Fixed deposits (FDs) are a safe investment option, especially now. Many senior citizens are interested in them, but knowing which bank offers the highest interest rates is essential. Let’s explore which banks currently provide the best interest rates for a 3-year fixed deposit.
While other investment avenues like shares and mutual funds can grow your money, many still prefer fixed deposits due to their safety and stability. This is particularly true for senior citizens, who often rely on FDs to enhance their savings.
An FD is a savings scheme where money is deposited in banks or financial institutions for a specific period. During this time, the deposit cannot be withdrawn. In return, you receive a fixed interest rate at the end of the term.
One significant advantage of an FD is that the interest rate remains unchanged once the account is opened. When you establish an FD account, you lock in a specific interest rate for the duration of the deposit, which means the bank cannot reduce this rate during the investment period.
Many banks offer additional interest rates for senior citizens, typically those aged 60 and above. This provides an excellent opportunity for them to grow their savings.
Now, let’s examine some banks that offer the highest interest rates on 3-year fixed deposits for senior citizens, specifically for an investment of ₹5 lakh. Notable banks in this regard include the State Bank of India, Punjab National Bank, and HDFC Bank.
These banks provide various interest payment options tailored for senior citizen accounts. By selecting the right choice, seniors can receive interest payments according to their financial needs, choosing from monthly, quarterly, half-yearly, or annual payment schedules.
3-Year Senior Citizens FD Rate on Rs.5 lakh
- If you make a fixed deposit of Rs. 5 lakh for three years in the State Bank of India, you will receive an interest rate of 7.25%.
- For senior citizens, a three-year fixed deposit account in Punjab National Bank (PNB) offers an interest rate of 7.50%.
- Similarly, if you open a senior citizen fixed deposit account in HDFC Bank for three years, you will also receive an interest rate of 7.50%.
Senior Citizens 3-year FD Returns on Rs. 5 Lakh
- Senior citizens expect to receive Rs. 6,20,273 on an investment of Rs. 5 lakh in the State Bank of India over three years.
- An investment of Rs. 5 lakh in PNB for three years will yield approximately Rs. 6,24,858.
- Likewise, an investment of Rs. 5 lakh in HDFC Bank at an interest rate of 7.50% will also yield Rs. 6,24,858.
Senior citizens need to know which bank offers the highest return on an investment of Rs. 5 lakh for three years. You can also check the banks’ websites for more information.