Fixed deposits for senior citizens are an investment instrument for creating wealth and getting assured returns at retirement. Senior citizens’ fixed deposit interest rates are higher than general FD rates. Senior citizens FDs are a great option for senior citizens who have a low-risk profile and want to invest in risk-free instruments. For Senior Citizens, most banks bid a higher interest rate on FD Interest rates. A person who is 60 years old or older and falls into the ‘senior citizens’ category can open a senior citizen fixed deposit account. However, it is always suggested to fixed deposit investors, especially senior citizens, to review the interest rates provided by different banks before opening an FD account. As a result, here we have compiled 5 banks that are currently fetching higher interest rates on 1-2 year fixed deposits for senior citizens.
1-Year FDs For Senior Citizens
For a one-year term and a deposit amount of less than Rs 2 crore, here are the top five bank fixed deposit interest rates.
| Banks | 1-Year FD Rates | W.e.f. |
|---|---|---|
| Suryoday Small Finance Bank | 7.25% | 15.02.2021 |
| IndusInd Bank | 7.00% | April 26th, 2021 |
| Ujjivan Small Finance Bank | 7.00% | 5th March, 2021 |
| Equitas Small Finance Bank | 7.00% | 25.01.2021 |
| RBL Bank | 6.75% | May 7, 2021 |
2-Year FDs For Senior Citizens
Here are the top five bank fixed deposit interest rates for a two-year term and a deposit amount of less than Rs 2 crore.
| Banks | 2-Year FD Rates | W.e.f. |
|---|---|---|
| Suryoday Small Finance Bank | 7.25% | 15.02.2021 |
| IndusInd Bank | 7.00% | April 26th, 2021 |
| Ujjivan Small Finance Bank | 7.00% | 5th March, 2021 |
| RBL Bank | 6.75% | May 7, 2021 |
| Yes Bank | 6.50% | 10th May, 2021 |
Note
Banks had lowered interest rates in the wake of the Covid-19 pandemic. Senior citizens who depend on a steady stream of income have been struck the hardest by the current low interest rate climate. Leading banks, such as State Bank of India (SBI), promise senior citizens a maximum of 6.2 percent on fixed deposits with a period of 5-10 years, whereas post office small savings schemes promise a better rate if the investment goal is for the long term. However, if a senior citizen is searching for a short-term investment, such as one or two years, the above-mentioned fixed deposits can be considered. Since all of the above-mentioned banks are covered by DICGC for a Rs 5 lakh insurance cover, investing for 1 to 2 years in the above-mentioned bank FDs is secure, which is a consideration that always outweighs interest rates.
