Fixed deposits are a better option for a safe investment. Interest is paid by the bank on the fixed deposit. Senior citizens get extra interest as compared to normal. Returns on fixed deposits have come down in the last few years. Because of this senior citizens are also getting lower returns on deposits than before.
0.75 percent additional interest rate: However, currently Yes Bank is offering 0.75 per cent additional interest rate on FDs for senior citizens as compared to normal. The interest rate on Yes Bank FD is higher as compared to major banks like SBI, HDFC Bank and ICICI Bank. Especially on deposits of 3 to 7 years tenor, the bank is getting the best returns.
Yes Bank is offering 7 per cent interest rate to senior citizens for a tenure of 3 to 10 years, which is an additional 0.75 per cent as compared to the normal rate of 6.25 per cent. At the same time, for the minimum tenure of 7 days to 14 days, the elderly get interest at the rate of 3.75 per cent, which is 0.50 per cent more than the normal rate of 3.50 per cent.
Other Banks: On the other hand, for senior citizens, SBI offers an interest rate of 5.95 per cent on tenures ranging from 3 years to less than 5 years. At the same time, interest is given at the rate of 6.30 percent for the tenure of 5 years and 10 years.
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HDFC Bank and ICICI Bank offer an interest rate of 6.35 per cent to senior citizens on FDs below Rs 2 crore. These interest rates are available for tenures above 5 years and up to 10 years. Both the banks are giving interest at the rate of 5.95 percent on the tenure of 3 years 1 day to 5 years.