Great news for those interested in making bank deposits! Here are the top 7 banks offering the highest interest rates. A three-year term deposit scheme offering an impressive 9.5% interest rate is available to senior citizens. Let’s take a look at the list of these banks.
Many retired individuals keep some of their savings in a fixed deposit to ensure they are not financially dependent on others. The interest earned from the fixed deposit provides them a source of income over time.
For senior citizens looking for the best fixed deposit (FD) interest rate, the State Bank of India offers 7.75 percent, the highest among government banks. HDFC, ICICI, Canara Bank, Bank of Baroda, and Punjab National Bank also offer competitive interest rates.
It’s a favorable time for fixed deposits as banks have steadily increased interest rates over the past two years, offering maximum rates. Some banks even provide over 9% interest.
Many small finance banks offer senior citizens a high 9.5% interest on retail term deposits (Fixed Deposits) of less than three crores. Let’s find out which banks are offering these rates.
Small finance banks offer maximum interest rates through a unique three-year maturity scheme. The North East Small Finance Bank provides the highest interest rate at 9.50%.
These interest rates are available for a three-year tenure. Suryodaya Small Finance Bank offers senior citizens 9.10% interest on three-year deposits, while Utkarsh Small Finance Bank also offers a maximum interest of 9.10% on three-year deposits.
Jana Small Finance Bank is currently offering 8.75% interest on three-year deposits. Unity Small Finance Bank is providing 8.65% interest through a three-year special scheme, and Equitas Small Finance Bank is offering 8.50% interest through a three-year special scheme. AU Small Finance Bank is offering 8% interest for three years.
However, some smaller finance banks offer even higher interest rates for senior citizens. Here are the details:
- Jana Small Finance Bank: 8.75% interest on FDs with tenors of 365 days, 730 days, and 1095 days.
- Equitas Small Finance Bank: 9.00% interest on FD with a tenure of 444 days.
- Utkarsh Small Finance Bank: 9.10% interest on FDs with tenors ranging from 730 days to 1095 days and 1500 days.
- Suryoday Small Finance Bank: 9.10% interest on FDs for 2 to 3 years.
- Unity Small Finance Bank: 9.50% interest on FDs with a tenor of 1001 days and 9.50% on FDs with 546 days to 1111 days.
However, it’s important to note that tax deducted at source (TDS) applies to interest income from fixed deposits. TDS will be deducted for general customers if the interest income exceeds Rs. 40,000, while for senior citizens, the limit is Rs. 50,000. If this limit is exceeded, a 10% tax will be deducted.
Please remember that the information provided here is for informational purposes only. It’s always best to consult with financial experts before making deposits or investments.