Senior Citizens FD rates | Banks that offer up to 8% interest on three-year FDs

A number of banks have raised rates of interest on three-year mounted deposits (FDs) for senior residents after 4 consecutive repo charge hikes by the Reserve Financial institution of India (RBI) this yr. Not too long ago, Bandhan Financial institution raised the rate of interest for senior residents on its 600-day tenure FD. Whereas it would supply 7.5 p.c curiosity on its 600-day regular FD (i.e. non-senior residents), it presents 8 p.c curiosity to senior residents (60 years’ and above age). Smaller and new non-public banks now supply charges as much as 8 p.c on three-year FDs for senior residents, information compiled by BankBazaar exhibits.

Senior residents ought to make investments part of their financial savings in FDs which provide liquidity and guarantee curiosity earnings periodically. The financial savings are helpful to construct an emergency corpus. Though financial institution FD curiosity is taxable, a decrease tax slab for many senior residents ensures that tax legal responsibility is minimal or nil if different earnings is negligible. Listed here are the banks providing the very best curiosity charges on three-year FDs for senior residents.

DCB Financial institution and Bandhan Financial institution supply 8 p.c curiosity on three-year FDs for senior residents. Amongst private-sector banks, these lenders supply the perfect rates of interest. AU Small Finance Financial institution additionally presents 8 p.c curiosity on three-year FDs for senior residents. Amongst small finance banks, this financial institution presents the perfect rates of interest. A sum of Rs 1 lakh invested grows to Rs 1.27 lakh in three years.

Equitas Small Finance Financial institution presents 7.90 p.c curiosity on three-year FDs for senior residents. A sum of Rs 1 lakh invested grows to Rs 1.26 lakh in three years.

IndusInd Financial institution, Sure Financial institution and Suryoday Small Finance Financial institution supply 7.50 p.c curiosity on three-year FDs for senior residents. A sum of Rs 1 lakh invested grows to Rs 1.25 lakh in three years.

Union Financial institution of India presents 7.30 p.c curiosity on three-year FDs for senior residents. Amongst public sector banks, this lender presents the perfect rates of interest. A sum of Rs 1 lakh invested grows to Rs 1.24 lakh in three years.

Ujjivan Small Finance Financial institution presents 7.25 p.c curiosity on three-year FDs for senior residents. A sum of Rs 1 lakh invested grows to Rs 1.24 lakh in three years.

RBL Financial institution and Axis Financial institution supply 7.05 p.c curiosity on three-year FDs for senior residents. A sum of Rs 1 lakh invested grows to Rs 1.23 lakh in three years.

Small finance banks and smaller non-public sector banks are providing greater rates of interest to garner newer deposits. The Deposit Insurance coverage and Credit score Assure Company, a subsidiary of the RBI, ensures investments in mounted deposits of as much as Rs 5 lakh.

The information on FDs is as of November 7 for Axis Financial institution and Bandhan Financial institution. For different banks, it is as of October 19, as seen on lenders’ web sites. Rates of interest are for senior residents of 60-80 (deposit quantity under Rs 1 crore). All listed (BSE) non-public sector banks are thought-about for information compilation. Banks for which verifiable information isn’t out there should not thought-about. For all FDs, quarterly compounding is assumed.