Best FD Rates For Senior Citizens: Top Six Banks Offering Highest Interest Rates

Fixed deposits are a popular investment choice for people with a low-risk appetite. Unlike stocks or other market-linked investment schemes, FDs offer guaranteed stable returns.

The tenure for such deposits ranges between seven days and over 10 years. They offer a higher interest rate than a savings account while keeping the principal amount secure. Banks are offering premium interest rates to senior citizens to make FDs more lucrative for them.

Leading banks are offering attractive interest rates on FDs as the Reserve Bank of India has kept key lending rates unchanged. The apex bank, in its latest monetary policy review on Oct. 9, kept the repo rate unchanged at 6.5% for the 10th consecutive time. This could be an opportune time to invest in FDs, with a potential drop in the interest rates expected amid speculations of a rate cut in December.

Here are six banks offering the highest FD interest rates for senior citizens.

North East Small Finance Bank gives the highest FD interest rate for senior citizens at 9.50% per annum for a tenure of 546 days to 1,111 days.

Suryoday Small Finance Bank offers an interest rate of 9.10% for senior citizens in tenures between two years and three years.

Utkarsh Small Finance Bank is among the lenders with the highest FD interest rates for senior citizens. Its FD rates are at 9.10% for a tenure of two years to three years, according to its website.

Jana Small Finance Bank's FD interest rates start at 8.75% per annum for tenures between 365 days and less than five years.

Among leading private sector lenders in India, RBL Bank offers one of the best interest rates for senior citizens. RBL Bank FD interest rates are fixed at 8.6% per annum for senior citizens on deposits for 500 days.

Bank of India offers one of the best FD interest rates for senior citizens when it comes to public sector banks. Its FD rates are set at 7.80% per annum for senior citizens on a tenure of 400 days.