Here Are Fixed Deposits That Pay Up To 8% Interest To Senior Citizens
Senior citizens can park a small portion of their debt portfolio in these DFs for better returns.

Seniors who depend on fixed bank deposits (FD) for their monthly cash flows have had a difficult time over the past year or so due to falling interest rates. Interest rates on small savings plans have also dropped dramatically. This is because the Reserve Bank of India (RBI) has consistently lowered repurchase rates. Banks have followed the same path and have gradually reduced interest rates on fixed deposits through holdings. Still, there are some banks that offer attractive three-year DF rates for seniors.
Higher rates offered by smaller private banks
Up to five private sector banks and two small financial banks offer DFs at rates above 7 percent for a three-year period. RBL Bank, IDFC First Bank, DCB Bank, IndusInd Bank and YES Bank offer 7.25-8 percent interest in their three-year DFs, according to data compiled by BankBazaar.
Investments in fixed deposits of up to Rs 5 lakh are guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI.
The best rates on 3 year FDs for senior citizens
Bank | Annual Rate of Interest | What Rs 1 lakh grows in three years to (Rs) |
RBL Bank | 8.00% | 126,824 |
IDFC First Bank | 7.75% | 125,895 |
AU Small Finance Bank | 7.75% | 125,895 |
DCB Bank | 7.45% | 124,788 |
Induslnd Bank | 7.25% | 124,055 |
Yes Bank | 7.25% | 124,055 |
Ujjivan Small Finance Bank | 7.00% | 123,144 |
Bandhan Bank | 6.85% | 122,600 |
Standard Chartered | 6.50% | 121,341 |
Karur Vysya Bank | 6.35% | 120,805 |
Data as on 22 July 2020 in respective banks website. Interest rate on three-year term deposits (for senior citizens of 60-80 years age, deposit amount below Rs 1 crore) of all listed (BSE) public & private banks and foreign banks considered for data compilation. banks for which verifiable data is not available is not considered. for all FDs, quarterly compound is assumed. minimum investment amount may vary depending on types of term deposits. Compiled by Bankbazaar.com
Axis Bank, ICICI Bank and HDFC Bank offer three-year, 5-percent, 5.85-percent and 5.70-percent respectively in DF for seniors, while the State Bank of India (SBI) and the Bank of Baroda (BOB) they pay 5.80 percent and 5.60 percent, respectively. The minimum investment amount varies from Rs 100 to Rs 20,000 for three-year fixed deposits in banks. Seniors can park a small portion of their debt portfolio in these DFs for better returns.