Banks offering up to 7.5% interest rates on Fixed Deposits to Senior Citizens

People have plenty of options to manage their money including fixed deposits (FD). Fixed deposit is a type of investment or saving account where the banks or the NBFCs provides a higher rate of interest to the investors as compared to regular saving accounts.

It is one of the smartest and conventional ways to secure money and let it grow. It provides an assured return without risk. Interestingly, senior citizens have always preferred this mode of investment to earn higher returns. To counter the slowdown created by the COVID-19 pandemic, the Reserve Bank of India's (RBI's) has decided to keep the repo rate at 4 per cent after which many banks reduced their FD interest rates.

However, certain private banks are still offering competitive rates up to 7.5 per cent for senior citizens when many lenders have reduced their interest rates to around 5-6 per cent.

Here is the name of three such banks that are offering interest rates up to 7.5 per cent on fixed deposits:

DCB Bank: The private sector scheduled commercial bank has revised its interest rate on February 5, 2021. Its offerings

Term of 7-14 days: 4.25 per cent

Term of 15-45 days: 4.80 per cent

Term of 46-90 days: 4.75 per cent

Term of 91 days to six months: 5.50 per cent

Term of 6-12 months: 5.95 per cent

Senior citizens will also receive an additional 0.50 per cent interest rate on their deposits for the duration.

Yes Bank: Mumbai-based private lender has revised the interest rates on its fixed deposits. It offers a 50 basis point or 0.50 per cent higher rate to senior citizens on their deposits across all tenures. However, the bank is offering 75 basis points or 0.75 per cent additional rates for tenors of three years and more to senior citizens compared to the rate that applies to the general public or depositors.

IndusInd Bank: Pune-based commercial banking company has revised its interest rates on term deposits on April 26, 2021. Currently, the private lender is offering an additional 50 basis points or 0.50 per cent rates on the term deposits of the senior citizens. They will accrue interest rates ranging from 3.25 to 7 per cent for terms with maturity terms ranging from seven days to five years.