Small private banks are paying interest up to 7.50%. This interest is being given on the 3-year deposit of the senior citizen. When compared to the big public and private banks of the country, the three-year FD plan of small banks is seen to be more profitable.
The principal remains safe, so that the fluctuations of the market do not have much effect, for this, senior citizens invest money in a fixed deposit (FD). There are many benefits of a fixed deposit, the most important of which is regular income. By investing money in a fixed deposit, senior citizens can get a good amount every month after retirement so that there is no problem for everyday expenses. Given these different types of benefits, FD is the best form of investment for senior citizens.
In the Corona period, the biggest impact of the declining interest of banks is being seen on the income of senior citizens. One reason for this is that banks have reduced the interest rate on FDs as compared to earlier. Since the Reserve Bank has cut the repo rate last year, FD interest rates have been seen to decline since then. However, amid fast falling interest rates, there are some banks which are giving good returns to senior citizens on FD of 3 years. Some of these banks are also running special FD schemes for senior citizens till 31 March. The foremost among them are small private banks, which are challenging the big banks of the country in terms of interest rates.
This bank is paying the highest interest
According to a data of BankBazar, small private banks are paying interest up to 7.50%. This interest is being given on the 3-year deposit of the senior citizen. When compared to the big public and private banks of the country, the three-year FD plan of small banks is seen to be more profitable. For example, Yes Bank is paying 7.50% interest on 3-year FD to senior citizens. DCB and RBL are banks on the second and third numbers, which are offering interest of 7.25% respectively.
Big banks backward
If you compare them with the big private banks of the country, then the whole picture will be clear in the case of FD. On a three-year FD, Axis Bank and Kotak Mahindra Bank are paying 5.9 and 5.6 percent interest respectively. Similarly, ICICI Bank and HDFC Bank are paying 5.65 percent interest for 3 years. The same thing is also with the small finance banks, which have left behind the big banks in the interest rate on FDs. AU Small Finance Bank and Ujjivan Small Finance Bank are paying 7.25% interest on the FD of three years.
Deposit up to 5 lakhs now secured
Among public sector banks, Canara Bank and Union Bank of India are offering the best interest rate. This is for 3 years FD of Senior Citizens. Bank of India and State Bank of India are paying 5.8% interest on the FD of three years. Similarly, Bank of Baroda is paying 5.60% interest on three-year FD to senior citizens. A good news for FD is also that the government has secured FDs up to 5 lakhs. That is, even if the bank sinks, an amount of 5 lakh will definitely be found. Earlier this amount was 1 lakh rupees. The minimum investment in FD differs from bank to bank. At least 100 rupees to 10 thousand rupees can be fixed.
Which bank is paying interest
If you deposit Rs 1 lakh for three years in Yes Bank, then senior citizens will get Rs 1,24,792 in terms of 7.50 percent. Similarly, DCB Bank is giving Rs 1,24,055 as per 7.25%. RBL Bank is giving Rs 1,23,508 as per 7.10%. Similarly, IndusInd 7 is giving Rs 1,23,144 with interest. Among public sector banks, Canara Bank is offering Rs 1,19,562 with 6% interest and Union Bank is paying Rs 1.19,562 with 6% interest.
