Fixed deposit investments are the best debt option for investors who want to build long-term wealth without relying on market returns and have a low risk tolerance capacity.
Fixed deposit investments are the best debt option for investors who want to build long-term wealth without relying on market returns and have a low risk tolerance capacity. Fixed deposits are year-round investments that provide investors with a variety of benefits such as tax advantages, liquidity, flexible maturities ranging from seven days to ten years, low-cost investment options, and special benefits for senior citizens. Interest rates on fixed deposits have been rising since the RBI raised the repo rate at its June MPC meeting. As a result, older adults can now receive fixed-income returns that outpace inflation during their golden years. In June, retail inflation, as measured by the Consumer Price Index (CPI), fell to 7.01 percent. In this article, we’ll look at three DICGC-insured fixed deposits that also offer senior citizens returns of up to 8.15 percent, which has a significant impact on inflation and allows them to earn real returns on their fixed deposit investments.
Jana Small Finance Bank
On June 15, 2022, the bank updated its fixed deposit interest rates, and as a result, it is now offering senior citizens fixed deposits with maturities ranging from seven days to ten years at interest rates ranging from 3.30 percent to 6.80 percent. Senior citizens can earn an interest rate of 8.05 percent on deposits maturing in 1 to 3 years, and a maximum interest rate of 8.15 percent on term deposits maturing in 3 to 5 years, which is not only much higher than the inflation rate but also the highest interest rate among bank fixed deposits for senior citizens.
North East Small Finance Bank
Recurring deposits (RD) are a type of fixed deposit in which investors can make monthly deposits rather than investing a lump sum, and RDs offer rates comparable to fixed deposits. North East Small Finance Bank is offering an interest rate of up to 8% on deposits maturing in two years on RD. This is the only small finance bank in the financial sector that offers the highest interest rate on RD of up to 8% to the elderly. The bank last changed the interest rates on its deposit accounts on April 1, 2022.
Suryoday Small Finance Bank
Suryoday Small Finance Bank last changed the interest rates on its fixed deposits on June 6, 2022. The bank promises older customers interest rates ranging from 3.75 to 6.50 percent on fixed deposits with maturities ranging from 7 days to 10 years. However, on term deposits maturing in 999 days, the bank offers the highest interest rate of 7.99 percent to senior residents, which is comparable to our topic 3 bank deposits with interest rates of around 8%.
