Fixed deposit: 5 banks offer over 9% interest rates on senior citizen FDs

Interest rates of fixed deposits (FDs) have gone up significantly in the last year. A few small finance banks are still offering over 9 per cent interest rates on fixed deposits to senior citizens. Take a look at the banks that offer over 9 per cent interest rates on senior citizen FDs.

Unity Small Finance Bank FDs
Unity Small Finance Bank offers over 9 per cent interest rates on senior citizen fixed deposits of select tenures. For FDs maturing between 181 and 201 days, the bank offers an interest of 9.25 per cent to senior citizens. On FDs maturing in 501 days, senior citizens can earn an interest rate of 9.25 per cent. Senior citizens can get an interest rate of 9.5 per cent for FDs maturing in 1001 days.

Fincare Small Finance Bank FDs

Senior citizens can earn an interest rate of 9.11 per cent on fixed deposits maturing in 1000 days.

Jana Small Finance Bank FDs
Senior citizens can also earn an interest rate of 9 per cent on fixed deposits of select tenures in Jana Small Finance Banks.

For FDs maturing between 366 and 499 days, Jana Small Finance Bank offers an interest rate of 9 per cent to senior citizens. The small finance bank offers an interest rate of 9 per cent for FDs maturing between 501 and 730 days. Fixed deposits maturing in 500 days will fetch an interest rate of 9 per cent in Jana Small Finance Bank.

Suryoday Small Finance Bank FDs
Suryoday Small Finance bank offers an interest rate of 9.6 per cent to senior citizens for fixed deposits maturing in five years. FDs maturing in 999 days will get an interest rate of 9 per cent in this small finance bank.

ESAF Small Finance Bank FDs
ESAF Small Finance Bank offers an interest rate of 9 per cent on senior citizen FDs maturing between two years and three years.

Do note that the above-mentioned interest rates are available only for senior citizens.

Do remember that fixed deposits are protected by the deposit insurance program to the tune of Rs 5 lakh per depositor. It includes both the principal and interest amount. Under this insurance program, each depositor of each scheduled bank is covered for cumulative deposits (including fixed, current, savings, and recurring deposits) of up to Rs 5 lakh, in case of bank failures. This cover makes small private sector banks offering higher FD yields equally ‘safe’ as public sector banks and major private sector banks for cumulative deposits of up to Rs 5 lakh.

'Start booking FDs for longer tenures'
"Depositors can start booking FDs for longer tenures, especially if those are offered at attractive yields. However, banks having more aggressive targets for their credit growth or those having relatively smaller deposit bases may resort to further FD rate hikes to achieve their targeted credit growth," said Naveen Kukreja, Co-Founder & CEO, Paisabazaar.