Best FD rates for senior citizens: Fixed deposits (FDs) have long been a popular and safe investment choice for small retail investors who look for safety of money and do not chase hefty returns. While FDs typically don’t offer returns as high as other asset classes like equities, gold, real estate, or government securities, they provide one key advantage: the guarantee of a specific return. This assurance of a fixed amount upon maturity makes FDs a reliable and low-risk investment option for many investors. Compared to regular customers, senior citizens get higher interest rates on almost all FD plans offered by banks and NBFCs (non-bank lenders).
How to choose best FD For senior citizens
Senior Citizen Fixed Deposit schemes cater specifically to individuals aged 60 and above. These FDs offer higher interest rates, up to 0.6% p.a. more than regular rates. Senior citizen FD schemes provide flexible tenures, ranging from 7 days to 10 years. These FD plans also offer the option of premature withdrawals (with a penalty in most cases) and allow the FD to be used as collateral for loans or overdrafts.
In this write-up, we will take a look at 10 best fixed deposit schemes offered by small finance banks with rates listed for 1-year, 3-year, and 5-year tenors. Data is sourced from paisabazaar.com.
Also Read Fixed Deposits: 7 banks offering more than 8% return on fixed deposits Unified Pension Scheme: What will be the minimum pension under UPS after 8th Pay Commission gets implemented? Best Senior Citizen Fixed Deposits in November – Check the latest interest rates Senior Citizen Fixed Deposits with highest returns in November – Compare and choose the right one
Also read: Post Office Savings Schemes: Check out THESE top 5 plans with better interest rates than most bank FDs!
How safe is your fixed deposit in small finance bank?
Small finance banks’ depositors are eligible for deposit insurance provided by the Depositor Insurance and Credit Guarantee Corporation (DICGC). The deposit insurance cover from DICGC, an RBI subsidiary, insures cumulative deposits up to Rs 5 lakh made by each depositor.
Here are FD rates of top 10 small finance banks:
Unity Small Finance Bank:
The bank offers a top FD rate of 9% p.a. to general subscribers and 9.5% to senior citizens on tenure of 1001 days.
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