FD Rates: Eight Banks Offering Up To 7.1% Interest For Senior Citizens

Fixed Deposits (FDs) remain one of the most reliable investment options for senior citizens seeking secure and predictable returns. Banks generally offer higher interest rates to senior investors compared to general depositors, particularly on medium- and long-term tenors. According to experts, comparing rates across banks before investing can help optimise earnings and ensure better financial planning. In 2025, several leading private and public sector banks in India are offering attractive rates for senior citizens, making it an opportune time to consider FDs.

Private Banks Offer Competitive Rates

Private banks are increasingly offering high interest rates on fixed deposits to attract senior citizen investors. HDFC Bank, for example, provides a 7.1% interest rate on FDs with a tenor of 18–21 months, compared to 6.6% for general depositors. Similarly, ICICI Bank offers 7.1% for tenors between 2–10 years, and Kotak Mahindra Bank provides the same maximum rate for a 23-month deposit.

Another notable private sector player, Federal Bank, offers a slightly higher rate of 7.2% for senior citizens on a tenor of 999 days. According to experts, these elevated rates make private banks a compelling choice for retirees looking to balance safety and higher returns on their savings.

Bank	Interest Rate (%)	Tenor
HDFC Bank	7.1	18–21 months
ICICI Bank	7.1	2–10 years
Kotak Mahindra Bank	7.1	23 months
Federal Bank	7.2	999 days

Government Banks Ensure Reliable Returns

Public sector banks continue to be a dependable option for senior citizens who prioritise security along with decent returns. State Bank of India (SBI), the country’s largest lender, offers 6.95% interest on a 2–3 year FD for senior citizens, while general depositors earn 6.45%. Union Bank of India provides 6.6% interest for a 3-year tenor, with a slightly lower rate for non-senior depositors.

Other government banks, such as Punjab National Bank (PNB) and Canara Bank, offer competitive returns of 7.10% on a 390-day FD and 7% on a 444-day FD, respectively. According to experts, these banks combine the assurance of state backing with reasonable interest rates, making them suitable for conservative investors.

Bank	Interest Rate (%)	Tenor
SBI	6.95	2–3 years
Union Bank of India	6.6	3 years
PNB	7.1	390 days
Canara Bank	7	444 days

Choosing The Right FD For Senior Citizens

Selecting the most suitable FD requires assessing both interest rates and deposit tenors. Experts advise senior citizens to compare private and government bank offerings carefully, as private banks may provide slightly higher returns but government banks offer added reliability and trust. Investors should also consider factors like premature withdrawal rules, compounding frequency, and deposit insurance coverage under DICGC while making decisions.

Benefits Of Fixed Deposits For Senior Citizens

FDs provide a secure way to earn guaranteed interest while preserving capital. With the additional 0.5% benefit commonly offered to senior citizens, these deposits can significantly enhance retirement income. Experts recommend diversifying deposits across multiple banks or tenors to optimise liquidity and returns. For retirees, FDs also offer peace of mind by safeguarding savings against market volatility.

In 2025, senior citizens in India have access to some of the most attractive fixed deposit rates in years. Private banks like HDFC, ICICI, Kotak Mahindra, and Federal Bank lead with competitive returns, while government banks provide secure and reliable alternatives. According to experts, carefully comparing FD rates, understanding tenors, and leveraging the senior citizen interest benefits can help maximise earnings while keeping investments safe.

Disclaimer: This article is for informational purposes only. Readers are advised to verify current FD rates with their respective banks and consult financial experts before making any investment decisions.