Fixed Deposit is one of the traditional investment schemes in India, which provides guaranteed returns. They are risk-free investments and are generally popular among senior citizens who cannot be exposed to sentimentally driven market related instruments. Currently, many banks have increased their FD rates in line with the RBI’s repo rate hike. Generally, in a rate hike scenario, bank deposit schemes especially FDs become attractive. This month many banks have introduced a new FD scheme for the elderly. A senior citizen can also earn up to 8.15% on his deposits.
In the last three policies, reserve Bank of India The repo rate has been increased by 140 basis points. The latest increase was in line with another 50 basis points in the August 2022 policy. At present the repo rate is around 5.40%.
This has given banks enough room to enter the tug-of-war to give attractive Fixed deposit, Senior citizens are currently the biggest beneficiaries of the latest repo rate hike as they get an additional rate of return on ordinary FDs.
Here are a few banks that have recently revised their FDs and launched new FD schemes for senior citizens.
Unity Small Finance Bank:
Small Finance Bank (SMF) offers a rate of 8.15% to senior citizens for tenures ranging from 2 years to more than 3 years and 3 years to 5 years. The rate is 7.50% on a tenure of 5 years to 10 years. SMF offers at the rate of 7.85% on every 1 year tenure and 1 year to 18 months tenure. The interest rate on the tenure of 18 months to 2 years is 7.90%.
Under its callable bulk deposit, senior citizens get an additional 50 basis points on FDs below 2 crore to 100 crores and above.
below 2 crore FD, for general category, SMF offers a rate of 6.75% for 1 year to 2 year tenure, while this rate is 7% for 2 year to 5 year tenure and 5 year to 10 year tenure is 6.50%. , For senior citizens, an additional 50 basis points is levied on these rates.
However, in Unity SMF, non-refundable deposits are not offered to a senior citizen due to the urgency of the requirement.
IDBI Bank:
From 22nd August, IDBI Bank is offering Senior Citizens at 6.10% on FDs below 2 crores. The rates are 6.35% for tenures of less than 18 months above 1 year, and 6.40% for tenures from 18 months to less than 30 months, respectively. The rate is 6.45% on tenures ranging from 30 months to less than 3 years. Whereas the bank gives interest at the rate of 6.50% on tenures ranging from 3 years to less than 5 years.
IDBI Bank offers a rate of 6.55% for tenures ranging from 5 years to 10 years.
The bank has launched Amrit Mahotsav FD scheme for 500 days from 22nd August. Under this scheme, it offers a rate of 6.70% on non-callable deposits. 1.5 million. The interest rate on callable deposits for senior citizens is 6.60%.
For Amrit Mahotsav FDs, IDBI Bank said, “A normal mark-up of 0.50% will be available only for senior citizens and a normal mark-up of 1% will be available for retired senior citizen employees.”
ICICI Bank FD Rates:
On its website, the bank said, “ICICI Bank offers interest rates of up to 6.5% p.a. for senior citizens (above 60 years of age) and up to 5.75% p.a. for citizens below the age of 60 years.”
On FD below 22nd August 2 crore, the bank offers a rate of 5.15% on tenures ranging from 185 days to less than 1 year, while for senior citizens the rate is 6% on tenures ranging from 1 year to 2 years.
ICICI Bank offers senior citizens 6.10% on tenures of 2 years 1 day to 3 years, while the rate for tenures of 3 years to 10 years is 6.60%.
A senior citizen can also earn 6.60% on 5 years (80C FD) – up to a maximum 1.50 lakh tax saving scheme.
Under its Golden Years FD interest rates from August 19, the bank said, “Resident senior citizen customers will get an additional interest rate of 0.20% on FDs for a limited period of time over and above the existing additional rate of 0.50% per annum (‘FD on Include the keyword ‘interest rate’).”
In the Golden Years FD scheme, an additional rate will be available on fresh deposits as well as deposits renewed during the plan tenure. Whereas the tenure is from 5 years 1 day to 10 years. This scheme is valid till 7 October 2022.
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