Senior Citizen Fixed Deposit: DCB Bank’s special fixed deposit (FD) for 700 days to 36 months for retail customers is offering a return of 7.50% per annum (p.a.). Senior citizens can earn 8.25 % p.a. Since May this year, the Reserve Bank of India (RBI) has increased the repo rates four times, which is why banks‘ FDs interest rates are becoming more attractive.
Pankaj Bansal, chief business officer of Bankbazaar.com, says, “With inflation still on the higher side and central banks globally continuing with rate hikes, the FD rates will continue to see an upswing in the coming months. The combination of reduced liquidity and sustained rise in key policy rates are expected to keep the FD rates inching higher. Many banks offer special tenor FDs with higher returns to attract customers, while others build higher rates into their existing tenors. If this situation continues, we anticipate that the rates may go up to 8% over the next few months.”
Special bank FDs are those FDs which are offered for a specific number of days. Some banks provide such FDs for a limited period. For instance, HDFC and SBI usually offer special FD schemes for specific tenor for a limited period. Currently, banks including Catholic Syrian, Bank of India, RBL Bank and City Union Bank are offering returns of 7.50%, 7.25%, 7.25%, and 7.1% per annum (p.a.), whereas senior citizens can earn 7.50%, 7.75%, 7.75% and 7.40% p.a., respectively. However, as mentioned below, the tenor for the highest interest rate of FD differs for each bank.
Other banks where senior citizens can earn 7.50% on special FD scheme are Canara Bank (666 days tenor), Bandhan Bank (600 days tenor), Federal Bank (700 days tenor), IDFC First Bank (700 days tenor), Punjab National Bank (600 days tenor), Punjab & Sind Bank (601 days tenor) and Union Bank (599 days tenor).
Retail customers who are not senior citizens can earn a 7% interest rate from these banks for the same tenor mentioned with particular banks.
Read Also: HDFC Bank hikes fixed deposit interest rates, second time this month, See here new rates
