FD or fixed deposit is considered the safest way of investment, especially for senior citizens, because after retirement, they don’t want to chase high-risk investments; rather, they prefer fixed returns. Banks and financial institutions already offer better interest rates to senior citizens on FDs, and some of them offer schemes that can potentially double their money in 10 years. These schemes are best for risk-averse retirees.
In this article, we will see which bank gives better interest rates on FDs to senior citizens, which can help significantly grow their savings over a decade.
Bank of Baroda
Currently, Bank of Baroda (BoB) offers a 6.75 per cent interest rate on its 1-year FD scheme to senior citizens. The bank provides 6.75 per cent, 6.90 per cent, and 7 per cent interest rates on 3-year, 5-year, and 10-year FD schemes, respectively.
If a senior citizen wants to double their investment in 10 years, they can do so by depositing their money in a 10-year FD scheme. Let’s understand with an example.
Suppose Mr Ramesh deposited Rs 5,00,000 in BoB’s FD scheme for 10 years; he can easily earn Rs 5,00,798.67 interest (at 7% interest rate) on his investment. This means the maturity amount would be Rs 10,00,798.67.
State Bank of India
Now, there is one more PSU bank that is currently offering a similar rate of interest in 10-year FD. The largest PSU bank in India, the State Bank of India (SBI), is giving a 7.05 per cent interest rate on its 10-year FD scheme to senior citizens.
The bank offers 6.75 per cent, 6.80 per cent, and 7.05 per cent interest rates to senior citizens on its 1-year, 3-year, and 5-year FDs, respectively.
Since the FD interest rate is higher than the BoB’s, senior citizens can earn more interest on their investment if they choose SBI’s scheme.
Again, let’s understand with an example.
Suppose Mr Suresh deposited Rs 5,00,000 in BoB’s FD scheme for 10 years; he can easily earn Rs 5,00,798.67 interest (at 7.05% interest rate) on his investment. This means the maturity amount would be Rs 10,05,728.40.
Other special FD schemes by Bob and SBI
The BoB is providing a special FD scheme to senior citizens. The tenure of the scheme is above 5 years and up to 10 years, and it is giving a 7 per cent interest rate currently. On the same scheme, SBI is giving a 7.05 per cent interest rate.
Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.
