Fixed deposits continue to be one of the safest and most trusted investment options for senior citizens in India.
Recently, several small finance banks have announced attractive FD interest rates, with some offering returns as high as 7.5 percent.
These higher rates can help senior citizens earn a steady income while keeping their savings secure.
Small Finance Banks Offering Up to 7.5% Interest
A few small finance banks are currently offering the highest FD rates for senior citizens.
Jana Small Finance Bank, Slice Small Finance Bank, and Utkarsh Small Finance Bank are offering up to 7.5 percent interest on fixed deposits with a three-year tenure.
These rates are higher than what most large banks are offering.
For senior citizens looking to maximise returns without taking risks, these options can be worth considering.
Banks Offering Around 7.25% Interest
Some other small finance banks are offering slightly lower but still competitive interest rates.
Suryoday Small Finance Bank is offering 7.25 percent interest on a three-year FD. Ujjivan Small Finance Bank is offering up to 7.20 percent for the same tenure.
In addition, other banks are offering decent rates for senior citizens.
AU Small Finance Bank offers up to 7.10 percent, Equitas Small Finance Bank offers 7.00 percent, Shivalik Small Finance Bank offers 6.75 percent, and ESAF Small Finance Bank offers up to 6.00 percent.
Senior citizens can choose from these options based on their comfort level and financial goals.
Why Fixed Deposits Are Ideal for Senior Citizens
At a senior age, protecting capital becomes more important than chasing high returns.
Fixed deposits offer guaranteed returns, low risk, and predictable income.
Many banks also provide an extra interest benefit exclusively for senior citizens, which further increases earnings.
Generally, three-year FDs offer the highest interest rates.
However, the tenure should be chosen carefully, keeping in mind regular expenses, medical needs, and emergency funds.
How to Choose the Right FD Option
While interest rate is important, it should not be the only deciding factor.
Senior citizens should also check the bank’s credibility, customer service, online banking facilities, and rules for premature withdrawal.
Small finance banks can be a good option for earning higher returns, but it is wise to diversify investments and ensure deposits remain within insured limits.
A balanced approach can help senior citizens enjoy better returns while keeping their money safe.
