💰 Banks Raising Interest Rates for Senior Citizens
📈 Higher FD Rates Despite Market Trends
- ICICI Bank recently raised its fixed deposit (FD) rate for senior citizens to 7.2% on deposits from 2 years to under 5 years — even as many lenders were trimming rates.
- Suryoday Small Finance Bank went against the market trend to offer senior citizens up to 9.10% interest on selected FD tenures — one of the highest in the industry.
- IndusInd Bank has boosted FD interest rates, giving senior citizens up to 8.25% on some deposit tenures.
- Reports show several banks, including Bank of Baroda, DCB bank, South indian bank, Federal bank, Utkarsh SFB, and Suryoday SFB, now offering high‑yield FD rates (often 8%+) for senior savers.
- Even though larger banks have trimmed rates after RBI policy changes, senior citizens continue to get premium rates (often above 8%) compared with regular depositors.
- Fixed deposits are a preferred, safe investment for retirees and older investors who prioritize steady income and capital protection.
- Higher rates — especially in small finance banks — offer an attractive alternative to low‑yield savings accounts.
- ✔️ Many banks are boosting FD interest rates for senior citizens to attract deposits.
- ✔️ Some lenders offer very competitive returns (8%–9.1%), especially on medium‑term FDs.
- ✔️ Even with overall rate cuts in the financial system, older savers are still being rewarded with bonus interest premiums compared with regular customers.