Top 10 Banks Promising Best Returns On FDs For Senior Citizens In 2021

In the current low-interest-rate scenario where interest rates on fixed deposits of banks are at an all-time low of around 5.5 per cent, investors especially senior citizens are hunting for other instruments under the debt category. When it comes to secure investments for senior citizens there is a range of instruments such as Senior Citizen Saving Scheme (SCSS), Pradhan Mantri Vaya Vandana Yojana (PMVVY), Post Office Monthly Income Scheme (POMIS), or Floating Rate Savings Bonds.

These instruments have a long maturity period which purely implies that senior citizens having long-term financial goals can step out to invest in. However, for varying investment goals investing in fixed deposits is always preferred to senior citizens as they have a maturity period ranging from 7 days to 10 years. So, keeping the guaranteed returns, flexible tenure, and deposit cover up to Rs 5 lakhs by DICGC in mind, here we have compiled the top 10 banks that are currently promising the best interest rates on fixed deposits (below Rs 2 Cr) for senior citizens.

Top 10 Small Finance Banks Promising Higher Returns On FDs For Senior Citizens

According to recent changes made under DICGC Act, depositors can claim the amount deposited in a bank within 90 days of the moratorium. Keeping this factor in mind here we have compiled the top 10 small finance banks that are currently offering higher returns on fixed deposits to senior citizens.

Sr No.	Banks	Interest Rate	Tenure	W.e.f.
1	North East Small Finance Bank	7.50%	777 days	April 19, 2021
2	Ujjivan Small Finance Bank	7.25%	2 years to 5 years	March 5, 2021
3	Jana Small Finance Bank	7.25%	3 years to 5 years	07.05.2021
4	Utkarsh Small Finance Bank	7.25%	700 Days	July 1, 2021
5	Fincare Small Finance Bank	7.25%	59 months 1 day – 66 months	July 29, 2021
6	ESAF Small Finance Bank	7.00%	365 days & 366 days	02.05.2021
7	Equitas Small Finance Bank	7.00%	5 years 1 day to 10 years	June 1, 2021
8	Suryoday Small Finance Bank	6.75%	Above 3 Years to less than 5 Years	June 21, 2021
9	Capital Small Finance Bank	6.75%	900 Days	June 3, 2021
10	AU Small Finance Bank	6.75%	60 Months 1 Day to 120 Months	June 23, 2021
Source: Bank Websites

Top 10 Private Banks Offering Higher Returns On FDs For Senior Citizens

Here are the most recent interest rates on fixed deposits provided to senior citizens by the top 10 leading private sector banks of India.

Sr No.	Banks	Interest Rate	Tenure	W.e.f.
1	Yes Bank	7.25%	5 years to less than equal to 10 years	June 3, 2021
2	RBL Bank	7.00%	60 months to 60 months 1 day	July 2, 2021
3	DCB Bank	7.00%	36 months to More than 60 months to 120 months	May 15, 2021
4	IndusInd Bank	6.50%	1 Year to below 1 Year 6 Months to Above 3 years upto 61 months	July 23, 2021
5	IDFC First Bank	6.50%	3 years 1 day – 5 years	May 1, 2021
6	Axis Bank	6.50%	5 years to 10 years	22.06.2021
7	ICICI Bank	6.30%	5 years 1 day to 10 years	October 21, 2020
8	HDFC Bank	6.25%	5 years 1 day – 10 years	May 21, 2021
9	Bandhan Bank	6.25%	1 year to 18 months to less than 3 years	June 7, 2021
10	Kotak Mahindra Bank	5.75%	5 years and above upto and inclusive of 10 years	July 23, 2021
Source: Bank Websites

Top 10 Public Sector Banks Providing Higher Returns On FDs For Senior Citizens

For deposits of less than Rs 2 Cr here are the top 10 government banks offering the best interest rates on fixed deposits for senior citizens.

Sr No.	Banks	Interest Rate	Tenure	W.e.f.
1	Bank of Baroda	6.25%	5 years to 10 years	16 November 2020
2	State Bank of India	6.20%	5 years and up to 10 years	08.01.2021
3	Union Bank of India	6.10%	5 years to 10 years	09.07.2021
4	Canara Bank	6.00%	3 years to 10 years	08.02.2021
5	Punjab & Sind Bank	5.80%	3 years to 10 years	16.05.2021
6	Punjab National Bank	5.75%	3 years to 10 years	01.05.2021
7	Indian Bank	5.75%	3 years to 5 years	05.02.2021
8	IDBI Bank	5.80%	3 years to 5 years	July 14, 2021
9	Indian Overseas Bank	5.70%	444 days to 3 years and above	09.11.2020
10	Central Bank of India	5.50%	5 years to 10 years	10.07.2021
Source: Bank Websites