A lot of private and government banks are offering relatively higher rates of interest on fixed deposits to all the senior citizens of the country than the middle aged citizens. Banks like State Bank of India, Punjab National Bank have become prime choices for all the senior citizens to put their money in. But running them in the markets are small private banks like Yes Bank, RBL Bank, and DCB Bank. These banks have given a tough competition to all the big banks by giving their senior citizens’ customers a higher rate of interest, up to 7.50 percent on their three-year Fixed Deposits. The Yes Bank is offering the highest interest rate for three-year FDs, of 7.50%. DCB Bank joins the league and is offering an interest rate of 7.45 perfect. The RBL Bank does not stay behind and is offering a 7.25 percent interest rate on the three-year FDs of Senior citizens.
Contrary to the high-interest rates offered by these small private lenders, the leading private banks are offering very low-interest rates on their three-year FDs. Axis Bank is offering an interest rate of 5.9 percent to all their senior citizen customers having a three-year fixed deposit, whereas, Kotak Mahindra is offering 5.25 percent interest for the three-year FDs deposited by Senior citizens. Some of the other leading private banks like ICICI Banks and HDFC Bank are also not offering a high rate of interest. Their rate of interest is stagnant at 5.65 percent.
In such a situation, the small finance banks are also not left behind. AU Small Finance Bank is offering their senior citizens’ customers holding a three-yer FD an interest rate of 7.25 percent and Ujjivan Small Finance Bank is offering a 6.55 percent interest rate for same tenure FDs in the account of senior citizens. The senior citizens of the country now have to decide where to put their money in, to get the best interest rates and maximum benefits.