Meanwhile, fixed deposit interest rates have touched a lucrative 9 per cent in small finance banks. YES Bank offers a whopping 8 per cent interest rate to senior citizens.

Senior citizens can even earn an additional interest rate of 0.50 per on fixed deposits. You can get an interest of up to 7.2 per cent on fixed deposits in Kotak Mahindra Bank. Several private sector lenders, including HDFC Bank and ICICI Bank give interest rates of up to 7.1 per cent on FDs. Just a year ago State Bank of India ( SBI) was offering the highest rate of only 5.5 per cent on FDs, now it offers an interest rate of up to 7.10 per cent. Rising interest rates in the last year have made fixed deposits (FDs) attractive.

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