Senior Citizen FD Rates: Which Bank Offers The Highest Interest Rate In March 2025 – News18
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Banks and NBFCs offer FD interest rates of 2.50 to 9.10 per cent p.a. to senior citizens on tenures ranging from 7 days to 10 years.
Senior Citizens FDs are exclusively for individuals aged 60 and above.
Fixed deposits (FDs) have been a go-to investment option in India for years. Known for their stability, this investment option is most popular among senior citizens who prioritise financial stability and a consistent income. To meet the needs of this age group, senior citizen FDs is the perfect option, as it provides better interest rates along with a range of other benefits. Senior citizen FDs are exclusively for individuals aged 60 and above. The interest rates of FD are influenced by factors like the Reserve Bank of India’s (RBI) monetary policy, the overall economic scenario and inflation rates.
With FDs,you can deposit a certain specific amount for a predetermined period at an agreed-upon interest rate. Banks and NBFCs offer FD interest rates of 2.50 to 9.10 per cent p.a. to senior citizens on tenures ranging from 7 days to 10 years. Most banks and NBFCs offer an additional interest rate of 50 bps over the regular FD interest rates.
However, some private sector banks and small finance banks offer the highest FD slab rates of 7 per cent per annum and above to senior citizen depositors, making them an appealing choice for retirees or anyone looking for reliable income during their golden years.
Before you jump into these investment options, let’s compare the interest rates of different banks to maximise your income. According to data frompaisabazaar.com, below are the FD rates:
FD Interest Rates for Senior Citizens Offered by Top Public Sector Banks (in %)
Bank of Baroda – 7.80
Bank of India – 7.80
Canara Bank – 7.75
Central Bank of India- 7.95
Indian Bank- 7.75
Indian Overseas Bank- 7.80
Punjab National Bank- 7.75
State Bank of India- 7.75
UCO Bank- 7.55
Union Bank of India- 7.90
FD Interest Rates for Senior Citizens Offered by Top Private Sector Banks (in %)
Axis Bank- 7.75
Bandhan Bank- 8.55
City Union Bank- 7.50
DBS Bank- 8.00
DCB Bank- 8.50
Dhanlaxmi Bank- 7.75
Federal Bank- 8.00
HDFC Bank- 7.90
ICICI Bank- 7.75
IDBI Bank- 7.75
IDFC First Bank- 8.40
IndusInd Bank- 8.25
Kotak Mahindra Bank- 7.90
RBL Bank- 8.50
YES Bank- 8.25
FD Rates for Senior Citizens Offered by Small Finance Banks
AU Small Finance Bank- 8.50
Capital Small Finance Bank- 8.10
Fincare Small Finance Bank- 8.50
Jana Small Finance Bank- 8.75
North East Small Finance Bank- 9.00
Ujjivan Small Finance Bank- 8.75
Unity Small Finance Bank- 9.10
Utkarsh Small Finance Bank- 9.10
Senior Citizen FDs: Features
The most important thing about this investment option is that the deposit amount starts with as minimum as Rs 100.
There are various interest pay-out options from which senior citizens can choose based on their requirements. These include monthly, half-yearly pay-out, , quarterly, and annual pay-out options.
Banks/NBFCs allow senior citizens to withdraw the FD amounts partially or prematurely.
Banks also provide an automatic renewal facility to depositors, meaning the FD account will be automatically renewed when it reaches its maturity date.
FDs are secured under the insurance cover of up to Rs 5 lakhs by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
