FD Rates: These banks are offering impressive returns of 8.50%! Check the list before opening a Fixed Deposit.
Senior citizens enjoy greater benefits on Fixed Deposits (FDs) because banks offer them higher interest rates compared to the general public. Let’s look at where you can get up to 8.50% interest on FDs this September.
With FDs, individuals deposit a lump sum with the bank for a fixed period and earn interest on it. This interest is calculated on an annual basis. Senior citizens benefit further as their FD interest rates are slightly higher than those for the general public, ensuring financial security during their retirement years.
Planning an FD in September?
If you are a senior citizen planning to open an FD this September, here are the banks offering interest rates of up to 8.50%. Several small finance banks are currently offering this rate to senior citizens.
Banks offering up to 8.50% interest
Some small finance banks are offering 8.50% interest on FDs for senior citizens, though the rates apply to different tenures across three specific banks. Here is the list of these banks:
| Bank | Tenure | Interest Rate |
|---|---|---|
| Equitas Small Finance Bank | 3 Years 1 Day | 8.50% |
| ESAF Small Finance Bank | 800 Days | 8.50% |
| Suryoday Small Finance Bank | 5 Years | 8.50% |
| Jana Small Finance Bank | 2–3 Years | 8.30% |
| Ujjivan Small Finance Bank | 3 Years 1 Day | 8.30% |
| Shivalik Small Finance Bank | 23 Months 1 Day | 8.25% |
| Utkarsh Small Finance Bank | 666 Days | 8.25% |
What interest rates do private sector banks offer?
Private sector banks generally offer lower FD interest rates compared to small finance banks. Here is the list of these banks:
| Bank | Tenure | Interest Rate |
|---|---|---|
| Axis Bank | 5 Years | 7.25% |
| Bandhan Bank | 2 Years | 7.95% |
| City Union Bank | 555 Days | 7.50% |
| CSB Bank | 18 Months | 7.35% |
| DBS Bank | 400 Days | 7.35% |
| DCB Bank | 25 Months | 8.00% |
| Federal Bank | 48 Months | 7.20% |
| HDFC Bank | 3 Years 1 Day | 7.10% |
| ICICI Bank | 3 Years 1 Day | 6.75% |
| IDFC FIRST Bank | 500 Days | 7.35% |
| IndusInd Bank | 2–3 Years | 7.75% |
| Jammu & Kashmir Bank | 888 Days | 7.55% |
| IDBI Bank | 2 Years | 7.00% |
| Karnataka Bank | 555 Days | 7.40% |
| Kotak Mahindra Bank | 2 Years | 7.30% |
| YES BANK | 18 Months | 7.75% |
What interest rates do public sector banks offer?
Public sector banks offer lower interest rates than small finance and private banks, but they provide greater security for your FD. Here is the list showing the interest rates offered by these banks:
| Bank | Tenure | Interest Rate |
|---|---|---|
| Bank of Baroda | 555 Days | 7.25% |
| Bank of India | 3 Years | 7.45% |
| Bank of Maharashtra | 400 Days | 7.15% |
| Canara Bank | 555 Days | 7.10% |
| Central Bank of India | 444 Days | 7.25% |
| Indian Bank | 555 Days | 7.15% |
| Indian Overseas Bank | 444 Days | 7.10% |
| Punjab National Bank | 444 Days | 7.10% |
| Punjab & Sind Bank | 666 Days | 7.35% |
| State Bank of India | 5–10 Years | 7.05% |
| Union Bank of India | 555 Days | 7.05% |
It is worth noting that some banks offer additional interest—over and above the standard senior citizen rate—to individuals aged 80 years or older. Therefore, before opening an FD, you should check if the bank has a separate rate for "super senior citizens." If you fall into that age group, you should choose the FD option accordingly.
