Top 5 PSU Banks Offering Highest FD Rates Up to 8% To Senior Citizens; Check List Here

Fixed deposits are the most traditional and common investment scheme that is offered by financial institutions, especially banks. FDs are one of the main mediums of bank deposits book. But with time as capital market instruments have gained popularity, our investment mechanisms have diversed eventually.

But FDs remain a one-stop investment platform for investors who are not willing to bear risks and volatility. FDs in simple words are safe, risk-free and offer guaranteed interest rates. Senior citizens majorly benefit from FD schemes as banks offer them higher interest rates than compared to normal categories. That being said, public sector banks are offering FD rates up to 8% to elderlies currently.

Among the top five PSU banks that offer the highest FD rates to senior citizens are --- Canara Bank, Punjab National Bank, Bank of Baroda, Indian Bank and State Bank of India (SBI).

Here are the latest FD rates offered by these PSU banks.

1. Indian Bank:

Under its Supreme 400 Days scheme, this PSU Bank is offering as high as 8% rate to super senior citizens for FDs starting from Rs 10,000 to less than Rs 2 crore. While the rate is 7.75% for senior citizens. The tenure is 400 days.

Here, super senior citizens are those at 80 years of age and above. Moreover, senior citizens are those at the age of 60 years to below 80 years of age.

Further, the bank is offering 7.55% to senior citizens and 7.80% to super senior citizens under the Supreme 300 Days scheme.

The Supreme schemes are available till August 30, 2023.

2. Canara Bank:

The bank offers as high as 7.75% to senior citizens on 444 days tenure. The annualised interest yield for this tenure is 7.98%.

Also, the bank offers 7.50% on 1-year tenure, 7.40% on above 1 year to less than 2 years tenure; 7.35% on 2 years and above to less than 3 years maturity; 7.30% on 3 years and above to less than 5 years tenure; and 7.20% on 5 years to 10 years maturity period.

Canara Bank offers a 7% rate on 270 Days to less than 1 Year tenure to senior citizens. On shorter tenure, from 7 days to 269 days, the rate varies from 4% to 6.75%.

3. Punjab National Bank:

Just like Canara Bank, PNB also offers a 7.75% rate to senior citizens on 444 days tenure. The rate is 7.50% on above 2 years & up to 3 years tenure.

While the rate of interest comes at 7.30% on over 1 year to 443 days, 445 days to years, and above 5 years to 10 years tenure.

The bank is giving a 7.25% rate on 1 year tenure, and a 7% rate on above 3 years to 5 years tenure.

On shorter periods, FD rates vary from 4% to 6.30% on maturity periods from 7 days to less than 1 year.

4. Bank of Baroda:

A 7.75% rate is offered on 399 days tenure under Baroda Tiranga Plus Deposit Scheme to senior citizens. The rate is 7.50% on above 5 years to 10 years tenure; while the rate is much higher at 7.55% on above 2 years to 3 years tenure;

The bank also gives a 7.25% rate each on 1 year; above 1 year to 400 days; and above 400 days to 2 years maturities.

Also, the bank gives 7.15% on above 3 years to 5 years; and 6.75% on above 10 years (MACT/MACAD Court Order schemes only).

On shorter tenures, senior citizens earn from 3% to 6.25% on tenures from 7 days to less than 1 year.

5. State Bank of India (SBI):

The largest public sector bank is offering a 7.60% rate to senior citizens under its Amrit Kalash scheme which has a tenure of 400 days. The scheme is available till August 15, 2023.

Apart from this, SBI offers a 7.50% rate on 2 years to less than 3 years and 5 years and up to 10 years tenure. Further, the rate is 7.30% on 1 Year to less than 2 years tenure, and 7% on 3 years to less than 5 years tenure.

The bank's interest rates vary from 3.50% to 6.25% on shorter tenures from 7 days to less than 1 year.