Senior Citizen Fixed Deposit: More time to book FD at up to 9.6% Interest Rate!
The recent decision of the Reserve Bank of India to keep the repo rate unchanged has allowed more time for senior citizens and other bank customers to book fixed deposits at higher rates. At present, several banks are providing over 9% interest on FD to senior citizens as well as general customers (see below).
As the repo rate hike is paused by the central bank, experts say it is a good time to lock fixed deposits (FD) into the best available rates. At the current deposit rates, individuals should lock in FDs at the highest interest slab rate.
FE Money earlier reported that the average interest rates on outstanding rupee deposits with banks have risen for 15 straight months, which is now visible in bank Fixed Deposit rates. For special tenure deposits, several banks are offering interest rates of over 7% and small finance banks are offering even higher interest over 9%. Some non-banking financial companies are also offering interest rates on fixed deposits over 8%.
According to Naveen Kukreja, co-founder and CEO of Paisabazaar, Fixed Deposit rates of banks are still attractive. He told FE after the recent RBI MPC meeting that the central bank is expected to reduce the repo rates after 6-9 months. He suggests depositors should book Fixed Deposits offering higher yields, especially if those yields are offered for longer tenures and match their investment horizons.
Also Read: Rs 15 lakh in SCSS vs Retirement Mutual Fund: Income difference will surprise senior citizens
Individuals seeking higher fixed deposit rates can consider small finance banks also. These banks are offering over 9% interest on some tenors.
According to BankBazaar, following small finance banks are currently offering up to 9% or more interest on FD to
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