Major banks in the country pay slightly higher returns to senior citizens than the general public on fixed income instruments such as term or fixed deposits (FD). Today, top commercial banks - from state-run SBI, Punjab National Bank and Bank of Baroda to private sector peers ICICI Bank and HDFC Bank - provide a return of 3.5-8.15 per cent to senior citizens on fixed deposits up to Rs 1 crore. Investment in bank FD of the same category fetches interest at the rate of 3.5-7.5 per cent for the general public.
Here's a comparison of interest rates paid by top commercial banks to senior citizens and the general public on FD up to Rs 1 crore:
State Bank of India (with effect from July 30, 2018)
ICICI Bank (with effect from November 15, 2018)
HDFC Bank (with effect from November 6, 2018)
Axis Bank (with effect from November 14, 2018)
Punjab National Bank (with effect from November 1, 2018)
Bank of Baroda (with effect from November 1, 2018)
"Branches may continue to pay an additional interest of 0.50 per cent on domestic term deposits of less than Rs. 1.00 crore from senior citizens for all tenors in terms of extant guidelines," state-run Bank of Baroda mentioned on its website.
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