Highest Interest Rate on Senior Citizen FD: The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points (0.25 percent) for the second consecutive time, due to which banks have started changing their fixed deposit (FD) interest rates. This change is important for investors who are looking for safe and stable returns. It has a greater impact, especially on senior citizens, who invest their retirement savings in FDs and these rates affect their income.

The cut in repo rate is directly affecting the lending and deposit rates of the banking sector. On the one hand, loans are getting cheaper, on the other hand, banks have to reduce interest rates on deposits. However, even in this changing scenario, some banks are still offering attractive interest rates on senior citizen FDs.

If you are a senior citizen and want to get safe and guaranteed returns by investing your savings in 1 to 3-year fixed deposits, then this bank list can prove to be helpful for you.

These banks are giving the highest interest to senior citizens-

Axis Bank

7.20% p.a. - 7.75% p.a.

Bandhan Bank

7.75% p.a. - 8.55% p.a.

Bank of Baroda

7.35% p.a. - 7.65% p.a.

Central Bank of India

7.35% p.a. - 7.75% p.a.

HDFC Bank

7.10% p.a. - 7.85% p.a.

ICICI Bank

7.20% p.a. - 7.85% p.a.

IDBI Bank

7.00% p.a. - 7.50% p.a.

IDFC FIRST Bank

7.00% p.a. - 8.40% p.a.

IndusInd Bank

7.75% p.a. - 8.49% p.a.

Karnataka Bank

7.00% p.a. - 8.00% p.a.

Kotak Mahindra Bank

7.60% p.a. - 7.90% p.a.

Bank of Maharashtra

7.00% - 7.25% p.a.

Punjab National Bank

7.20% p.a. - 7.75% p.a.

RBL Bank

8.00% p.a. - 8.50% p.a.

South Indian Bank

7.00% p.a. - 7.90% p.a.

State Bank of India

7.25% p.a. - 7.50% p.a.

Tamilnad Mercantile Bank

7.00% p.a. - 8.00% p.a.

UCO Bank

6.80% p.a. - 7.55% p.a.

Union Bank of India

6.90% p.a. - 7.80% p.a.

YES Bank

7.75% p.a. - 8.50% p.a.

(Note: This list of banks related to interest rates on senior FDs has been prepared by BankBazaar.com. This is for your information. Banks keep changing their rates from time to time. In such a situation, investors are advised to confirm the interest rate from the official website or branch of any bank included in the above list before investing money in FD.)

Effect of repo rate cut-
With the second consecutive cut in repo rate by the Reserve Bank, banks are rebalancing their lending and deposit strategies. Its effect is being seen in new FD booking, where interest rates are being gradually reduced for general customers, some banks have still maintained high rates for senior citizens, so that they can retain their safe investment options.

What to keep in mind before investing?

While investing in FD, definitely check the minimum and maximum tenure of the bank, interest rate, and premature withdrawal rules.

If you are a senior citizen, make sure that you are eligible for the Senior Citizen FD scheme, so that you can get more interest.

Compare the interest rates of different banks and make investment decisions based on that.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.