Best Fixed Deposit Rates for Senior Citizens in India
ByAinvest
Thursday, Aug 21, 2025 7:17 am ET1min read
HDB--
Key Highlights
Interest Rates for Senior Citizens:
- Suryoday Small Finance Bank: Offers an FD rate of up to 8.4% for a five-year tenure [1].
- slice Small Finance Bank: Provides an FD rate of 8.25% for a five-year term for senior citizens [1].
- Jana Small Finance Bank: Offers an FD rate of up to 8% for a five-year tenure [1].
- HDFC Bank: Provides 6.9% for senior citizens on a five-year deposit [3].
- ICICI Bank: Offers 7.10% for senior citizens on a five-year deposit [3].
- Kotak Mahindra Bank: Provides 6.75% for senior citizens on a five-year fixed deposit [3].
- Federal Bank: Offers 7% for senior citizens on a five-year fixed deposit [3].
- State Bank of India (SBI): Provides 7.05% for senior citizens, including an additional premium under the "SBI We-care" deposit scheme [3].
- Union Bank of India: Offers 6.9% for senior citizens on a five-year fixed deposit [3].
Tax Considerations
When the interest from an FD exceeds Rs 1 lakh, tax deducted at source (TDS) applies. Senior citizens can avoid TDS by submitting Form 15H if their total income, after claiming all deductions and the Section 87A rebate, is below the taxable limit of Rs 12 lakh under the new tax regime [1].
Conclusion
Fixed deposits remain a preferred investment choice for senior citizens due to their simplicity and safety. The rates mentioned above are current as of July 2025 and are subject to change. It is advisable for investors to compare rates from various banks and financial institutions to make an informed decision. Before making any investment, it is recommended to consult with a SEBI-registered investment advisor.
References
[1] https://m.economictimes.com/wealth/invest/fd-rate-up-to-8-4-for-senior-citizens-investing-for-five-years-know-the-list-of-banks/articleshow/123331324.cms
[2] https://www.business-standard.com/finance/personal-finance/what-are-the-best-fixed-deposit-rates-available-to-senior-citizens-125082100894_1.html
[3] https://www.livemint.com/money/personal-finance/these-6-banks-give-highest-fd-interest-rates-for-long-tenure-fixed-deposits-sbi-hdfc-bank-icici-fixed-deposits-11755508312456.html
IBN--
Fixed deposits are a safe and straightforward investment option for senior citizens in India. Here are some of the best fixed deposit rates for senior citizens in India, with rates ranging from 6.25% to 7.25%. These rates are offered by various banks and financial institutions, including SBI, HDFC Bank, and ICICI Bank.
Senior citizens in India continue to find attractive fixed deposit (FD) rates, making it an appealing investment option for safe and straightforward returns. As of July 2025, several banks and financial institutions are offering competitive FD rates, particularly for senior citizens.Key Highlights
Interest Rates for Senior Citizens:
- Suryoday Small Finance Bank: Offers an FD rate of up to 8.4% for a five-year tenure [1].
- slice Small Finance Bank: Provides an FD rate of 8.25% for a five-year term for senior citizens [1].
- Jana Small Finance Bank: Offers an FD rate of up to 8% for a five-year tenure [1].
- HDFC Bank: Provides 6.9% for senior citizens on a five-year deposit [3].
- ICICI Bank: Offers 7.10% for senior citizens on a five-year deposit [3].
- Kotak Mahindra Bank: Provides 6.75% for senior citizens on a five-year fixed deposit [3].
- Federal Bank: Offers 7% for senior citizens on a five-year fixed deposit [3].
- State Bank of India (SBI): Provides 7.05% for senior citizens, including an additional premium under the "SBI We-care" deposit scheme [3].
- Union Bank of India: Offers 6.9% for senior citizens on a five-year fixed deposit [3].
Tax Considerations
When the interest from an FD exceeds Rs 1 lakh, tax deducted at source (TDS) applies. Senior citizens can avoid TDS by submitting Form 15H if their total income, after claiming all deductions and the Section 87A rebate, is below the taxable limit of Rs 12 lakh under the new tax regime [1].
Conclusion
Fixed deposits remain a preferred investment choice for senior citizens due to their simplicity and safety. The rates mentioned above are current as of July 2025 and are subject to change. It is advisable for investors to compare rates from various banks and financial institutions to make an informed decision. Before making any investment, it is recommended to consult with a SEBI-registered investment advisor.
References
[1] https://m.economictimes.com/wealth/invest/fd-rate-up-to-8-4-for-senior-citizens-investing-for-five-years-know-the-list-of-banks/articleshow/123331324.cms
[2] https://www.business-standard.com/finance/personal-finance/what-are-the-best-fixed-deposit-rates-available-to-senior-citizens-125082100894_1.html
[3] https://www.livemint.com/money/personal-finance/these-6-banks-give-highest-fd-interest-rates-for-long-tenure-fixed-deposits-sbi-hdfc-bank-icici-fixed-deposits-11755508312456.html
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