Only few banks are offering above 9% fixed deposit interest rates to senior citizens on certain tenures. Private banks and public sector banks are way behind in offering competitive interest rates when compared to Small Finance Banks (SFBs). Many SFBs are covered by DICGC, which insures of amount up to Rs 5 lakh. This insurance is applicable to all deposits such as savings, fixed, current, recurring, etc.
Here’s a look at banks that are offering 9% and over to senior citizens.
Unity Small Finance Bank
Unity Small Finance Bank (SFB) offers fixed deposit interest rates up to 9 percent for general citizens and for senior citizens interest rates up to 9.50%. The bank offers the highest interest rate of 9.50% to senior citizens on tenure of 1001 days. The revised interest rates are applicable from June 14, 2023.
As per the website, “For premature withdrawal of fixed deposit and recurring deposits, a premature penalty of 1.00% shall be charged to the rate applicable for the period the deposit has remained with the bank, or the contracted rate, whichever is lower.”
Jana Small Finance Bank
Jana Small Finance Bank offers fixed deposit interest rates up to 9 percent for senior citizens on tenure of 366 days to less than 2 years.
Fincare Small Finance Bank
Fincare Small Finance Bank has fixed deposit rates as high as 9.11 percent. The bank offers FD interest rates ranging from 3 percent to 8.51 percent to the general public. The highest interest rate of 9.11 percent is offered on tenure of 1000 days. The new rates are applicable from May 25, 2023.
Equitas Small Finance Bank
ESAF Small Finance Bank offers an interest rate of 9% on tenure of 444 days and 888 days for senior citizens and 8.50% for general citizens. The rates are effective from June 5, 2023.
ESAF Small Finance Bank
ESAF Small Finance Bank offers an interest rate of 9% on tenure of 2 years to less than 3 years for senior citizens and 8.50% for general citizens. The rates are effective from April 14, 2023.
According to the bank website, “The interest rate applicable on premature closure of Resident term deposits will be (a) or (b) below, whichever is lower, subject to penalty for premature closure.
(a) The rate of interest for the original/contracted tenor of the deposit
(b) The rate of interest which was applicable at the time of opening of the deposit, for the tenor for which the deposit has remained with the Bank.”
Suryoday Small Finance Bank
Suryoday Small Finance Bank has fixed deposit rates as high as 9.60 percent on tenure of 5 years.. The bank offers FD interest rates ranging from 4.50% to 9.60% to senior citizens. The bank offers 9% on tenure of 999 days. The bank offers 9.10% on tenure of 5 years to regular citizens. These rates are applicable from June 1, 2023.
When you open a fixed deposit with Suryoday Small Finance Bank Ltd., the following interest rate is calculated:
1. On a quarterly basis for deposits with maturities more than six months.
2. For deposits of less than six months, simple interest is paid at maturity.
3. Cumulative Interest/re-investment interest is computed and added to the Principal each quarter, so that Interest is paid on Interest earned in the preceding quarter as well.
Source By: economictimes
