Senior citizens now have their best fixed deposit booking opportunity due to the increase in the repo rate, which has risen by a total of 250 basis points to 6.50 per cent so far. Most banks and NBFCs offer a 50 bps premium over the standard interest rate on fixed deposits, however, these preferential interest rates are made available only to senior citizen residents who book fixed deposits for pre-determined tenures. Annual consumer price inflation in India rose to 6.52% in January 2023, the highest level in three months from 5.72% in December. On the plus side, senior citizens can now earn returns on their deposits that beat inflation apart from the DICGC cover on the deposits. 5 lakhs, which is icing on the cake for them. in this discussion Fixed deposit To see returns that outperform inflation, we take into account three public sector banks that guarantee returns above 8% to senior citizens.
Punjab And Sind Bank
This PSB lender announced an interest rate hike Fixed deposit less than 2 crores on 21/02/2023. The bank had introduced several special tenures with additional interest rate benefits. But PSB-Utkarsh 222 Days PlanSenior citizens will get an interest rate of 8.50% while very senior citizens will get an interest rate of 8.85%.
On PSB Superb 300 Days Deposit Scheme, senior citizens can get 8.00% and ultra senior citizens 8.35% through offline deposit while senior citizens can get 8.25% and ultra senior citizens can get 8.60% through online mode.
Punjab National Bank
PSU Lender PNB Increase in interest rates on domestic fixed deposits of less than Rs. 2 crores on 20 February 2023. On a special tenure of 666 days, the bank is now promising a maximum interest rate of 7.75% for senior citizens, although ultra senior citizens can earn as high as 8.05%. Whereas at PNB Uttam (Non-callable) fixed deposit scheme (For deposits above Rs 15 lakh), the bank is offering a maximum interest rate of 7.80% for senior citizens and 8.10% for senior citizens.
For domestic deposits below Rs. 2 crore from PNB, senior citizens of 60 years and above (up to the age of 80 years) will get an additional interest rate of 50 basis points (bps) over standard card rates and 80 bps for tenure up to 5 years. for a period not exceeding 5 years. In addition, very senior citizens who are above 80 years of age will get an additional interest rate which is 80 basis points higher than the respective card rate for all maturity periods.
Union Bank of India
This PSU bank had increased its last Fixed deposit Rates as on 25/11/2022. On two special tenures of 800 days and 3 years, Union Bank of India is offering a maximum interest rate of 7.30%. Senior citizens can earn 7.80% over these tenors, thanks to the additional rate applicable to resident senior citizen deposits, which is 0.5% above the standard rate.
On the other hand, ultra senior citizens can earn 8.05% over the same period, thanks to the additional rate component applicable to resident ultra senior citizens, which is 0.75% above the standard rate. Union Bank of India mentioned on its website, “Additional rate on Super Senior Term Deposit will be applicable for Fixed Deposits opened / renewed on or after 01.12.2022.”
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