Senior Citizens Fixed Deposit: Check These 10 Banks Offering Highest FD Rates

Fixed deposits (FD) are seen as a popular choice for risk-averse investors like senior citizens, especially at a time when markets are volatile. Check the list of banks offering the highest FD rates

After the RBI's repo rate hike on Wednesday, the banks are on a spree to hike lending as well as deposit rates.

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While there are several investment options tailored for senior citizens, a fixed deposit (FD) remains one of the most preferred investment options for them. FDs are seen as a popular choice for risk-averse investors like senior citizens, especially at a time when markets are volatile and capital protection is more important than capital appreciation.

FDs offer liquidity and also ensure interest income periodically for senior citizens. The savings are useful to build an emergency corpus. Even though bank FD interest is taxable, a lower tax slab for most senior citizens brings down the tax liability.

After the RBI's repo rate hike on Wednesday, the banks are on a spree to hike lending as well as deposit rates. FD investors will get lucrative returns on their deposits. It was the sixth time the interest rate has been hiked by the Reserve Bank of India (RBI) since May last year, taking the total quantum of increase to 250 basis points.

Most of the top lenders offer 50 basis points (bps) interest to senior citizens over and above the rates offered to the general bank holders. We have listed the highest bank FD rates offered by banks as per their website.

Also, note that the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.

List of banks offering higher interest rates on senior citizens fixed deposits

Bandhan Bank 

600 days (1 year, 7 months, 22 days) 8.50%

Yes Bank   

(Tenure : 35 months)  8.25%

(Tenure : 25 months) 8.00%

Axis Bank

2 years < 30 months 8.01%

IDFC First

18 months 1 day- 3years (549 days to 3 years) 8.00%

IndusInd Bank 

Above 2 Years 1 Month to below 2 years 6 Months 8.25%

2 years 6 Months to below 2 years 9 Months 8.25%

2 years 9 Months to 3 years 3 months 8.25%

Above 3 years 3 months to below 61 month 8.00%

RBL Bank 

453 to 459 days (15 months) 8.30%

460 to 724 days (15 months 1 day to less than 725 days) 8.30%

725 days 8.30%

Suryoday Bank

Above 1 Year 6 Months to 2 Years  8.51%

Above 2 years to 998 days  8.01%

999 Days 8.76%

DCB Bank 

18 months to less than 700 days 8.00%

700 days 8.00%

More than 700 days to less than 36 months 8.35%

36 months 8.35%

More than 36 months to 60 months 8.10%

More than 60 months to 120 months 8.10%

Ujjivan Small Finance Bank

8.75% for 80 weeks

Equitas Small Finance Bank 

8.5% for 888 days