Senior Citizens Can Fetch Highest Interest Rate Of 8.77% On FDs: Comparison Of 4 Banks

Soon after Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) hikes repo rate by 50 basis points (bps) to 4.19%, many leading private, public, and non-banking financial companies resorted to interest rate hike in their fixed deposits. The various banks offer attractive interest rates to senior citizens. Given below are four banks that have been offering attractive interest rates to senior citizens on fixed deposits:

1. Tamil Nadu Transport Development Finance Corporation

Also lso known as TNTDFC, it is offering attractive interest rates on Fixed Deposits to senior citizens. TNTDFC is a wholly owned by Tamil Nadu Government. It has been registered with Reserve Bank of India as a Non-Banking Finance Company. It mobilizes investors' funds through several attractive deposit schemes. It offers two deposits schemes namely Periodic Interest Payment Schemes or PIPS and Money Multiplier Scheme or MMS.

Periodic Interest Payment Schemes: Under this scheme, interest shall be paid either monthly, quarterly, or annually. The minimum amount of deposit accepted will be Rs 50,000, according to the website. Senior citizens will need to submit their age proof. It offers a higher interest rate of 8.77% annually for the period of 60 months.

Others				Senior Citizen
Period (Months)	Monthly (%)	Quarterly (%)	Annually (%)	Monthly (%)	Quarterly (%)	Annually (%)
24	-	7.25%	-	-	7.50%	-
36,48 &	7.75%	7.75%	7.98%	8.25%	8.25%	8.51%
60	8.00%	8.00%	8.24%	8.50%	8.50%	8.77%

Money Multiplier Scheme: If you opt for this scheme, the interest will be compounded quarterly at the appropriate rate of interest and will be paid on maturity along with principal amount. The minimum amount of deposit acceptable is Rs 50,000, according to the website. The maximum interest rate under this scheme is 8.50% for 60 months period.

Others			Senior Citizen
Period	Basic	Effective	Basic	Effective
(Months)	Rate	Yield p.a	Rate	Yield p.a
	p.a	(%)	p.a	(%)
	(%)		(%)
12	7	7.19	7.25	7.45
24	7.25	7.73	7.5	8.01
36	7.75	8.63	8.25	9.25
48	7.75	8.99	8.25	9.66
60	8	9.72	8.5	10.46

2. Suryoday Small Finance Bank

It is a new age bank that went live on January 23rd 2017. Its endeavour is to bring the best banking solutions to the 'banked', 'under-banked' and the 'un-banked' sections of the society, according to its official website. Currently, the bank is offering the highest interest rates to senior citizens under the tenor of 999 days at 7.99% for FDs of amounts Rs 2 crore and above. The new rates got effective on June 6, 2022. Check the table below for interest rates available in other tenors:

Period	Interest Rate	Annualised Yield°	Senior Citizen Rate #	Annualised Yield°
	(Per Annum)	(%)	(Per Annum)	(%)
7 days to 14 days	3.25%	3.25%	3.75%	3.75%
15 days to 45 days	3.25%	3.25%	3.75%	3.75%
46 days to 90 days	4.25%	4.25%	4.75%	4.75%
91 days to 6 months	4.75%	4.75%	5.25%	5.25%
Above 6 months to 9 months	5.25%	5.35%	5.75%	5.88%
Above 9 months to less than 1 Year	5.75%	5.88%	6.25%	6.40%
1 Year to 1 Year 6 Months	6.50%	6.66%	7.00%	7.19%
Above 1 Year 6 Months to 2 Years	6.50%	6.66%	7.00%	7.19%
Above 2 years to 998 days	7.00%	7.19%	7.50%	7.71%
999 Days	7.49%	7.70%	7.99%	8.23%
1000 days to 3 Years	7.00%	7.19%	7.50%	7.71%
Above 3 Years to less than 5 Years	6.50%	6.66%	7.00%	7.19%
5 Years	6.75%	6.92%	7.25%	7.45%
Above 5 years to 10 years	6.00%	6.14%	6.50%	6.66%

3. Jana Small Finance Bank

3. Jana Small Finance Bank: It is one of the leading Small Finance Banks of India in terms of assets under management and deposit size as at March 31, 2020. Jana Small Finance Bank has the second most geographically diversified portfolio with a pan-India presence among all Small Finance Banks in India as at March 31, 2020 (Source: IRR Report).

The bank is offering attractive interest rates to citizens on their FDs. It is offering the maximum interest rates to senior citizens under the tenor of less than 3 years to more 5 years at 8.15% p.a for deposits less than Rs 2 crore. The minimum interest rate begins for FDs for the tenure of 7days-14 days at 3.30% p.a. For FDs for the tenor of 5 years to 10 years, the interest rate is 6.80%.

 

4. Ujjivan Small Finance Bank

Ujjivan Financial Services Limited (UFSL) commenced operations as an NBFC in 2005, with the mission to provide a full range of financial services to the 'economically active poor' who were not adequately served by financial institutions. The bank is offering the highest interest rates for the tenor of 42 months and 1 day to 60 months and 990 days for deposits under Rs crore at the rate of 7.70%. Check the table below for more details:

TENURE	Interest Rate (p.a.)  (Under Rs. 2 Crores)
7 Days to 29 Days	2.90%
30 Days to 89 Days	3.50%
90 Days to 179 Days	4.25%
6 Months	5.00%
> 6 Months to < 9 Months	4.75%
9 Months	5.05%
> 9 Months to < 12 Months	6.50%
12 Months	6.70%
12 Months and 1 Day to 15 Months	6.00%
15 Months and 1 Day to 18 Months	7.00%
18 Months and 1 Day to < 24 Months	6.60%
24 Months	7.10%
24 Months and 1 Day to 989 Days	6.50%
990 Days	7.20%
991 Days to 36 Months	6.50%
36 Months and 1 Day to 42 Months	6.25%
42 Months and 1 Day to 60 Months	7.20%
60 Months and 1 day to 120 Months	6.00%
Additional Interest Rate for Senior Citizens	0.50%