Fixed Deposits continue to enjoy their popular status among senior citizens, even as the Reserve Bank of India (RBI) Monetary Policy Committee announced a repo rate hike by 25 bps points on February 8, bringing good news for senior citizens as the fixed deposit (FD) interest rates appeared to be on an upward trajectory. Fixed deposits are highly sought after by senior citizens as they offer regular cash flow with minimal risks. However, it is important to note that FD rates differ from bank to bank and on the tenure of the investment. 

As of February 2023, banks like Citi Bank offer FD rates as high as 8.27 per cent for 91 to 150 days tenure for senior citizens, while Standard Chartered provides 7.75 per cent for two to three-year tenor. Data from BankBazaar showed that interest rates offered to senior citizens by some top Indian banks as of February 2023 ranged between 3 per cent and 7.25 per cent. 

For a tenure above one year, the State Bank of India offers 7.25 per cent for senior citizens, and Axis Bank provides 8.01 per cent for above two years. While major private banks like HDFC Bank offer a 7.75 per cent interest rate on FDs for senior citizens for tenure above five years, ICICI Bank provides a 7.50 per cent interest rate for above 15 months. Notably, in this category, IDFC First Bank offers a whopping 8 per cent interest rate on fixed deposits for senior citizens for tenure above one year.  

Interestingly, small finance banks provide the highest interest rates on fixed deposits, according to the BankBazaar data. Banks offering the highest interest rates for deposits below Rs 2 crore as of February 2023 include Suryoday Small Finance Bank at an 8.76 per cent interest rate for a tenure of above two years and Ujjivan Small Finance Bank at an 8.75 per cent interest rate for a tenure of above one year.  

So, let us now look at the top 10 banks from all categories providing senior citizens with the highest fixed deposit interest rates. 

Here are the top 10 banks with highest interest rates for senior citizens: 

 According to the BankBazaar website, all BSE-listed public and private banks and foreign banks were considered for compiling data on the highest interest rates on term deposits for senior citizens aged 60-80 years and deposits below Rs 1 crore. Banks whose websites don’t mention the data have not been considered.