These banks increased the interest rate

On Friday, Suryoday Small Finance Bank (SSFB) increased its FD rate on senior citizen deposits of less than Rs 2 crore to 9.6 per cent for 5 years. For regular customers, the bank is giving 9.1 per cent interest. Unity Small Finance Bank (USFB) is also offering FD rates of up to 9.5 per cent to senior citizens and up to 9 per cent for others on deposits below Rs 2 crore. Apart from this, SBI is offering up to 7.6 per cent interest while HDFC Bank is offering up to 7.75 per cent interest to senior citizens. Axis Bank is paying interest up to 7.95 percent while IDFC First Bank is paying interest up to 8.25 percent.

Amount up to 5 lakhs only secured

Bank FD rates are increasing and there is a possibility of further increase in them. If RBI increases the repo rate again in future, then this is a good opportunity for senior citizens and regular customers to book FDs at higher rates. FDs not only provide guaranteed returns but are also considered safer as compared to various market linked products.

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However, before investing you must know that only up to Rs 5 lakh is guaranteed under the Deposit Insurance and Credit Guarantee Corporation (DICGC) regulations of the RBI. This means that in case of bank failure, your deposits up to Rs 5 lakh in the bank will be safe.

How much should you invest?

The limit of Rs 5 lakh includes interest as well as principal amount. Banks are also required to give money back to depositors within 90 days in case of bank failure. To avail the benefits of currently high FD rates and get guaranteed returns, senior citizens and others should invest only that amount in the bank for which the interest is not more than Rs 5 lakh. For depositing more amount, the customer can open multiple FD accounts in different banks to be safe.

The post Senior Citizen Best FD Rates: These two banks are giving more than 9.5% interest on FD to senior citizens, check details first appeared on Rightsofemployees.com.