Bank FDs for senior citizens: 5 banks that are offering better interest rates than SBI, HDFC, ICICI

Since Finance Minister Nirmala Sitharaman announced attractive interest rates and schemes for senior citizens in the Budget 2023, many banks either revised their interest rates on fixed deposits or floated new FD schemes, especially for the senior group. Most banks have revised their FD interest rates since the Reserve Bank of India (RBI) raised its repo rate to 6.5 per cent earlier this month. Whenever RBI increases the repo rate, interest rates on fixed deposits also go up, thereby making it an attractive savings option. 

All major banks, starting from the State Bank of India (SBI), HDFC Bank Limited, Punjab National Bank (PNB), ICICI Bank, Kotak Mahindra Bank to Axis Bank, have revised their interest rates. While nationalised banks offer a return of up to 7.5- 8 per cent on fixed deposits, small finance banks (SFBs) offer a return of up to 9.5 per cent on fixed deposits. 

Senior citizens are offered a wide range of benefits under FD schemes, besides the additional 0.50 per cent interest rate that most banks offer. Any individual aged above 60 years (including super senior citizens aged above 80 years) can avail of this interest rate.   

Although bank FD interest is taxable, senior citizens get an additional benefit that ensures that tax liability is minimal or nil. 

Let’s take a look at the best FD rates for senior citizens. 

1.    Unity Small Finance Bank 

Best slab: 9.5%  

For senior citizens, Unity Small Finance Bank is offering 9.5 per cent interest rate for the scheme of 1,001 days.  

On deposits of 181-201 days and 501 days, Unity Bank is offering 9.25 per cent interest to senior citizens with effect from 15th February 2023.  

2.    Suryoday Small Finance Bank 

Best slab: 8.51% 

Suryoday Small Finance Bank is offering an interest rate of 8.76 per cent interest rate for a tenure of 999 days for senior citizens. 

Besides, the small finance bank in offering an interest rate of 8.51 per cent for schemes of 2 years to 999 days.  

3.    Jana Small Finance Bank 

Best slab: 8.80% 

Jana Small Finance Bank, which is the largest Micro Finance Institution in India, offers various regular fixed deposits and FD Plus schemes for tenures ranging from 7 days to 10 years.  

The bank offers an additional interest of 0.70 per cent to senior citizen investors on all fixed deposit tenures. The best interest rates for senior citizens are 8.80 per cent for a tenure of 2 years to 3 years.  

4.    Bandhan Bank 

Best slab: 8.50% 

Bandhan Bank offers term deposits or fixed deposits (FDs) to senior citizens with interest rates in the range of 3.00 per cent to 8.50 per cent for domestic investors. The rate for senior citizens is 0.75 per cent higher than the general investors.  

Senior citizens can opt for the special FD scheme for 600 days, which will give them an interest rate of 8.50 per cent. 

5.    IDBI Bank 

Best rate: 7.50% 

Senior citizens can earn up to 0.75 per cent additional interest rates under IDBI Naman Senior Citizen Fixed Deposits. The minimum deposit under this scheme is Rs 10,000. The maximum limit will go up to Rs 2 crore. Senior citizens can earn an interest rate of 7.50 per cent for fixed deposits maturing between one year and two years (except 444 days and 700 days).  

For FDs maturing between two years and three years, the interest rate will be 7.25 per cent for senior citizens. The scheme is valid till March 31, 2022. 

Also read: Senior Citizen Savings Scheme vs bank FDs for senior citizens: Updated interest rates, tax benefits

FD rates for top banks 

State Bank of India 

The State Bank of India (SBI) has recently raised its interest rates by up to 25 basis points (bps) after RBI's rate revision. Senior citizens can now earn up to 7.5% on SBI fixed deposits. SBI has a special SBI WeCare FD scheme for senior citizens where it offers an interest rate of 7.5 per cent for fixed deposits maturing between five years and 10 years for senior citizens. The scheme is available till March 31, 2023.  

In addition to this, SBI has introduced a new fixed deposit scheme for a period of 400 days, Amrit Kalash Deposit. The interest rate for general investors is 7.10 per cent, whereas, senior citizens would get 7.60 per cent. Depositors can invest in this special plan until March 31, 2023. 

ICICI Bank  

The ICICI bank has a dedicated fixed deposit scheme for senior citizens, ICICI Bank Golden Years FD. Under this, senior depositors can get an interest rate of 7.50 per cent for schemes between five years and 10 years for senior citizens. The scheme is available till April 7, 2023.  

HDFC Bank 

HDFC Bank, too, has introduced a special scheme for senior citizens -- Senior Citizen Care FD. The interest rate is 7.75 per cent, and the tenure is between five years and 10 years. The scheme is available till March 31, 2023. The offer will be applicable for deposits of below Rs 2 crore. 

 

Bank	Tenure	FD rates for senior citizens
State Bank of India (SBI)	WeCare	7.50%
State Bank of India (SBI)	Amrit Kalash Deposit	7.60%
State Bank of India (SBI)	400 days (Amrit Kalash)	7.60%
ICICI Bank	ICICI Bank Golden Years FD	7.50%
HDFC Bank	HDFC Bank Senior Citizen Care FD	7.75%
Unity Small Finance Bank	FD scheme for 1,001 days	9.50%
Bandhan Bank	FD scheme for 600 days	8.50%
Suryoday Small Finance Bank	FD scheme for 999 days	8.51%
Jana Small Finance Bank	2 years to 3 years	8.80%
IDBI Bank	IDBI Naman Senior Citizen Fixed Deposits	7.50%