Senior citizen FD rates: Federal Bank offers 7.20%, HDFC Bank raises select tenure to 7.10%—should you switch?
Senior citizens can now earn up to 7.20% a year on fixed deposits with Federal Bank, while HDFC Bank has raised its rate to 7.10% for a select tenure. However, before breaking an existing FD to chase a higher rate, investors should weigh premature withdrawal penalties, taxes and the remaining tenure.
- Sep 1, 2026,
- Updated Sep 1, 2026 4:10 AM IST
Senior citizens looking to generate regular income from fixed deposits (FDs) have new rates to compare, with Federal Bank offering up to 7.20% annually and HDFC Bank raising its rate on one specific tenure to 7.10%. However, a higher advertised rate does not necessarily mean existing FD holders should break their deposits and reinvest.
Federal Bank vs HDFC Bank FD rates
Federal Bank has revised interest rates on FDs below ₹3 crore, with the new rates effective from August 17. Following the revision, senior citizens can earn between 3.50% and 7.20%, depending on the maturity period.
The bank’s highest senior citizen rate of 7.20% is available on a 48-month FD. The rate for deposits above 24 months and below 48 months is 7%, while deposits above 48 months and up to 10 years earn 6.90%.
For shorter tenures, senior citizens can earn 6.75% on a one-year FD and 7.15% on a 15-month deposit.
HDFC Bank raises rate to 7.10%
HDFC Bank has increased its FD rate for senior citizens by 10 basis points on deposits below ₹3 crore for one particular maturity period. The revised rates took effect on August 19.
The rate for deposits with a tenure of 3 years 1 day to less than 4 years 7 months has risen from 7% to 7.10%.
HDFC Bank’s senior citizen FD rates now range from 3.25% to 7.10%, depending on tenure. Its 18-month to three-year deposits offer 6.95%, while five years one day to 10 years offer 6.65%.
The bank has not revised its rates for regular customers, whose rates range from 2.75% to 6.50%. This means senior citizens receive an additional 60 basis points over regular customers on HDFC Bank’s highest-rate tenure.
Senior Citizen FD Rates: Federal Bank vs HDFC Bank
| Bank | FD Tenure | Senior Citizen Interest Rate |
|---|---|---|
| Federal Bank | 7–29 days | 3.50% |
| Federal Bank | 30–45 days | 3.75% |
| Federal Bank | 46–90 days | 4.75% |
| Federal Bank | 91–180 days | 5.00% |
| Federal Bank | 181 days | 6.50% |
| Federal Bank | 182–270 days | 6.00% |
| Federal Bank | 271 days to less than 1 year | 6.50% |
| Federal Bank | 1 year | 6.75% |
| Federal Bank | Above 1 year to less than 15 months | 6.90% |
| Federal Bank | 15 months | 7.15% |
| Federal Bank | Above 15 months to 24 months | 6.90% |
| Federal Bank | Above 24 months to less than 48 months | 7.00% |
| Federal Bank | 48 months | 7.20% |
| Federal Bank | Above 48 months to 10 years | 6.90% |
| HDFC Bank | 7–14 days | 3.25% |
| HDFC Bank | 30–45 days | 3.75% |
| HDFC Bank | 6 months 1 day to 9 months | 6.00% |
| HDFC Bank | 1 year to less than 15 months | 6.75% |
| HDFC Bank | 15 months to less than 18 months | 6.85% |
| HDFC Bank | 18 months to 3 years | 6.95% |
| HDFC Bank | 3 years 1 day to less than 4 years 7 months | 7.10% |
| HDFC Bank | 5 years 1 day to 10 years | 6.65% |
Should you break an existing FD?
The latest rate changes do not automatically make it worthwhile to close an existing deposit.
Senior citizens should compare the interest rate currently being earned, remaining tenure, new FD rate, premature withdrawal penalty and tax implications before switching.
For example, an investor already earning 7% on an HDFC Bank FD would gain only 10 basis points by moving to the new 7.10% rate. Premature withdrawal charges and the loss of interest could outweigh that incremental benefit.
For investors whose deposits are nearing maturity, however, the revised rates provide an opportunity to compare banks and tenures before reinvesting.
Look beyond the headline rate
FD interest is taxable according to the depositor’s applicable income-tax slab, meaning the post-tax return can be lower than the advertised rate.
