Fixed deposits (FDs) are an important financial instrument used for saving and steady income. They are considered a safe option as they come with guaranteed returns and low risk. This makes them ideal for short-term investments and for investors who prefer certainty over high returns. 

Their simple structure and fixed tenure make them suitable for people with limited time to track markets. This means that certain groups such as elderly investors can choose FDs for regular interest income and capital safety. 

Many Indian banks also offer higher interest rates on fixed deposits for senior citizens compared with regular FDs, providing better returns and added financial security.

For five-year tenure FDs, many lenders are offering returns up to 8% p.a for senior citizens, making it an attractive option.

FDs By Top Banks

For instance, top lender State Bank of India (SBI) offers senior citizens 7.55% interest on fixed deposits, applicable for tenures ranging from five to 10 years. This rate is applicable for FDs under Rs 3 crore.

Similarly, HDFC Bank offers 6.65% interest on five-year-one-day and 10-year fixed deposits for senior citizens. Bank of Maharashtra (BoM) provides 5.50% returns on five-year-plus FDs for deposits under Rs 3 crore, according to the lender’s website.

For a similar tenure, Punjab National Bank (PNB) offers 6.80% interest on senior citizen fixed deposits. Suryoday Small Finance Bank provides 8% on five-year FDs for senior citizens, which is one of the highest rates across the sector. Meanwhile, Jana Small Finance Bank offers 7.55%, giving higher guaranteed returns over long-term deposits, data on their website shows.

ICICI Bank offers senior citizens two long-term FD options: 7% for five-year-one-day to ten-year FDs, and 7.1% for five-year tax saver FDs. Both options include the facility for premature withdrawal, according to the bank.

Axis Bank, Bank of Baroda (BOB) and Kotak Mahindra Bank also offer attractive long-term fixed deposit options for senior citizens. Axis Bank provides 7.2% interest for tenures between five and 10 years, while BOB offers 7% for the same period. Kotak Mahindra Bank gives 6.75% interest on five to 10-year FDs.

Check Detailed List Of FD Rates By Top Banks

BankInterest Rate (%)Tenure (Years)State Bank of India (SBI)7.555 – 10 yearsHDFC Bank6.655-year-one-day to 10 yearsBank of Maharashtra5.5over 5 yearsPunjab National Bank (PNB)6.8over 5 yearsSuryoday Small Finance Bank85 yearsJana Small Finance Bank7.55over 5 yearsICICI Bank75 years one day to 10 yearsCanara Bank6.755 years and above to 10 yearsAxis Bank7.25-10 yearsBank of Baroda75-10 yearsKotak Mahindra Bank6.755-10 yearsSOURCE: Respective bank websites; applicable of deposits under Rs 3 crore

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