Where can senior citizens get the highest interest on FDs? Understand the calculation..

If the elderly in your family have saved their hard-earned money over a lifetime and are planning to invest it in a bank Fixed Deposit (FD) to earn a steady, stress-free return, wait—there is a fresh update as of October 2026. Major banks are offering attractive interest rates of up to 7.45% per annum to entice senior citizens. We will tell you which bank is currently offering the highest interest rates for senior citizens.

Bank of India
Bank of India tops the list for the highest interest rates. It offers a return of 7.45%—the highest available—to senior citizens who open a 3-year Fixed Deposit. For a 1-year FD, the interest rate is 7%, while for a 5-year FD, it is 6.75%.

Bank of Baroda and Axis Bank
Bank of Baroda offers 7.25% under its 555-day ‘BOB Golden Goal’ scheme (with rates of 6.75% for 1-year and 3-year tenures, and 6.90% for 5 years). Meanwhile, Axis Bank offers 7.25% on deposits held for 5 to 10 years (with 6.75% for 1 year and 7% for 3 years).

Private Sector Giants (HDFC and ICICI)
Both these banks offer a maximum interest rate of 7.10%. At HDFC Bank, you can earn 6.75% for 1 year, 6.95% for 3 years, and 6.90% for 5 years. At ICICI Bank, the rate for a 1-year deposit is 6.75%, while for 3-year and 5-year deposits, the rates are 6.95% and 7.10%, respectively. State Bank of India (SBI)
SBI is offering an interest rate of 7.05% on long-term fixed deposits (FDs) with tenures of 5 to 10 years. For a 1-year FD, the interest rate is 6.75%, and for a 3-year FD, it is 6.80%.

Punjab National Bank and Canara Bank
At Punjab National Bank (PNB), an FD for 444 days earns 7.10% interest. For tenures of 1, 3, and 5 years, the interest rates are 6.75%, 6.80%, and 6.85%, respectively. Canara Bank offers 7.10% on a 555-day FD, while for 1, 3, and 5-year tenures, the rate is 6.75%.

Kotak Mahindra Bank and Union Bank of India
Kotak Mahindra Bank offers 7.15% on FDs with tenures of 2 to 3 years (6.85% for 1 year, 6.90% for 3 years, and 6.75% for 5 years). Union Bank of India offers 7.05% for a 555-day tenure; however, for 1, 3, and 5-year tenures, the rates are lower—6.70%, 6.60%, and 6.50%, respectively.

Things to consider before investing
Don't just look at the highest interest rate: Do not be swayed solely by the highest advertised interest rate. Check the specific rate offered by the bank for the exact tenure you intend to invest for, as rates vary by duration.

Premature withdrawal leads to deductions: If you withdraw your FD before the maturity date, the bank will deduct a penalty, and you will also earn less interest. Taxation applies: Earnings from a fixed deposit (FD) may be subject to income tax as per the prevailing rules. If you require interest payouts—either monthly or quarterly—to cover your expenses, banks offer options for this as well.

Your money is completely secure: Under the DICGC (a government-backed body), your principal amount and accrued interest—up to a total of ₹5 lakh—are fully protected. Even in the event of a bank failure, you are guaranteed to receive this money.

Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.