Investing in fixed deposits is very popular among senior citizens, as it always keeps liquidity. This gives interest income from time to time.
Most banks have reduced interest rates on FDs after the Reserve Bank of India kept the key repo rate unchanged at a low of 4 per cent for over a year.
Despite the fall in interest rates, small private banks offer interest rates of up to 7 per cent on three-year FDs for senior citizens, according to data from BankBazaar.
Here are the FDs of top five private banks, which are offering the highest interest rates on three-year FDs for senior citizens.
Yes Bank offers 7 percent interest on three-year FDs for senior citizens. Among the private banks, this bank offers the best interest rate. An investment of Rs 1 lakh increases to Rs 1.23 lakh in three years.
RBL Bank offers 6.80 percent interest in three-year FDs for senior citizens. The investment of Rs 1 lakh increased to Rs 1.22 lakh in three years.
IDFC First Bank offers 6.25 percent interest on three-year FDs for senior citizens. The investment of Rs 1 lakh increased to Rs 1.20 lakh in three years.
Small private banks are offering higher interest rates for raising fresh deposits. Deposit Insurance and Credit Guarantee Corporation DICGC, a subsidiary of RBI, guarantees investment in fixed deposits up to Rs.5 lakh.
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