Over 9% fixed deposit interest rates for senior citizens: Check these 7 small finance banks
Fixed deposits (FDs) are a favoured investment option among senior citizens for a variety of compelling reasons. Considering how continued market upheavals have left many investors, especially, senior citizens deciding between equities and debt instruments, many of them are now looking forward to earning from high-yield FDs issued by small finance banks (SFBs) that have helped many to gain high returns that not only help beat inflation but amass on more wealth for the remaining years of their lives. It’s not widely recognized that SFBs fall under the regulatory authority of the Reserve Bank of India (RBI).
These banks are subject to the provisions of the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, and several other related statutes. Deposits initiated with SFBs are safeguarded by a deposit insurance program that covers up to ₹5 lakh, which includes both the principal and interest amounts. Many SFBs are gaining repute owing to the high-interest rates they offer on FDs, especially to senior citizens owing to their risk-averse nature.
Some of these include: Unity Small Finance Bank presents an enticing interest rate of 9.50 per cent for Fixed Deposits maturing in 1001 days. Nonetheless, should you decide to withdraw your FD before its maturity date, a premature penalty of one per cent will be levied on the interest accrued during the period the deposit was held. This penalty serves as a deterrent for early withdrawals and helps the bank sustain its profitability.
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