If you’re planning to invest in a Fixed Deposit (FD), banks are offering some of the best deals for senior citizens on 3-year FDs. These FDs are an excellent way for seniors to build an emergency fund due to their stability and guaranteed returns.
One of the key benefits of an FD is liquidity, as you can close it whenever needed and get the money transferred to your bank account. However, the interest earned on FDs is taxable. Currently, both private and public sector banks are offering interest rates as high as 7.75% on 3-year FDs for senior citizens. Here’s a look at the top 10 banks and their interest rates on 3-year FDs for senior citizens, along with how much interest you can earn on an investment of ₹1,00,000.
Top Bank Offers on 3-Year FDs for Senior Citizens
- Bank of Baroda
- Interest Rate: 7.75%
- Return on ₹1,00,000 after 3 years: ₹1.26 lakh
- Axis Bank
- Interest Rate: 7.60%
- Return on ₹1,00,000 after 3 years: ₹1.25 lakh
- HDFC Bank, ICICI Bank, and Punjab National Bank
- Interest Rate: 7.50%
- Canara Bank
- Interest Rate: 7.30%
- Return on ₹1,00,000 after 3 years: ₹1.24 lakh
- State Bank of India (SBI) and Bank of India
- Interest Rate: 7.25%
- Union Bank of India
- Interest Rate: 7.00%
- Return on ₹1,00,000 after 3 years: ₹1.23 lakh
- Indian Bank
- Interest Rate: 6.75%
- Return on ₹1,00,000 after 3 years: ₹1.22 lakh
Quick Overview
| Bank | Interest Rate (3-Year FD) | Return on ₹1,00,000 After 3 Years |
|---|---|---|
| Bank of Baroda | 7.75% | ₹1.26 lakh |
| Axis Bank | 7.60% | ₹1.25 lakh |
| HDFC, ICICI, Punjab National Bank | 7.50% | ₹1.25 lakh |
| Canara Bank | 7.30% | ₹1.24 lakh |
| State Bank of India, Bank of India | 7.25% | ₹1.23 lakh |
| Union Bank of India | 7.00% | ₹1.23 lakh |
| Indian Bank | 6.75% | ₹1.22 lakh |
Benefits of Investing in FD for Senior Citizens
- Stable Returns: FDs offer guaranteed returns, making them a reliable option for seniors.
- Emergency Fund: FDs are easily accessible, making them a good option for building emergency funds.
- Tax Implications: Be aware that interest earned on FDs is taxable.
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