7%+ FD Rates: SBI vs BoB vs PNB vs Canara Bank — How much will senior citizens earn on ₹5 lakh, ₹10 lakh, ₹15 lakh and ₹20 lakh?

Fixed deposits (FDs) continue to be a preferred investment option for senior citizens seeking predictable returns and capital preservation. Banks generally offer an additional interest rate to senior citizens over their standard FD rates, making these deposits particularly relevant for retirees.

Among public sector banks, SBI, Bank of Baroda (BoB), Punjab National Bank (PNB) and Canara Bank offer special FD schemes with interest rates of 7% or more for senior citizens on selected tenures. However, the tenure varies considerably across these schemes, so investors should compare both the interest rate and the maturity value before investing.

SBI FD: 7.05% for 5 to 10 years

State Bank of India offers senior citizens an interest rate of 7.05% on FDs with a tenure of five years to 10 years. At this rate, an investment of ₹5 lakh grows to around ₹7.09 lakh after five years, while ₹10 lakh becomes approximately ₹14.18 lakh.

For ₹15 lakh, the maturity value is around ₹21.27 lakh. An investment of ₹20 lakh would grow to approximately ₹28.37 lakh, based on the same rate and compounding.

For a 10-year tenure, ₹5 lakh grows to around ₹10.06 lakh, while ₹20 lakh becomes approximately ₹40.23 lakh.

Bank of Baroda: 7.25% on 555-day FD

Bank of Baroda offers a 7.25% interest rate to senior citizens under its 555-day BoB Golden Goal Deposit Scheme.

At this rate, ₹5 lakh grows to around ₹5.58 lakh at maturity. A ₹10 lakh deposit becomes approximately ₹11.15 lakh, while ₹15 lakh grows to around ₹16.73 lakh.

For ₹20 lakh, the maturity amount would be approximately ₹22.31 lakh, based on the same calculation.

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Senior citizen FD rates

PNB: 7.10% on 444-day FD

Punjab National Bank offers senior citizens 7.10% on its 444-day special FD.

A ₹5 lakh investment grows to around ₹5.45 lakh, while ₹10 lakh becomes approximately ₹10.89 lakh. For ₹15 lakh, the maturity value is around ₹16.34 lakh.

On a ₹20 lakh investment, the maturity amount works out to approximately ₹21.79 lakh.

Canara Bank: 7.10% on 555-day FD

Canara Bank offers senior citizens 7.10% on its 555-day special FD scheme.

A ₹5 lakh deposit grows to around ₹5.56 lakh, while ₹10 lakh becomes approximately ₹11.29 lakh. A ₹15 lakh investment can grow to around ₹16.69 lakh.

For ₹20 lakh, the maturity value would be approximately ₹22.26 lakh, based on the stated rate and calculation.

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Senior Citizen FD: Investment vs maturity amount

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Rate isn't the only factor

While Bank of Baroda has the highest advertised rate among these four schemes at 7.25%, the shortest tenure also needs to be considered. SBI, meanwhile, offers a substantially longer investment period, which can result in a much larger maturity corpus through compounding.

For senior citizens, the choice between a cumulative FD and periodic interest payout also matters. Those requiring regular income may prefer monthly or quarterly interest, while investors who do not need immediate cash flow may opt for cumulative deposits.