Retirees should also consider liquidity. An FD ladder, with deposits maturing at different intervals, can provide periodic access to money while still allowing investors to earn interest.
Ultimately, the best FD is not necessarily the one offering the highest rate, but the one whose tenure, liquidity and post-tax return match the investor’s financial needs.
Senior citizens looking to generate regular income from fixed deposits (FDs) have new rates to compare, with Federal Bank offering up to 7.20% annually and HDFC Bank raising its rate on one specific tenure to 7.10%. However, a higher advertised rate does not necessarily mean existing FD holders should break their deposits and reinvest.
Federal Bank vs HDFC Bank FD rates
Federal Bank has revised interest rates on FDs below ₹3 crore, with the new rates effective from August 17. Following the revision, senior citizens can earn between 3.50% and 7.20%, depending on the maturity period.
The bank’s highest senior citizen rate of 7.20% is available on a 48-month FD. The rate for deposits above 24 months and below 48 months is 7%, while deposits above 48 months and up to 10 years earn 6.90%.
For shorter tenures, senior citizens can earn 6.75% on a one-year FD and 7.15% on a 15-month deposit.
HDFC Bank raises rate to 7.10%
HDFC Bank has increased its FD rate for senior citizens by 10 basis points on deposits below ₹3 crore for one particular maturity period. The revised rates took effect on August 19.
The rate for deposits with a tenure of 3 years 1 day to less than 4 years 7 months has risen from 7% to 7.10%.
HDFC Bank’s senior citizen FD rates now range from 3.25% to 7.10%, depending on tenure. Its 18-month to three-year deposits offer 6.95%, while five years one day to 10 years offer 6.65%.
The bank has not revised its rates for regular customers, whose rates range from 2.75% to 6.50%. This means senior citizens receive an additional 60 basis points over regular customers on HDFC Bank’s highest-rate tenure.
Senior Citizen FD Rates: Federal Bank vs HDFC Bank
| Bank | FD Tenure | Senior Citizen Interest Rate |
|---|---|---|
| Federal Bank | 7–29 days | 3.50% |
| Federal Bank | 30–45 days | 3.75% |
| Federal Bank | 46–90 days | 4.75% |
| Federal Bank | 91–180 days | 5.00% |
| Federal Bank | 181 days | 6.50% |
| Federal Bank | 182–270 days | 6.00% |
| Federal Bank | 271 days to less than 1 year | 6.50% |
| Federal Bank | 1 year | 6.75% |
| Federal Bank | Above 1 year to less than 15 months | 6.90% |
| Federal Bank | 15 months | 7.15% |
| Federal Bank | Above 15 months to 24 months | 6.90% |
| Federal Bank | Above 24 months to less than 48 months | 7.00% |
| Federal Bank | 48 months | 7.20% |
| Federal Bank | Above 48 months to 10 years | 6.90% |
| HDFC Bank | 7–14 days | 3.25% |
| HDFC Bank | 30–45 days | 3.75% |
| HDFC Bank | 6 months 1 day to 9 months | 6.00% |
| HDFC Bank | 1 year to less than 15 months | 6.75% |
| HDFC Bank | 15 months to less than 18 months | 6.85% |
| HDFC Bank | 18 months to 3 years | 6.95% |
| HDFC Bank | 3 years 1 day to less than 4 years 7 months | 7.10% |
| HDFC Bank | 5 years 1 day to 10 years | 6.65% |
Should you break an existing FD?
The latest rate changes do not automatically make it worthwhile to close an existing deposit.
Senior citizens should compare the interest rate currently being earned, remaining tenure, new FD rate, premature withdrawal penalty and tax implications before switching.
For example, an investor already earning 7% on an HDFC Bank FD would gain only 10 basis points by moving to the new 7.10% rate. Premature withdrawal charges and the loss of interest could outweigh that incremental benefit.
For investors whose deposits are nearing maturity, however, the revised rates provide an opportunity to compare banks and tenures before reinvesting.
Look beyond the headline rate
FD interest is taxable according to the depositor’s applicable income-tax slab, meaning the post-tax return can be lower than the advertised rate.
Retirees should also consider liquidity. An FD ladder, with deposits maturing at different intervals, can provide periodic access to money while still allowing investors to earn interest.
Ultimately, the best FD is not necessarily the one offering the highest rate, but the one whose tenure, liquidity and post-tax return match the investor’s financial needs.