Bank Interest Rates: Senior citizens should invest some part of their savings in FD, so that they will continue to get income on a regular period. Savings are used to build an emergency fund. However, bank FDs are taxed.
Bank FD Rates: Many banks have increased the interest rate on fixed deposits (FDs) with a tenure of three years for senior citizens. RBI has increased the repo rate for four consecutive times this year. Recently, Bandhan Bank has increased the interest rate of FD of 600 days.
Whereas for non-senior citizens, the interest rate for a normal FD of 600 days is 7.5 percent. Bandhan Bank is offering up to 8 percent interest to senior citizens aged 60 years and above. Small and new private banks are now giving interest of up to 8 percent to senior citizens on FDs of three years.
Senior citizens should invest some part of their savings in FDs, from which they will continue to earn income on a regular basis. Savings are used to build an emergency fund. Although bank FDs are taxed, the minimum tax slab for most senior citizens ensures that the tax liability is minimal or zero if the other income is zero.
Now let us tell you which banks are giving the highest interest on three-year FD to senior citizens.
- DCB Bank and Bandhan Bank are offering 8 percent interest to senior citizens on three-year FDs. This is the highest interest rate among private sector banks. AU Small Finance Bank is also offering interest at the rate of 8 per cent to senior citizens on FDs of three years. This is the best interest rate among other small finance banks. This means that Rs 1 lakh invested will increase to Rs 1.27 lakh in three years.
- Equitas Small Finance Bank is offering interest at the rate of 7.90 percent to senior citizens. That is, if you invest Rs 1 lakh, it will increase to Rs 1.26 lakh in three years.
- IndusInd Bank, Yes Bank and Suryoday Small Finance Bank are offering interest at the rate of 7.50 per cent to senior citizens on three-year FDs. Rs 1 lakh will increase to Rs 1.25 lakh in three years.
- Union Bank is giving interest at the rate of 7.30 percent to senior citizens on FDs of three years. This is the highest interest rate among public sector banks. In three years, your investment of Rs 1 lakh will increase to Rs 1.24 lakh.
- Ujjivan Small Finance Bank is offering interest at the rate of 7.25 percent to senior citizens on FDs of three years. In three years your Rs 1 lakh will increase to Rs 1.24 lakh.
- RBL and Axis Bank are offering interest at the rate of 7.05 per cent to senior citizens for three-year FDs. That is, in three years, Rs 1 lakh will increase to Rs 1.23 lakh.
