Full list of banks offering 8.5% interest on FDs, Senior Citizens Savings Scheme or FD..

Senior citizens can earn up to 8.50% interest on bank fixed deposits (FDs). Many small finance banks frequently offer higher interest rates. Private, public sector, and foreign banks are also focusing on senior citizens, who generally prefer to invest their retirement savings in FDs. Even a slight difference in interest rates can be significant for large FD amounts.

Several small finance banks are offering higher interest rates on FDs. These include Equitas Small Finance Bank, ESAF Small Finance Bank, Sarvoday SFB, Ujjivan SFB, and AU Small Finance Bank. However, the interest rate varies depending on the FD tenure.

Many private banks are also offering attractive FD rates to senior citizens. SBM Bank India offers the highest interest rate, followed by DCB. Bandhan Bank's interest rate is also just shy of 8%. Among private banks, IDBI Bank offers the lowest interest rate.

Many senior citizens prefer investing in government bank FDs, as they perceive them to be safer. However, interest rates on FDs in government banks are lower than those offered by small finance banks and private banks. Among government banks, Bank of India offers the highest interest rate, followed by Punjab & Sind Bank and then Bank of Baroda.

Among foreign banks, Standard Chartered Bank offers the highest FD interest rates to senior citizens, followed by Deutsche Bank. HSBC Bank also offers higher interest rates on FDs to the elderly. Experts advise senior citizens to spread their investments across FDs in multiple banks rather than putting all their money into a single bank's FD. This is because the insurance coverage limit for deposits in FDs is only ₹5 lakh. Equitas Small Finance Bank is offering a maximum interest rate of 8.5% to senior citizens on a Fixed Deposit (FD) with a tenure of 3 years and one day. This means that if you invest ₹10 lakh in an FD with this bank for this period, you will earn ₹2,87,019 in interest. A similar amount of interest would be earned by keeping the funds with ESAF SFB for 800 days, or with Suryoday SFB for 5 years.

The Senior Citizen Savings Scheme (SCSS) is a government-backed retirement scheme. It offers an interest rate of 8.2%, with payouts made every quarter. Investments in this scheme range from a minimum of ₹1,000 to a maximum of ₹30 lakh. The scheme has a tenure of 5 years, which can be extended once for a period of 3 years. Only individuals aged 60 years or older are eligible to invest in this scheme.

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