FD is considered one of the safest investment options as the risk of losing money is minimal.
Banks offer special FD interest rates to senior citizens. Banks and post offices have many such schemes which are mainly targeting senior citizens.
Fixed Deposit (FD) is a popular investment option India Because they provide low risk investment opportunity with assured returns.
People in India invest in FDs for many reasons like guaranteed returns, low risk, flexible tenor, tax benefits etc.
Banks offer special FD interest rates to senior citizens. Banks and post offices have many such schemes which are mainly targeting senior citizens.
In India, a senior citizen is a resident Indian who is 60 years and above and a very senior citizen is a resident Indian who is 80 years and above at any time during the relevant financial year.
For the empowerment of senior citizens, the Union Budget 2023-24 also announced that the maximum deposit limit for Senior Citizen Savings Scheme will be increased from the existing Rs 15 lakh to Rs 30 lakh from the next financial year.
In FDs, the interest rate is fixed for the entire tenure of the deposit, which means that investors know exactly how much they will earn at the end of the deposit tenure.
FD is considered one of the safest investment options as the risk of losing money is minimal.
FDs come with flexible tenure options, allowing investors to choose a term that best suits their financial goals and needs.
FDs offer tax benefits under section 80C of the Income Tax Act.
Here is a comparison of fixed deposit interest rates offered by 5 public sector banks (PSBs) to senior citizens for fixed deposit tenure of 5-10 years (rates for deposits below Rs 2 crore).
1. State Bank of India
State Bank of India (SBI) is offering an interest rate of 7.5% per annum (with effect from 15/02/2023) on fixed deposits of 5-10 years to senior citizens. For the general public, the FD interest rate for the same tenure is 6.50%.
SBI has also introduced a specific tenure plan of ‘400 days’ (Amrit Kalash) at an interest rate of 7.10% (with effect from February 15, 2023). Senior citizens are eligible for an interest rate of 7.60%. The scheme is valid till March 31, 2023.
2. Punjab National Bank
Punjab National Bank (PNB) is offering 7% FD interest rate to senior citizens on a 5-year scheme.
The bank is offering 7.3% interest to senior citizens for a period of 5 to 10 years.
For the common people, the bank is offering 6.50% FD interest rate for 3 to 10 years.
recently, PNB raised interest rates Tenure up to 30 basis points (bps) on multiple fixed deposits. The new interest rates have come into effect from February 20.
3. Central Bank of India
The Central Bank of India has announced an interest rate of 6.92 per cent per annum to senior citizens on FDs of 5 years and above and up to 10 years. The same interest rate is applicable for FDs of 3 to 5 years.
4. Canara Bank
Senior citizens opting for FD in Canara Bank can get 7% p.a. interest for 5 years on the repayable deposit. The same interest rate is applicable for tenure of 3 years and above to less than 5 years.
For non-refundable deposits above Rs 15 lakh and below Rs 2 crore, the bank is offering 7.45% interest to senior citizen customers.
5. Bank of India
Bank of India is offering 6.75 per cent interest to senior citizens on fixed deposits of less than 5 to 8 years. The same rate is applicable for periods above 8 years and 10 years.
The bank is offering 7.25% interest rate to senior citizens for FD scheme from 2 years to less than 5 years.
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