Senior Citizen Fixed Deposit interest rate hikes to stop? Check FD rates of 30 banks to invest now

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While several banks have been increasing their Fixed Deposit rates for senior citizens and others since last year, it seems the FD rate hike cycle may be over, at least for now.

The FD interest rate hikes have coincided with a series of repo rate hikes announced by the Reserve Bank of India. Since May 2022, the RBI has raised the repo rate by 250 basis points in a bid to fight inflation. However, in the first Monetary Policy Committee (MPC) meeting of the current financial year in April, the central bank kept the repo rate unchanged at 6.5%. In the ongoing meeting also, which will be declared tomorrow, the RBI is expected to keep on the pause button on the repo rate hike.

While repo rate hikes have led to an increase in fixed deposit interest rates, RBI deciding to pause the key lending rate hike would mean banks may not further increase FD rates. In future, if the repo rates go down, banks may even cut FD interest rates. Some bankers, however, feel that despite the repo rate pause, there is still room for an increase in FD interest rates.

Also Read: Should Senior Citizens change their bank for higher Fixed Deposit interest rate?

For investors interested in starting fixed deposits, it will be better to do so at the currently available higher interest rates.

While public sector banks are currently offering FD rates between 7% to 8%, some small finance banks are offering over 9% interest on FD to senior citizens as well as others. Following is a list of banks and the highest Fixed Deposit interest rates they are offering:

Bank FD NamesFor General Citizens (p.a.)For Senior Citizens (p.a)
RBL Bank3.50% to 7.80%4.00% to 8.30%
IDFC First Bank3.50% to 7.75%4.00% to 8.25%
KVB Bank4.00% to 7.50%5.90% to 8.00%
Canara Bank4.00% to 7.25%4.00% to 7.75%
Punjab National Bank3.50% to 7.25%4.00% to 7.75%
Bank of Baroda3.00% to 7.25%3.50% to 7.75%
Kotak Mahindra Bank2.75% to 7.20%3.25% to 7.70%
Axis Bank3.50% to 7.10%3.50% to 7.85%
HDFC Bank3.00% to 7.25%3.50% to 7.75%
State Bank of India3.00% to 7.10%3.50% to 7.60%
ICICI Bank3.00% to 7.10%3.50% to 7.60%
IDBI Bank3.00% to 6.75%3.50% to 7.25%
Yes Bank3.25% to 7.75%3.75% to 8.25%
IndusInd Bank6.25% to 7.75%6.75% to 8.25%
UCO Bank2.90% to 7.15%2.90% to 7.20%
Central Bank of India3.50% to 6.75%4.00% to 7.25%
Indian Bank2.80% to 6.70%3.30% to 7.20%
Indian Overseas Bank4.00% to 7.25%4.50% to 7.75%
Bandhan Bank3.00% to 8.00%3.75% to 8.50%
Suryoday Small Finance Bank4.00% to 9.10%4.50% to 9.60%
Ujjivan Small Finance Bank3.75% to 8.25%4.25% to 8.75%
ESAF Small Finance Bank4.00% to 8.50%4.50% to 9.00%
Unity Small Finance Bank4.50% to 9.00%4.50% to 9.50%
Jana Small Finance Bank3.75% to 7.35%4.45% to 8.05%
Utkarsh Small Finance Bank4.00% to 8.25%4.75% to 9.00%
Equitas Small Finance Bank3.50% to 8.50%4.00% to 9.00%
Fincare Small Finance Bank3.00% to 8.51%3.60% to 9.11%
AU Small Finance Bank3.75% to 8.00%4.25% to 8.24%
Capital Small Finance Bank3.50% to 7.60%4.15% to 8.25%
North East Small Finance Bank3.00% to 8.00%3.75% to 8.75%

For investors with low-risk appetite, it is better to spread their FDs across multiple scheduled banks in such as way that the cumulative deposits with each of those banks do not exceed Rs 5 lakh.


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