In 2022, banks started raising interest rates on fixed deposits FDs. Since then, many banks have increased their FD interest rates, which are currently between 5 and 8 per cent. Senior citizens can also get higher interest rates from banks. FDs are the best investment option for people looking for benefits like high liquidity, premature withdrawal options, nomination facilities, loan overdraft options, etc.
Even though most large banks have raised their fixed deposit interest rates recently, they are still below those offered by small finance banks.
Here are two small finance banks that are DICGC insured and promise senior citizens over 9 per cent returns on fixed deposits.
The interest rate on fixed deposits has gone up by 50 basis points to 226 basis points, according to the Suryoday Small Finance Bank. The new interest rates went into effect on December 6. Senior citizens can earn up to 9.26 per cent more money on their FDs than the general public can, while the latter can only do so for investments under 2 crore. The bank has launched a limited-time offer for a 5 year deposit with a 15 day term. The bank is offering non-senior residents a rate of 9.01 per cent under this short-term fixed deposit programme, and senior citizens a rate of 9.26 per cent.
Senior citizens can get FD interest rates ranging from 4.5 per cent to 9 per cent. The bank currently offers senior citizens an interest rate of 9 per cent annually on fixed deposits placed for terms of 181 and 501 days, while retail investors get 8.50 per cent for the same terms, according to the bank's website.