Fixed Deposits: Unity SFB, Equitas, SBM, PNB and others - complete list of 20 banks with highest FD rates

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Suryoday Small Finance Bank offering rate of 8.65% p.a. In the scheduled private sector banks, SBM Bank takes the lead with the best FD interest rate of 8.25% p.a. for tenures exceeding 3 years 2 days but less than five years.

As for scheduled public sector banks, Punjab & Sind Bank offers the highest FD rate, reaching up to 7.40% p.a. for a tenure of 444 days. Senior citizens in India enjoy advantageous perks in the realm of fixed deposits.

In contrast to regular FDs, they have the potential to earn an additional 50-80 basis points (bps) on their deposits, leading to a substantial increase in returns, particularly for extended tenures. To illustrate, while a standard 5-year FD may yield 8% p.a., a senior citizen FD could generate returns of 8.50% p.a. or even 8.80% p.a., depending on the banking institution.

Currently, numerous banks and small finance banks (SFBs) entice senior citizens with FD rates reaching up to 9.50% p.a. This rate is notably appealing, especially in the current economic climate marked by rising interest rates. These FD investments boast inherent flexibility.

Senior citizens have the liberty to choose FD tenures spanning from 1 year to 10 years, enabling them to align their investments with specific needs and goals. For instance, opting for a shorter tenure with monthly interest payouts is ideal for those seeking regular income. Conversely, selecting a longer tenure with compounded interest is a strategic choice for those with long-term financial objectives, aiming for maximum returns.