In 2022, banks started increasing fixed deposit (FD) interest rates. And since then the FD interest rates offered by many banks are now in the range of 5- 8%. Banks also offer higher interest rates for senior citizens. Particularly for individuals seeking advantages like high liquidity, premature withdrawal options, nomination facilities, loan/overdraft options, etc, FDs are the ideal investment choice. Now, while the majority of big banks have increased their fixed deposit interest rates, they still fall short of the rates provided by small finance banks. Here are two banks offering 9% interest rate to senior citizens.

 

Unity Small Finance Bank 

 

For senior citizens, the bank offers FD interest rates between 4.5% and 9%. It currently provides senior citizens with an interest rate of 9% per annum on fixed deposits invested for terms of 181 and 501 days, respectively, while retail investors get 8.50% for the same terms, according to the bank website.

 

 

Suryoday Small Finance Bank

 

Suryoday Small Finance Bank has revised the interest rates on fixed deposits of less than Rs2 crore. According to the bank's official website, the new rates will take effect on 6 December 2022. The bank has raised its interest rates across all tenors as a result of the modification. The bank provides fixed deposits with maturities ranging from seven days to ten years at interest rates for the general public of 4.00% to 9.00% and for senior citizens of 4.50% to 9.59%.

 

 

Other Small Finance Banks

 

Utkarsh Small Finance Bank (SFB) offers a minimum rate of 8% to the general public and a maximum rate of 8.75% to senior citizens. 

 

Ujjivan Small Finance Bank (SFB) offers a maximum rate of 8% to the general public and 8.75% to senior citizens. 

 

Shivalik Small Finance Bank (SFB) offers a maximum rate of 7.50% to the general public and a maximum rate of 8.00% to senior citizens. 

 

Just like the commercial banks, small finance banks (SFB) are subject to Reserve Bank of India regulations. Deposits made with such small finance banks are covered up to Rs5 lakh under the Deposit Insurance Credit Guarantee Corporation (DICGC). 

 

The DICGC offers deposit insurance as well as savings, current, recurring, and other types of deposits. Deposits are therefore covered up to Rs5 lakhs.