Compare the best FD interest rates for senior citizens across major banks. Learn about special schemes, tax benefits, and how to maximize your retirement income.
Senior citizens get 0.25% to 0.75% higher interest rates on Fixed Deposits compared to regular customers. This benefit, combined with special schemes, can significantly boost your retirement income.
Here's a comprehensive comparison of senior citizen FD rates across major banks.
Senior Citizen FD Rates Comparison (2024)
Public Sector Banks
| Bank |
1 Year |
2 Years |
3 Years |
5 Years |
| SBI |
7.00% |
7.25% |
7.10% |
6.75% |
| Bank of Baroda |
7.15% |
7.50% |
7.30% |
6.80% |
| Punjab National Bank |
7.00% |
7.25% |
7.05% |
6.75% |
| Canara Bank |
7.15% |
7.40% |
7.20% |
6.85% |
| Union Bank |
7.10% |
7.30% |
7.15% |
6.80% |
| Indian Bank |
7.00% |
7.25% |
7.10% |
6.75% |
| Bank of India |
7.10% |
7.35% |
7.20% |
6.80% |
Calculate your returns: Use our FD Calculator to see your maturity amount.
Private Banks
| Bank |
1 Year |
2 Years |
3 Years |
5 Years |
| HDFC Bank |
7.25% |
7.50% |
7.50% |
7.50% |
| ICICI Bank |
7.30% |
7.50% |
7.50% |
7.50% |
| Axis Bank |
7.25% |
7.50% |
7.35% |
7.35% |
| Kotak Mahindra |
7.40% |
7.60% |
7.40% |
7.10% |
| Yes Bank |
7.75% |
8.00% |
7.75% |
7.50% |
| IndusInd Bank |
7.75% |
7.75% |
7.75% |
7.50% |
| Federal Bank |
7.30% |
7.50% |
7.30% |
7.10% |
| IDFC First |
7.75% |
8.00% |
7.75% |
7.25% |
Small Finance Banks (Higher Rates)
| Bank |
1 Year |
2 Years |
3 Years |
5 Years |
| Unity SFB |
9.00% |
8.75% |
8.25% |
8.00% |
| Ujjivan SFB |
8.50% |
8.50% |
8.25% |
8.00% |
| AU SFB |
8.00% |
8.00% |
7.75% |
7.50% |
| Equitas SFB |
8.50% |
8.25% |
8.00% |
7.75% |
| Suryoday SFB |
9.00% |
8.75% |
8.50% |
8.25% |
Rates as of late 2024. Verify with banks before investing.
Senior Citizen Premium Over Regular FDs
| Bank |
Regular FD (1 Year) |
Senior FD (1 Year) |
Premium |
| SBI |
6.50% |
7.00% |
+0.50% |
| HDFC Bank |
6.75% |
7.25% |
+0.50% |
| ICICI Bank |
6.80% |
7.30% |
+0.50% |
| Kotak |
6.90% |
7.40% |
+0.50% |
| Small Finance Banks |
7.50-8.50% |
8.00-9.00% |
+0.50-0.75% |
Typical senior citizen premium: 0.25% to 0.75%
Special Schemes for Super Senior Citizens (80+)
Some banks offer additional benefits for those above 80 years.
| Bank |
Regular Senior (60+) |
Super Senior (80+) |
Extra Benefit |
| SBI |
+0.50% |
+0.80% |
+0.30% |
| HDFC Bank |
+0.50% |
+0.75% |
+0.25% |
| ICICI Bank |
+0.50% |
+0.70% |
+0.20% |
| PNB |
+0.50% |
+0.80% |
+0.30% |
Check with your bank for super senior citizen benefits.
Impact of Extra Interest
₹10 Lakh FD Comparison
| Category |
Rate |
1-Year Interest |
5-Year Maturity |
| Regular customer |
6.50% |
₹65,000 |
₹13.70 L |
| Senior citizen (+0.50%) |
7.00% |
₹70,000 |
₹14.03 L |
| Super senior (+0.80%) |
7.30% |
₹73,000 |
₹14.23 L |
5-year difference: Senior citizen earns ₹33,000 more than regular customer.
