3 banks offering above 9% interest rate on fixed deposits to senior citizens

Banks have been increasing the fixed deposit rates since May 2022 after the Reserve Bank of India started hiking the repo rate. It is a good phase for cautious investors with banks increasing the interest rates on fixed deposits. However, many big banks are yet to reach the rate of 9%, while these three small finance banks are now offering fixed deposit interest rates of 9 percent and higher. Most small finance banks are DICGC insured which means your deposits up to Rs 5 lakh are insured by the government like any other private or public sector banks.

Unity Small Finance Bank
The bank offers senior citizens fixed-term deposits with interest rates ranging from 4.50% to 9.50%. The highest interest rate of 9.50% is offered on tenure of 1001 days. The bank also offers 9.25% interest on tenure of 181-201 Days and 501 Days. The rates are applicable from February 15, 2023.
Fixed deposit and recurring deposit early withdrawals are subject to a premature penalty of 1.00% of the rate in effect during the period the deposit was held by the bank, or the negotiated rate, whichever is lower.

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Utkarsh Small Finance Bank
The bank offers senior citizens fixed-term deposits with interest rates ranging from 4.75% to 9%. The highest interest rate of 9% is offered on tenure of 700 days. The rates are applicable from February 27, 2023.
Premature withdrawal is subject to a penalty of 1% (not applicable for closure within 7 days), which is 1% below the card rate in effect on the day of deposit for the time the deposit has been held by the bank or 1% below the contractual rate, whichever is lower.

Fincare Small Finance Bank
For balances under Rs 2 crore, Fincare Small Finance Bank will now provide fixed deposit interest rates between 3.60% to 9.01% for senior citizens. The highest interest rate of 9.01% is offered on tenure of 1001 days. These rates are applicable from March 24, 2023.