Fixed Deposit (FD) continues to be one of the most preferred investment options for senior citizens looking for regular and secure income after retirement. However, not all banks offer the same interest rates. In such a situation, it is important to compare FD rates of different banks before investing. If you are planning to get FD of 3 years or 5 years, then some private and government banks are offering attractive interest rates to senior citizens.
Who is at the forefront among private banks on 5 year FD?
DCB Bank is offering the highest interest rate of 8.00% on 5 year FD among private sector banks. After this, SBM Bank India and YES Bank are offering a rate of 7.50%. Whereas Jammu & Kashmir Bank is giving 7.35% interest, Axis Bank is giving 7.25% interest and RBL Bank and Tamilnad Mercantile Bank are giving 7.20% interest. In such a situation, private banks can prove to be a better option for senior citizens who want higher returns.
SBI is at the forefront among government banks.
If you want to invest in a government bank, then State Bank of India (SBI) is offering 7.05% interest to senior citizens on 5 year FD. After this, Bank of Baroda is giving 6.90% interest, Punjab National Bank (PNB) is giving 6.85% interest, while Bank of India and Canara Bank are giving 6.75% interest. In other public sector banks this rate is between 6.50% to 6.60%.
Attractive returns are available even on 3 year FD
If your investment time is 3 years, then among private banks Bandhan Bank, IndusInd Bank and YES Bank are offering 7.75% interest to senior citizens. Whereas RBL Bank is offering a rate of 7.70% and IDFC FIRST Bank and SBM Bank India are offering a rate of 7.60%. Among government banks, Bank of India is at the forefront with 7.45% interest, while PNB and SBI are giving 6.80% interest and Bank of Baroda and Canara Bank are giving 6.75% interest.
Keep these things in mind before investing
Experts say that one should not invest in FD just by looking at the highest interest rate. It is important to understand the reliability of the bank, rules for breaking FD prematurely, interest payment option and tax related rules. If the investment amount is large, instead of keeping it in a single bank, dividing it among different banks can be a strategy to reduce risk. Investments made after proper comparison can help senior citizens get safe and better returns.
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