In line with the Reserve Bank of India’s (RBI) repo rate hike of 140 basis points over the last few months, several banks have increased their interest rates as well. Higher interest rates discourage the borrowers, which leads to a decrease in liquidity, calms prices and controls inflation. The increasing rates and potential decline in inflation are good news for depositors. Consumer price inflation in India is currently 7 per cent. So, it is sensible to put funds in an FD instrument that gives higher than 7 per cent returns.
Here are some of the banks which are offering more than 7 per cent returns for a 3-year or 5-year FD to senior citizens:
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Fincare Small Finance Bank
This bank is giving 7.5 per cent interest on FDs of 3-5 years tenure.
Jana Small Finance Bank
It is offering 7.35 per cent interest on FDs of the same tenure.
Ujjivan Small Finance Bank
The bank is providing a 7.20 per cent interest rate for FDs with a 3-5 year period.
Deutsche Bank
This bank is offering a 7 per cent rate of interest.
Bandhan Bank
Like Deutsche Bank, it also provides an interest rate of 7 per cent.
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SBI Bank
Senior citizens aged between 60 and 80 years will get an additional interest rate of 50 bps over applicable card rates for up to 5 years. An additional interest rate of 80 bps will be offered for a time of above 5 years on domestic deposits of less than Rs 2 crore.
For staff members and retired staff members who are also senior citizens, the maximum rate of interest to be allowed over the applicable card rate will be 150 bps for a period of up to 5 years and 180bps for a period of above 5 years.
Furthermore, super senior citizens above the age of 80 years will get an additional rate of 80bps over the applicable card rate across all maturity buckets.
For staff members and retired staff members who are also super senior citizens, the maximum interest rate to be allowed over the applicable card rate shall be 180 bps across all maturity buckets.
