Federal Bank FD at 7.50% vs Bank of Baroda at 7.45%: Which is better for senior citizens?

Fixed deposits remain a preferred investment option for senior citizens seeking predictable returns and capital preservation. Two banks have now revised their deposit rates in November, offering investors an opportunity to compare returns, liquidity and investment conditions before locking in their savings.

Federal Bank, on November 12, increased the additional interest benefit for senior citizens from 50 basis points to 60 basis points on select deposits. The revision allows eligible senior citizens to earn up to 7.50% annually.

A day earlier, Bank of Baroda raised interest rates on its 555-day bob Golden Goal Deposit Scheme by 10 basis points, offering 7.35% to senior citizens and 7.45% to super senior citizens.

Federal Bank: Up to 7.50%, but conditions apply

Federal Bank offers 7.40% annually on eligible deposits with premature withdrawal facilities. The revised rates apply to tenures of 18 months and two years to less than three years.

However, its highest rate of 7.50% is available only on deposits of ₹1 crore and above without premature withdrawal facilities. The revised rates apply to individual deposits below ₹3 crore.

According to the bank, the 7.40% deposit offers an effective annualised yield of up to 8.18% for a 35-month tenure, while the 7.50% non-callable deposit offers up to 8.30%. These quoted yields should not be confused with the contractual annual interest rates.

Joy P V, EVP and Country Head – Retail Liability & Fee Products, Federal Bank, said, "The revised rates reinforce our commitment to providing superior value to customers, especially senior citizens seeking stable and rewarding investment opportunities."

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Bank of Baroda: Higher returns on 555-day deposits

Bank of Baroda's revised 555-day FD offers 6.85% to general citizens, 7.35% to senior citizens and 7.45% to super senior citizens.

For senior citizens, the 555-day rate is higher than the bank's 6.95% on its 444-day special deposit and 7% on deposits above five years and up to 10 years.

Federal Bank vs Bank of Baroda: Latest FD interest rates compared

Particulars	Federal Bank	Bank of Baroda
Highest advertised FD rate	7.50%	7.45%
General citizen rate	6.80%–6.90%	6.85%
Senior citizen rate	7.40%–7.50%	7.35%
Super senior citizen rate	Not separately specified	7.45%
Eligible tenure	18 months; 2 years to less than 3 years	555 days
Minimum deposit for highest rate	₹1 crore	Not specified
Premature withdrawal	Allowed at 7.40%; not allowed at 7.50%	Subject to scheme terms
Effective date	November 12, 2026	November 11, 2026

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Which FD should senior citizens choose?

For retirees investing smaller amounts, Federal Bank's 7.40% callable FD and Bank of Baroda's 7.35% special deposit warrant comparison, particularly because their tenures differ.

Investors with ₹1 crore or more may consider Federal Bank's 7.50% non-callable option, provided they do not require early access to the funds.

However, the 5-basis-point difference between the two banks' highest advertised rates is not a like-for-like comparison, since Bank of Baroda's 7.45% applies to super senior citizens, while Federal Bank's 7.50% carries deposit-size and withdrawal restrictions.

Depositors should also consider taxation, payout frequency and deposit insurance. DICGC coverage is limited to ₹5 lakh per depositor per bank, including principal and interest, subject to applicable conditions.

Ultimately, liquidity requirements, eligibility and investment horizon should take precedence over marginal differences in headline interest rates.

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