Best FD For Senior Citizens: Bank FDs are still the top choice for senior citizens for safe investments and guaranteed returns. But did you know that by choosing the right bank, you can earn up to 7.75% interest? Be sure to compare these new rates from public and private banks before investing.
Best FD For Senior Citizens: Fixed deposits (FDs) are still the top choice for senior citizens to secure their old age and hard-earned savings. The secure investment and the fixed monthly returns make them unique. But did you know that interest rates can vary significantly between different banks?
Choosing the right bank can increase your profits by thousands of rupees. Let's take a look at the latest report card of public and private banks:
Interest rates at a glance (Senior Citizens Special)
The table below will help you easily decide which bank is better for you:
| Bank Type | Bank Name | Interest Rate (Per Annum) |
|---|---|---|
| Private | Yes Bank | 7.75% |
| Private | Bandhan Bank and RBL Bank | 7.70% |
| Private | IDFC First Bank and IndusInd Bank | 7.50% |
| Government | Bank of Baroda | 7.00% |
| Government | Punjab National Bank (PNB) | 6.90% |
| Government | Central Bank of India | 6.75% |
| Government | Bank of Maharashtra / Union Bank | 6.70% |
Private banks or government banks: Where to invest?
Most people choose public banks for safety, but if you want to earn 0.50% to 1% more interest, private banks are a great option. Institutions like Yes Bank and Bandhan Bank are offering premium rates for senior citizens.
Note these 3 things before investing:
Many banks run special 400- or 500-day schemes that offer higher interest rates than regular FDs. Be sure to inquire about these before investing.
If the annual interest exceeds ₹50,000, the bank may deduct TDS. To avoid this, be sure to submit Form 15H.
If you may need money in between, then read the locking period and premature withdrawal rules carefully.
