Top 5-year FD rates for senior citizens : You can get interest up to 8% on these fixed deposits; check full list of banks
fixed deposits are preferred methods to save money. FDs are considered a reliable way to increase your investments as they provide fixed returns. Fixed deposits provide stability and security in contrast to stock market investments, which are susceptible to changes in market conditions.
ET Year-end Special Reads
Gold outshines D-St with 20% returns, but 2025 may be different
The year of the pause: How RBI maneuvered its policy in 2024
2024, the year India defeated China's salami-slicing strategy
What is a senior citizen fixed deposit?
According to the DCB Bank website, “Individuals 60 years of age and above are eligible as senior citizens as per the guidelines of Reserve Bank of India (RBI) for bank deposits. Senior Citizen Fixed Deposit is designed specifically for such individuals so that they can enjoy the extra benefits in their golden years. The interest rates on Senior Citizen Fixed Deposit are usually higher than the regular Fixed Deposit. It offers better returns and financial stability.”
When is premature withdrawal penalty on FDs not applicable?
According to the Bank of India website, “In case of the deposits which have been prematurely closed for renewal for a longer period than the remaining period of the original contract tenure, there shall be “No penalty” for the premature withdrawal irrespective of the amount of the deposit. No penalty for the premature withdrawal of Term deposits due to death of depositor/s.”
Some banks such as Indian Bank and RBL bank do not charge senior citizens for premature
Read more on economictimes.indiatimes.com
