Best Fixed Deposit Interest Rates for Senior Citizens

by Kuldeep on May 22, 2012

Everyone needs savings and especially when someone is in the later stages of the life it becomes even more essential for the senior citizens to get income out of their savings. Because at that point of time they are not able to work properly and needs rest. So saving plans or fix deposits become very important for their livelihood. They always are looking for the interest rates suited most to their needs. This offer has been specially introduced to oblige the old people and encourage them to consume their savings in a secure way.

Different banks are offering different kind of interest rates. The time period of the fix deposits also differs from bank to bank. There are a lot of banks offering very healthy interest rates on fix deposits for the senior citizens. The interest rate varies from 9 % to 11 % in all the banks. The interest rate for the senior citizens is quite high as compared to other fixed deposits. It enables them to invest their whole life saving with security and earn a reasonable profit to fulfill their needs in routine life. They do not have to depend on their youngsters for money. They still can manage their lives with their own will and maintain a decent lifestyle without being restless. Almost every bank is paying something extra for senior citizens fix deposit compare to the other fix deposits. This excessive ratio goes up to 1% that is considered to be a quite a relief to the seniors.

Most of the banks are offering 10% interest rate and some of them are even paying a little higher. So when you are looking to deposit, you should at least expect 10% interest rate and should prefer the bank which is paying a higher percentage to acquire more profits. Although rates of interest change time to time, but, there is an up word trend in the interest rate from last decade. Rates have climbed dramatically since 3.5% to almost 11%. The top five banks which are offering higher interest rates can be categorized as follows,


S.No.

Bank

Tenure

Interest Rate

1 Dhanalaxmi Bank

3 – 5 years

10.60%

2 Yes Bank

15 months

10.60%

3 South Indian Bank

39 months

10.50%

4 Karur Vysya Bank

1 year to 2 years

10.50%

5 Lakshmi Vilas Bank

1 year to less than 3 years

10.25%

6 Karnataka Bank

1 year to 2 years

10.25%

7 City Union Bank

1 year

10.25%

8 State Bank of Patiala

999 days

10.25%

9 Axis Bank

1 year to less than 3 years

10.25%

10 Indian Bank

1 year to less than 3 years

10.25%

11 Syndicate Bank

211 to 269 days

10.05%

12 Bank of India

8 years and above

10.05%

13 Tamil Nadu Mercantile Bank

1 year to less than 2 years

10.00%

14 Punjab and Sind Bank

500 days

10.00%

15 IDBI Bank

500 days

10.00%

16 J&K Bank

2 years to less than 5 years

10.00%

17 Vijaya Bank

1 year to less than 2 years

10.00%

18 Indian Overseas Bank

1 – 3 years

10.00%

19 ICICI Bank

390 days to 5 years

10.00%

20 Kotak Bank

390 Days

9.90%

21 Andhra Bank

1 year to 3 years

9.90%

22 Corporation Bank

12 months to 2 years

9.75%

23 Federal Bank

1 year

9.75%

24 State Bank of Travancore

1 year to 3 years

9.50%

25 Canara Bank

1 year

9.50%

26 Bank of Baroda

444 days

9.35%

Some other banks are also paying similar interest rates with slight changes in terms and conditions like time period or minimum account balance limits. Before depositing money one should make sure that if there are any hidden charges included which will be refunded from the profits in the shape of bank charges or any internal charges.

On the whole after getting the complete information about the deposit procedure one should really deposit the money where the end result of the profit is in favor of the depositor.

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Conclusion:
There is a noticeable increase in interest rate. One should really invest in fix deposits to be in line earning more by this increase. Every bank is ultimately paying a similar kind of interest rate so it is the depositor’s duty to choose best according to his needs.

Note: This article last Updated on 21st May 2012 If you found mistake in any bank fixed deposit rate kindly let us know! Your feedback make us better.

{ 1 comment… read it below or add one }

ROOPNATH BANERJEE January 15, 2013 at 12:36 pm

KINDLY LET ME KNOW THE RATES OF FTXED DEPOSIT FOR A PERIOD OF 1 YEAR FOR PUBLIC SECTOR BANKS AS OF 15-01-2013.THANK YOU VERY MUCH.REGARDS,
ROOPNATH

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