Monthly Income from ₹50 Lakh FD
| Rate |
Monthly Interest (Non-Cumulative) |
| 6.50% (Regular) |
₹27,083 |
| 7.00% (Senior) |
₹29,167 |
| 7.50% (Private bank senior) |
₹31,250 |
| 8.00% (SFB senior) |
₹33,333 |
Higher rate = ₹4,000-6,000 more per month.
Tax Benefits for Senior Citizens
Section 80TTB Deduction
| Benefit |
Details |
| Eligible |
Senior citizens (60+) |
| Deduction limit |
₹50,000 per year |
| Covers |
FD interest, savings interest, post office deposits |
| Tax saving (30% bracket) |
Up to ₹15,000 |
TDS Threshold
| Category |
TDS Threshold |
| Regular customers |
₹40,000/year |
| Senior citizens |
₹50,000/year |
Interest up to ₹50,000 has no TDS for senior citizens.
Form 15H Benefit
| Condition |
TDS Status |
| Total income < ₹5 L (after 80C, 80TTB) |
Submit Form 15H |
| Effect |
No TDS deducted |
| Validity |
One financial year |
Submit Form 15H at the beginning of each financial year to all banks/branches where you have FDs.
Best FD Strategies for Senior Citizens
Strategy 1: Laddered FDs for Regular Income
| FD |
Amount |
Tenure |
Maturity |
Purpose |
| FD 1 |
₹10 L |
1 year |
Year 1 |
Reinvest or use |
| FD 2 |
₹10 L |
2 years |
Year 2 |
Reinvest or use |
| FD 3 |
₹10 L |
3 years |
Year 3 |
Reinvest or use |
| FD 4 |
₹10 L |
4 years |
Year 4 |
Reinvest or use |
| FD 5 |
₹10 L |
5 years |
Year 5 |
Reinvest or use |
Benefits:
- Regular liquidity every year
- Can reinvest at prevailing rates
- Reduces interest rate risk
Strategy 2: Monthly Income FDs
| Bank Type |
Rate |
₹30 L Investment |
Monthly Income |
| PSU Bank |
7.00% |
₹30 L |
₹17,500 |
| Private Bank |
7.50% |
₹30 L |
₹18,750 |
| Small Finance Bank |
8.00% |
₹30 L |
₹20,000 |
Choose non-cumulative option with monthly payout.
Strategy 3: Split Across Banks
| Principle |
Reason |
| Max ₹5 L per bank |
DICGC insurance limit |
| Multiple banks |
Spread risk |
| Mix of bank types |
Optimize returns vs safety |
Example for ₹30 L:
| Bank |
Amount |
Type |
| SBI |
₹5 L |
Safety |
| HDFC Bank |
₹5 L |
Service quality |
| Kotak |
₹5 L |
Good rates |
| AU SFB |
₹5 L |
High rates |
| Unity SFB |
₹5 L |
Highest rates |
| IDFC First |
₹5 L |
Balance |
Strategy 4: Tax-Efficient Distribution
| Spouse |
FD Amount |
Interest @ 7% |
Tax Implication |
| Senior citizen 1 |
₹7.14 L |
₹50,000 |
80TTB covers fully |
| Senior citizen 2 |
₹7.14 L |
₹50,000 |
80TTB covers fully |
| Total |
₹14.28 L |
₹1 L |
Zero tax |
Split FDs between spouses to maximize 80TTB benefit.
Small Finance Banks: Higher Returns, What's the Catch?
