Senior Citizen FD Rates 2025: Which Bank Offers The Best Returns On Deposits Across Tenures?

For senior citizens in India, fixed deposits (FDs) continue to remain one of the most trusted avenues for safe and steady income. Their appeal lies in guaranteed returns and slightly higher interest rates compared to those offered to general citizens. With varying schemes across public and private sector banks, retirees have the flexibility to choose tenure and plans as per their financial goals. According to experts, senior citizen FDs are a cornerstone for low-risk retirement planning.

Why Senior Citizen FDs Are Popular

Fixed deposits are regarded as one of the safest forms of investment, especially for retirees who prioritise capital protection. Banks provide additional interest (typically 0.25% to 0.50% higher) to individuals above 60 years of age. Tenures range from a few days to as long as ten years, allowing senior citizens to customise their investments depending on liquidity needs and long-term plans.

SBI Senior Citizen FD Rates

The country’s largest lender, State Bank of India (SBI), currently offers 7.10% interest to senior citizens under its special Amrit Vrishti Scheme for 444 days. For standard plans, it provides 6.75% on 1-year deposits, 7.80% on 3-year deposits, and 7.05% on 5-year deposits. A deposit of Rs 8 lakh would mature to Rs 8.55 lakh in one year, Rs 10.08 lakh in three years, and Rs 11.34 lakh in five years.

Bank of Baroda FD Schemes for Seniors

Bank of Baroda (BoB) provides 7.10% interest on its Square Drive Deposit Scheme for 444 days. For other regular plans, senior citizens receive 7% across 1-year, 3-year, and 5-year deposits. An investment of Rs 8 lakh would yield Rs 8.57 lakh in a year, Rs 9.85 lakh in three years, and Rs 11.31 lakh over five years.

Punjab National Bank Senior Citizen FDs

Punjab National Bank (PNB) has a special scheme offering 7.10% for 390-day deposits. On standard tenures, the rates are 6.90% for 1-year, 7.00% for 3-year, and 6.80% for 5-year FDs. A senior citizen investing Rs 8 lakh would see maturity values of Rs 8.56 lakh in one year, Rs 9.85 lakh in three years, and Rs 11.20 lakh in five years.

Canara Bank FD Rates for Senior Citizens

Canara Bank offers 7% interest on its special 444-day FD scheme. For 1-year, 3-year, and 5-year FDs, senior citizens receive 6.75% across all three tenures. A deposit of Rs 8 lakh matures to Rs 8.55 lakh in a year, Rs 9.77 lakh in three years, and Rs 11.17 lakh in five years.

ICICI Bank Senior Citizen FD Plans

Private lender ICICI Bank offers 7.10% interest for deposits ranging from 2 years 1 day up to 10 years. For 1-year deposits, it provides 6.75%, while both 3-year and 5-year plans fetch 7.10%. On an Rs 8 lakh deposit, senior citizens can expect Rs 8.55 lakh after one year, Rs 9.88 lakh after three years, and Rs 11.37 lakh at the end of five years.

HDFC Bank Senior Citizen FDs

HDFC Bank provides 7.10% for deposits maturing between 18 months and less than 21 months. Standard FD rates stand at 6.75% for 1 year, 6.95% for 3 years, and 6.90% for 5 years. An Rs 8 lakh deposit matures to Rs 8.55 lakh in one year, Rs 9.83 lakh in three years, and Rs 11.26 lakh in five years.

Axis Bank Senior Citizen FD Interest Rates

Axis Bank offers the most attractive return among private players, providing 7.35% on 5 to 10-year deposits. It also gives 6.75% for 1 year, 7.10% for 3 years, and 7.35% for 5 years. This means an Rs 8 lakh investment grows to Rs 8.55 lakh in one year, Rs 9.88 lakh in three years, and Rs 11.51 lakh in five years.

What Experts Suggest for Senior Citizens

According to financial experts, senior citizens should diversify their FD investments across multiple banks and tenures. This strategy ensures liquidity while securing better average returns. Experts also recommend matching FD tenures with expected cash flow requirements to avoid premature withdrawals and penalty charges.

Key Takeaway

Senior citizen FD schemes remain one of the safest and most reliable investment options in India. While returns vary across banks, the difference in maturity amounts can be significant over longer tenures. Retirees looking for stability and regular income should compare interest rates carefully before investing, while keeping personal liquidity needs in mind.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Interest rates are subject to change based on bank policies and RBI guidelines. Senior citizens are advised to consult their financial advisors before making investment decisions.