Senior citizens prefer doing fixed deposits (FDs) over any other investment plans. This is because of a few reasons, like they get better interest rates than savings accounts, their money is safe, they don’t need to worry about markets, get income tax benefits, among others. They also get payouts on a monthly or quarterly basis to meet daily expenses. Some of the FD plans also provide insurance of up to Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
This article will talk about the FD interest rates provided by PSU banks to senior citizens on a 1-year FD. We will also calculate the maturity on Rs 5 lakh investment. Take a look:
State Bank of India (SBI) 1-year FD rate
The PSU bank provides a 6.75 per cent interest rate to senior citizens on a one-year FD scheme. If a depositor submits Rs 5 lakh in this plan, they can get Rs 5,34,614 on maturity.
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Bank of Baroda (BoB) 1-year FD rate
BoB offers a 7 per cent interest rate to senior citizens on a one-year FD scheme. If a depositor submits Rs 5 lakh in this plan, they can get Rs 5,35,930 on maturity.
Indian Overseas Bank
IOB provides a 7.10 per cent interest rate to senior citizens on a one-year FD scheme. If a depositor submits Rs 5 lakh in this plan, they can get Rs 5,36,456 on maturity.
Punjab National Bank (PNB)
PNB gives a 6.75 per cent interest rate to senior citizens on a one-year FD scheme. If a depositor submits Rs 5 lakh in this plan, they can get Rs 5,34,614 on maturity.
Central Bank of India
The Central Bank of India offers a 6.90 per cent interest rate to senior citizens on a one-year FD scheme. If a depositor submits Rs 5 lakh in this plan, they can get Rs 5,35,403 on maturity.
FAQs
Does FD provide higher interest rates than a savings account?
Yes, FDs give better interest rates than savings accounts.
Do senior citizens get better interest rates on FDs than general citizens?
Yes, most of the banks provide better interest rates on FDs to senior citizens than to general citizens.
Can depositors get tax benefits on FDs?
Yes, many FD plans have tax-saving benefits too.
What is the FD interest rate for senior citizens?
PSU banks offer up to 7.10 per cent interest rate to senior citizens on a 1-year FD plan.