FD Rates: Top Banks offer up to 7.2% interest to Senior Citizens

Before opening a fixed deposit (FD), investors should compare rates across banks. Typically, longer-tenor deposits earn higher interest than shorter-term ones. Additionally, senior citizens above 60 usually receive better returns than regular investors.

Among private banks, HDFC Bank offers 7.10% to senior citizens on 18-21 month FDs. General depositors earn 6.6%. These rates came into effect on June 25, 2025. ICICI Bank matches this rate for tenors between 2-10 years. Its general citizens earn 6.6% on the same deposits.

Kotak Mahindra Bank also provides 7.1% for senior citizens on 23-month FDs. Regular depositors earn 6.6%. Federal Bank leads slightly higher, offering 7.2% to senior citizens on a 999-day tenor. General investors earn 6.7%. These rates became effective from October 17.

State-run banks also offer competitive returns. State Bank of India (SBI), the country’s largest lender, gives 6.95% interest to senior citizens on 2-3 year FDs. Regular investors get 6.45%. These rates came into effect on July 15.

Union Bank of India offers 6.6% for senior citizens on a three-year FD. General depositors earn 50 basis points less. Punjab National Bank (PNB) provides 7.10% on a 390-day deposit for senior citizens, effective September 1. Canara Bank offers 7% on a 444-day FD to senior citizens, while general investors earn 6.5%. These rates started on August 7, 2025.

Investors should note that interest rates vary with tenure and bank policies. Senior citizens often benefit from a 50-70 basis point premium compared to regular investors. Longer-term deposits tend to yield higher returns, but flexibility decreases.

Experts advise weighing interest rates alongside bank credibility, liquidity needs, and tenure. While private banks often offer slightly higher rates, government banks provide security and reliability.

For senior citizens, locking in high-interest FDs can boost retirement income. Comparing rates across tenors and banks ensures maximum returns.

In summary, senior citizens can earn up to 7.2% at Federal Bank on long-tenor FDs. Private banks like HDFC, ICICI, and Kotak offer 7.1%. Among government banks, PNB and Canara Bank offer competitive rates, while SBI and Union Bank provide stable returns.

By staying informed and checking updated rates regularly, investors can make smarter choices and enhance their fixed-income returns.