for a certain tenure. Since the RBI has kept the repo rates at maximum levels, many banks and financial institutions have increased interest rates on deposits, resulting in higher returns. Senior citizens continue to benefit more from FDs than general citizens, receiving about 0.50 % more interest and facing lower TDS.
Now, let’s look at the list of leading private and government banks offering the highest interest on deposits below 2 crores. We will also calculate the maximum interest and returns for a deposit of 1 lakh.
- DCB Bank, One of the leading private sector banks, offers senior citizens the highest interest rate of 8.60 % on FDs for 25-26 months. If one lakh is deposited, the interest received will be Rs. 17,675, totalling Rs. 1,17,675.
- IDFC First Bank is offering 8.50 % interest to senior citizens on a 500-day special deposit. If you deposit one lakh, you will receive Rs. 11,701 as interest within 500 days.
- Bandhan Bank offers 8.35 % interest on annual deposits for senior citizens, resulting in Rs. 8,104 as interest for those who have deposited one lakh.
- IndusInd Bank FD offers Interest rates of 8.25% for senior citizens for one to two years of tenure. Depositing one lakh for a year will result in Rs. 1,08,010; for two years, it will be Rs. 1,16,262.
- Yes Bank offers 8.25 % interest on deposits for 18-24 months, with Rs. 12,170 as interest for 18 months and Rs. 16,262 for two years on a one lakh deposit.
- DBS Bank India offers 8 % interest on deposits of 376 days to 540 days, resulting in Rs. 8,229 as interest for 376 days and Rs. 11,889 for 540 days on a one lakh deposit.
- Karur Vysya Bank is also offering 8 % interest on 444-day deposits, which will result in Rs. 9,742 as interest on a one lakh deposit at maturity.
