The interest rates available on Fixed Deposit are always an important decision for investors. Especially for senior citizens who expect good returns from their investments, it is very important to choose the right bank. Many big banks are offering good interest rates above 7% to senior citizens in 2025, making investment even more profitable. Let us know in which banks you can earn the highest interest by making fixed deposits.
FD interest rates in private banks
First of all, if we talk about private banks, HDFC Bank gives up to 7.1% interest to senior citizens on FD with a tenure of 18 to 21 months, while normal customers get 6.6%. These new rates have come into effect from June 25, 2025. Similarly, ICICI Bank is offering 7.1% interest to senior citizens on fixed deposits for 2 to 10 years, which is 6.6% for general people.
Kotak Mahindra Bank also offers 7.1% interest to senior citizens and 6.6% interest to other customers on FD with a tenure of 23 months. These rates have come into effect from August 20. Federal Bank has also offered 7.2% interest to senior citizens on 999 day FD, which is slightly better than other private banks.
FD rates of public sector banks
Talking about government banks, India’s largest bank State Bank of India (SBI) has announced to give 6.95% interest to senior citizens and 6.45% interest to general people on FD of 2 to 3 years. These rates are applicable from July 15, 2025. Union Bank of India offers 6.6% interest on 3-year FD to senior citizens, while general customers get slightly less, 6.1%. Punjab National Bank (PNB) is offering 7.10% interest on a tenure of 390 days, which is a good rate for senior citizens. Canara Bank gives 7% interest to senior citizens and 6.5% interest to general customers on FD of 444 days. These new rates are applicable from 7 August 2025.
Why are interest rates on FD important?
Interest rates decide how fast your money will grow. Especially for elderly people, who want safe and good returns from their savings, FD is a reliable option. Therefore, it is important to choose the right bank and make a fixed deposit at a high interest rate.
Why do senior citizens get more interest?
According to government rules, there is a provision to give additional interest on fixed deposits to senior citizens (60 years and above). This not only keeps their savings safe but also increases, which helps in their monthly income.