Senior Citizen FDs: PSU Banks Offer Up to 7.10% Interest on 1-Year Deposits - See Returns on ₹5 Lakh

Fixed deposits (FDs) remain a favorite choice for senior citizens, and it’s easy to see why. FDs offer higher interest rates than savings accounts, ensure the safety of your money, and remove the stress of market fluctuations. Many FDs also provide monthly or quarterly payouts, making it easier to manage daily expenses. On top of that, certain FD plans come with insurance coverage of up to ₹5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC).
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Here’s a look at the best 1-year FD interest rates offered by PSU banks to senior citizens, along with maturity calculations for a ₹5 lakh investment:



  • State Bank of India (SBI): 6.75% interest; ₹5,34,614 on maturity.

  • Bank of Baroda (BoB): 7% interest; ₹5,35,930 on maturity.

  • Indian Overseas Bank (IOB): 7.10% interest; ₹5,36,456 on maturity.

  • Punjab National Bank (PNB): 6.75% interest; ₹5,34,614 on maturity.

  • Central Bank of India: 6.90% interest; ₹5,35,403 on maturity.

These rates show that senior citizens can enjoy slightly higher returns than the general public, while keeping their funds secure.



FAQs


Do FDs give higher returns than savings accounts?

  • Yes, FDs generally offer better interest rates.


Do senior citizens get better rates than others?