Great news for senior citizens: These 5 public sector banks offer bumper returns on FDs

Senior citizens can earn interest rates of up to 7.25% at Bank of Baroda, 7.10% at PNB and Canara Bank, and 7.05% at Union Bank and SBI on their Fixed Deposits (FDs). Be sure to verify the rates and terms before investing.

Maintaining a regular income after retirement is a key priority for senior citizens. Fixed Deposits (FDs) are a popular investment choice in this regard, as they offer returns based on a pre-determined interest rate. Many public sector banks in the country offer higher interest rates to senior citizens compared to regular customers.

Let us look at five public sector banks where senior citizens can secure better interest rates on FDs.

The Reserve Bank of India raised the repo rate by 0.25% to 5.50% on October 7, 2026. Following this, changes in bank deposit rates are anticipated. However, a hike in the repo rate does not necessarily mean that all banks will immediately raise interest rates on FDs; such decisions also depend on the banks' financial requirements and the demand for deposits. Based on current interest rates, senior citizens may consider the FD schemes offered by these public sector banks.

Bank of Baroda

Bank of Baroda tops the list. The bank offers a maximum interest rate of 7.25% on FDs for senior citizens, whereas the maximum rate for regular customers is 6.60%.

Punjab National Bank

Senior citizens can earn a maximum interest rate of 7.10% on FDs at Punjab National Bank. In contrast, the maximum interest rate for regular customers is 6.60%.

Canara Bank

Canara Bank also offers a maximum interest rate of 7.10% to senior citizens. The maximum rate for regular customers is 6.60%.

Union Bank of India

At Union Bank, senior citizens can earn a maximum interest rate of 7.05% on fixed deposits (FDs). For general customers, the maximum rate is 6.55%.

State Bank of India (SBI)

At SBI, the country's largest public sector bank, senior citizens are earning up to 7.05% interest on FDs. The maximum rate for general customers is reported to be 6.45%.

Things to consider before opening an FD

Before investing, senior citizens should gather information regarding the FD tenure, interest payout options, and charges applicable for premature withdrawal. Interest rates vary based on the tenure; therefore, it is not advisable to invest based solely on the maximum rate.

Additionally, one can compare options such as the Senior Citizen Savings Scheme and the Post Office Monthly Income Scheme. It is best to make an investment decision by considering one's regular expense requirements, available savings, and financial goals.