Best Bank Fixed Deposit Interest Rates for Senior Citizens

by Manshu on July 30, 2012

in Fixed Deposits

Last week I shared some thoughts on investing after retirement, and in continuing with the theme of retirement, this week I’m going to share some of the best fixed deposit interest rates that banks have to offer right now.

In looking through these rates, I think there is no reason for anyone to accept less than 10% since so many banks offer that and you can open two or more deposits with varying maturities so that you can take advantage of the best rates that banks offer across durations.

I think this list constitutes some of the best fixed deposit rates that are currently being offered by Indian banks. If you know of any banks outside this list then please leave a comment, and I’ll update the post with your suggestion.

These are the rates in descending order.

S.No. Bank Tenure Senior Citizen Interest Rate
1 Yes Bank  15 months 10.60%
2 South Indian Bank 39 months 10.50%
3 Federal Bank  1000 days 10.50%
4 Dhanalaxmi Bank  500 days 10.25%
5 Lakshmi Vilas Bank 2 year to less than 3 years 10.25%
6 City Union Bank 1 year 10.25%
7 Karnataka Bank 1 year to 2 years 10.25%
8 Indian Bank 1 year to less than 3 years 10.25%
9 Dena Bank  3 years to less than 5 years 10.05%
10 Karur Vysya Bank 1 year to 2 years 10.00%
11 Tamil Nadu Mercantile Bank 1 year to less than 2 years 10.00%
12 Vijaya Bank 400 days 10.00%
13 IDBI Bank 1 year to 5 years 10.00%
14 Axis Bank 1 year to less than 5 years 10.00%
15 Indian Overseas Bank 1  – 5 years 10.00%
16 ICICI Bank 390 days to 5 years 10.00%
17 Kotak Bank 390 Days 9.90%
18 Andhra Bank 3 years 9.90%
19 Bank of India 555 days 9.85%
20 Syndicate Bank 1 year 9.80%
21 Punjab and Sind Bank 500 days 9.75%
22 Corporation Bank 12 months 9.75%
23 State Bank of Patiala 555 days 9.50%
24 J&K Bank 2 years or more 9.50%
25 Allahabad Bank 1 year to less than 2 years 9.50%
26 State Bank of Travancore 1 year to 3 years 9.50%
27 Canara Bank 1 year and above 9.50%
28 Central Bank of India 555 days 9.10%
29 Bank of Baroda 444 days 8.85%

{ 17 comments… read them below or add one }

Ams July 30, 2012 at 9:48 am

You can add one more bank.
Cosmos Cooperative bank : 15 months to less than 2 years they are having an interest rate of 10.25 % for senior citizens.

check this site :



Manshu July 30, 2012 at 4:20 pm

Thanks Ams but I want to keep co-operative banks out of this list as we have seen a few of them fail over the years….


Jagmohan Lal Gupta February 27, 2013 at 1:04 pm

I want to know whether the interest rates on fixed deposits for Senior Citizens
vary with the amount deposited.If so, what are the variations?
Expect an early reply


Manshu March 4, 2013 at 5:11 am

Most banks have two rates – one for deposits over 15 lakhs and one for deposits under 15 lakhs. These figures are for deposits under 15 lakhs.


Shaily July 30, 2012 at 12:58 pm

Dear Manshu,
You have mentioned State Bank of Patiala senior citizen FD rate for 555 days as 9.5%. But that that is the rate for normal citizens. For senior citizens, the rate should be 10%
Please refer the following link.



Manshu July 30, 2012 at 4:20 pm

Thank you for the link Shaily, but in that link it doesn’t say anywhere that they are giving a higher rate of interest to senior citizens and that’s why I kept the lower rate. Do you have an account with them at a higher rate?


Shaily August 2, 2012 at 4:18 pm

Dear Manshu,
You are right-i have an account with them @9.5% for 555 days and senior citizens get 10% for the same


Abhinav Gulechha July 30, 2012 at 4:48 pm

Hi Manshu

Thanks, this is a very relevant and interesting compilation, especially from senior citizens’ perspective, as they have limited options to invest and FD is one of the prominently used options to generate reasonable returns and at the same time protect the principal. I will forward it to my father-in-law:)

one interesting thing is to note the wide variation in rates even with almost similar maturities.


Manshu July 31, 2012 at 5:45 am

The current environment and ease of familiarity of FDs make it one of the most popular investing instruments for seniors.


Shimla Katariya July 30, 2012 at 8:16 pm

its not straightforward to compare these loans since the tenure is not same. But yes, you are right – senior citizens shouldn’t accept less than 10%!


Manshu July 31, 2012 at 5:44 am

Yeah and even the quality of banks will be markedly different, so can’t directly compare.


S Rangan August 7, 2012 at 8:48 am

Oriental Bank of Commerce has some 10.5%+ for Seniors. What would be a good thing to add to this table is the compounding frequency each of these banks adopt and which banks mandate the opening / maintenance of an SB account in the investor’s name, in order to accept and process the FD. Some don’t require the Senior Citizen to visit them in person for the first visit, but that could just be at the discretion of the manager.


S Rangan August 7, 2012 at 8:52 am

Another good thing to add to this table would be a list of banks that give the best rates for say a 5-year FD. If I know that interest income is my primary source of money, I might rather lock in on a 5-yr FD even at slightly lower rates and live worry-free rather than constantly keep scouting for the best rates to switch my FD to, once it matures.


SUNIL, HAVELI KHARAGPUR September 28, 2012 at 2:00 am



K.B.Raghavan October 10, 2012 at 9:59 am

Kindly revert which nationalised Banks are giving currently the best F.D. Interest rates for 3 to 5 years period for Senior Citizens


Shaily March 4, 2013 at 10:19 am

Hey Manshu, If I’m not wrong, Yes Bank is offering a max of 10% to senior citizens for a period of 15 Months 15 Days to 16 Months. For rest of the tenures, the rate is even less than that


Manshu March 5, 2013 at 6:59 am

Thanks for pointing that out Shaily. This list has become outdated. I’ll work to update this in the next few days.


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