Major commercial banks in the country today pay a 0.5 per cent higher return to senior citizens compared to the general public on fixed deposits of up to Rs 1 crore. Currently, public sector banking majors, such as State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda, pay interest to the tune of 5-7.35 per cent to senior citizens on term deposits - or fixed deposits - of up to Rs 1 crore. Investment in FD in the same category by senior citizens fetches a return of 4-8 per cent in their private sector peers.
Here are interest rates paid by six major banks - SBI, ICICI Bank, HDFC Bank, Axis Bank, PNB and Bank of Baroda - to senior citizens on fixed deposit of 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 July 30, 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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