After the Reserve Bank of India (RBI) increased repo rates by 140 points in the previous three months to 5.4%, a number of banks increased the interest rates on their fixed deposit products. Small depositors, who are mostly retirees and who depend on interest from FD and bank deposits as their main source of income, are relieved by the development.
For the investment security that these institutions provide, the majority of senior citizens choose fixed deposits to save their life savings. Banks increase the interest rates on fixed deposits for senior citizens by 30–40 basis points. Depending on the deposit amount and maturity duration, this premium can occasionally be considerably greater.
Let’s look at few banks that pay these senior individuals who deposit money significant interest rates.
IndusInd Bank: For borrowers over 60, the private lender’s Senior Citizen Scheme offers higher interest rates. It was created especially for senior persons.
On deposits of less than Rs 2 crore, elderly persons receive 7.50% on the following maturity periods: 1 year 6 months to below 1 year 7 months, 1 year 7 months to below 2 years, and 2 years to below 2 years. This offer is not applicable to NRO deposits. 6 Months, 2 Years, or Less than 6 Years Indus Tax Saver Scheme, 9 Months, 2 Years, 9 Months to Below 3 Years, 3 Years to Below 61 Months, 61 Month and Above (5 years).
DCB Bank: The lender offers senior citizens 7.10% interest on fixed-rate debt (FD) with maturities ranging from 18 months to less than 700 days, 700 days to less than 36 months, 36 months to more than 60 months, and more than 60 months to 120 months.
RBL Bank: Known for having some of the highest FD rates, the bank gives seniors access to up to 7.25% on deposits under Rs 2 crore with maturities between 24 and 36 months. On deposits under Rs 2 crore with maturities of 36 months to less than 60 months, 60 months to 60 months 1 day, and Tax Savings Fixed Deposit, the bank offers elderly citizens 7.05% interest rates (60 months).
Kotak Mahindra Bank FD Rates: As of September 6, interest on Kotak Mahindra Bank FDs maturing in 390 days to under 23 months will increase to 6%. With maturities ranging from 23 months to under two years, the bank will now provide fixed deposits at an interest rate of 6.10 percent. The lender raised interest rates on FDs with maturities between two and ten years to six percent. FD rates at a rate of 6.10 percent for durations of 23 months to under two years.