Why SFBs Offer Higher Rates
| Factor |
Explanation |
| Newer banks |
Need to attract deposits |
| Higher lending rates |
Can afford to pay more |
| Competition |
Differentiate from big banks |
| Focus on deposits |
Core funding source |
Are SFBs Safe?
| Safety Factor |
Status |
| RBI regulated |
Yes, same as other banks |
| DICGC insurance |
Yes, ₹5 L covered |
| Capital requirements |
Same as scheduled banks |
| Audit requirements |
Same standards |
They are as safe as other scheduled banks for amounts up to ₹5 L (DICGC limit).
SFB FD Considerations
| Factor |
Consideration |
| Branch network |
Limited (use online/app) |
| Service quality |
Variable |
| Premature withdrawal |
Same rules as others |
| Online access |
Usually good |
How to Open Senior Citizen FD
Documents Required
| Document |
Purpose |
| Age proof (Aadhaar/PAN/Passport) |
Verify senior citizen status |
| Address proof |
KYC |
| Photographs |
Account opening |
| Existing account (if any) |
Link for interest credit |
| Form 15H (if applicable) |
TDS exemption |
Online Opening Steps
| Step |
Action |
| 1 |
Log in to net banking/app |
| 2 |
Go to FD section |
| 3 |
Select senior citizen FD |
| 4 |
Enter amount and tenure |
| 5 |
Choose cumulative/non-cumulative |
| 6 |
Submit Form 15H online (if available) |
| 7 |
Confirm |
Common Mistakes to Avoid
1. Not Claiming Senior Citizen Rate
| Mistake |
Solution |
| FD opened at regular rate |
Request correction with age proof |
| Rate not updated after turning 60 |
Inform bank, get rate revised |
2. Missing Form 15H Submission
| Impact |
Consequence |
| TDS deducted unnecessarily |
Claim refund in ITR (delayed) |
| Cash flow affected |
10% less interest credited |
Submit Form 15H at start of every financial year.
3. Putting All Money in One Bank
| Risk |
Mitigation |
| Beyond ₹5 L not insured |
Split across banks |
| Single point of failure |
Diversify |
4. Ignoring Small Finance Banks
| Misconception |
Reality |
| SFBs are risky |
Same regulation, same insurance |
| Lower service quality |
Improving rapidly |
Consider SFBs for portion of your FD portfolio (within ₹5 L per bank).
5. Choosing Wrong Payout Option
| Need |
Choose |
| Regular income |
Non-cumulative (monthly/quarterly) |
| Wealth building |
Cumulative |
Comparison: Bank FD vs Post Office SCSS
| Factor |
Bank Senior FD |
Post Office SCSS |
| Interest rate |
7-8% |
8.2% (Q4 2024) |
| Maximum investment |
No limit |
₹30 L |
| Lock-in |
Flexible tenure |
5 years |
| Premature withdrawal |
Allowed (penalty) |
After 1 year (penalty) |
| Tax benefit |
80TTB (₹50K) |
80TTB (₹50K) |
| Safety |
DICGC ₹5 L |
Government guaranteed |
SCSS offers higher rate but has ₹30 L limit and 5-year lock-in.
Quick Decision Guide
| Priority |
Best Option |
| Highest rate |
Small Finance Bank |
| Best safety |
PSU Bank (within ₹5 L) |
| Good service + rate |
Private bank |
| Government backing |
Post Office SCSS |
| Flexibility |
Bank FD (any type) |
Conclusion
| Factor |
Recommendation |
| Rate comparison |
Check quarterly, rates change |
| Minimum senior premium |
0.50% above regular |
| Tax optimization |
Use 80TTB (₹50K), Form 15H |
| Diversification |
Multiple banks, ≤₹5 L each |
| SFB consideration |
Yes, for higher returns |
Action steps for senior citizens:
- Compare rates across banks (use this guide)
- Don't ignore Small Finance Banks
- Submit Form 15H every April
- Split FDs to stay within ₹5 L DICGC limit per bank
- Consider SCSS for ₹30 L (highest safe return)
- Review and reinvest at best rates on maturity
Your retirement savings deserve the best returns with safety.
Calculate your senior citizen FD returns: Use our FD Calculator to compare maturity amounts across different rates.
