Highest fixed deposit (FD) interest rates for senior citizens: This bank offers up to 9.1%. Details here

The biggest tension for senior citizens is to manage their expenses after retirement, because the government has discontinued the old pension scheme. Also, there has never been a provision for pension in the private sector. In such a situation, senior citizens have the tension of managing their household and medical expenses.

The Reserve Bank of India (RBI) cut its repo rate from 6.50% to 6.25%, a 25 basis point decrease. This presents a problem for investors in Fixed Deposits (FDs) because a decrease in the repo rate usually indicates a future decrease in bank interest rates. This is the last chance for FD investors, particularly senior citizens, to lock in higher rates before banks start cutting them.

Small finance banks often offer attractive interest rates on Fixed Deposits (FDs) for senior citizens, typically higher than those of major commercial banks. These banks focus on serving underserved sectors and may offer better rates as part of their strategy to attract deposits.

Unity Small Finance Bank latest FD rates

Unity Small Finance Bank offers attractive Fixed Deposit (FD) rates, ranging from 4.50% to 9.50% for the general public and 4.50% to 9.50% for senior citizens, depending on the tenure. These rates apply to FDs maturing in 7 days to 10 years. The revised deposit interest rates came into effect on 12 February.

In the following scenarios, the interest rates for senior citizens exceed 9%: For deposits of 501 days, the rate is 9.00%; for 1001 days, it is 9.50%.

Suryoday Small Finance Bank latest FD rates

Suryoday Small Finance Bank offers the following Fixed Deposit rates effective from February 1, 2025:

The interest rate on 5-year deposits is 8.60% for the general public and 9.10% for senior citizens.

For deposits with tenures ranging from 7 days to 10 years, the rates vary from 4.00% to 8.60% for general depositors and 4.50% to 9.10% for senior citizens.

Utkarsh Small Finance Bank latest FD rates

Utkarsh Small Finance Bank offers the following Fixed Deposit rates effective from June 7, 2024:

The interest rate for 1500-day deposits is 8.50% for the general public and 9.10% for senior citizens.

For deposits maturing in 7 days to 10 years, the rates range from 4.00% to 8.50% for general depositors and 4.60% to 9.10% for senior citizens.

Before investing, always compare the rates and terms offered by various small finance banks and consider the bank’s credibility and financial stability.

If any elder in your house is facing such a problem, then let us tell you that at present some banks are giving more than 9 percent interest on 5-year FD. If any senior citizen wants to arrange for pension, then by depositing money in these banks, he can earn a good amount of interest every month.

How to get 9.1% interest

In the banks we are telling you about here, senior citizens will have to make FD for a time period of 5 years. Also, the amount deposited should be less than Rs 3 crore. If you fall under the old tax regime, then you can also get tax benefits.

Tax relief will be available under section 80C

If senior citizens have opted for the old tax regime, they will get tax relief under Section 80C of the Income Tax Act on the interest earned on FD, but let us make it clear here. Those who have opted for the new tax regime will not get tax rebate on FD interest.

These banks are giving 9.1% interest on FD

Suryodaya Small Finance Bank is currently offering 9.1 percent interest to senior citizens. Apart from this, Unity Small Finance Bank is offering 8.65 percent interest to senior citizens.