Best Interest Rate on Senior Citizens Bank Fixed Deposits – September 2017

The post lists down the rate of interest on Bank fixed deposits for Senior Citizens as of September 4, 2017.

You might want to bookmark this page as the FD interest rates would be updated every month. Would help you in better decision making.

Fixed Deposit Highlights:

  • Most banks offer FDs for tenure of 7 Days to 10 Years.
  • The Ratnakar Bank & IDBI Bank do offer fixed deposits up to 20 years too.
  • For very short Term Deposits the interest rate is similar to that of Savings Account and so you should not worry about FD. Also Interest up to Rs 10,000 in Saving Account is Tax free.
  • Most banks compound interest quarterly
  • Banks offer Loan/Overdraft against the amount available in Fixed Deposit. The interest is generally 0.5% to 1% more than that offered to FD.
  • TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more than Rs 10,000 in financial year per bank. You can fill Form15G/H
  • You can fill Form15G/H if you want to avoid TDS.
  • There might be penalty for pre-mature withdrawal of Fixed Deposits

Also Read: How SWP in Debt Funds generate higher returns than FD

Fixed Deposit Interest Rates:

The highest interest rate is offered by The Deutsche Bank at 8.25% for 1 to 2 years Fixed Deposit.

For comparing the best interest rates on fixed deposits over different duration of investment, we have it divided into following 5 slabs:

  • FD for Less than 1 Year
  • FD for 1 to 2 years
  • FD for 2 to 5 Years
  • FD for 5 to 10 years
  • FD for More than 10 years

Also Read: 7 High Rated Companies Offering more than Bank Fixed Deposits

We show the highest interest rates on fixed deposits for the above duration buckets. We have also compared the best interest rates on offer by that being offered by State Bank of India (SBI), ICICI Bank and Post Offices.

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Interest Rate (Senior Citizens) for FD – Less than 1 Year:

The highest interest rate is offered by The Ratnakar Bank (241 days to 364 days) at 7.60% .

Bank Description Interest Rate
Ratnakar Bank 241 days to 364 days 7.60%
IDFC Bank 181 – 365 days 7.50%
Ratnakar Bank 181 days to 240 days 7.50%
Union Bank of India 10 Month to 14 Month 7.50%
Yes Bank 3 months to < 1 Year 7.50%
Bandhan Bank 6 months to less than 1 year 7.50%
Repco Bank 90 days – 364 days 7.50%
Union Bank of India 181 day to <10 Months 7.45%
Union Bank of India 180 days 7.40%
Karnataka Bank 180 days 7.40%
Karur Vysya Bank 91 Days to 180 Days 7.40%
Standard Charted Bank 181 – 364 days 7.30%
Dena Bank 271 Days to 5 years 7.30%
City Union Bank 181 days to 364 days 7.25%
DCB Bank 6 months to less than 12 months 7.25%
IDFC Bank 91 – 180 days 7.25%
Ratnakar Bank 46 days to 180 days 7.25%
Indus Ind Bank 270 days or below 1 years 7.25%
Karur Vysya Bank 181 Days to less than 1 year 7.25%
Oriental Bank of Commerce 270 Days to less than 1 year 7.25%
Tamilnad Mercantile Bank 180 days to less than 12 months 7.25%
City Union Bank 91 days to 180 days 7.00%
Lakshmi Vilas Bank 181 – 364 days 6.75%
State Bank of India Government Bank Benchmark 6.00% – 7.00%
ICICI Bank Private Bank Benchmark 4.50% – 7.00%

Also Read: 21 Hidden Charges in Saving Bank Account

Interest Rate for FD (Senior Citizens) of 1 – 2 Years:

The highest interest rate is offered by IDFC Bank (366 days) at 8.00%.

Bank Description Interest Rate
IDFC Bank 366 days 8.00%
Ratnakar Bank 12 months to less than 24 months 7.90%
IDFC Bank 361 – 1095 days 7.75%
Bandhan Bank 1 year to less than 2 years 7.75%
Repco Bank 1 Year & Above – 2 years 7.75%
Yes Bank 18 Months 8 Days to 18 Months 18 Days 7.65%
Indus Ind Bank 1 Years to below 1 Years 2 Months 7.65%
Yes Bank 1 Years to <= 10 years 7.60%
DCB Bank 18 months to less than 24 months 7.55%
Indus Ind Bank 1 Years 2 Months to below 2 Years 7.55%
Repco Bank Repco Mahila (18 Months, Exclusively for Women) 7.50%
Union Bank of India 10 Month to 14 Month 7.50%
Karur Vysya Bank 2 years and above 7.50%
Tamilnad Mercantile Bank 1 Year to less than 3 Years 7.50%
DCB Bank 12 months to less than 18 months 7.45%
Standard Charted Bank 1 Year – 375days 7.40%
City Union Bank 1 year 7.35%
Oriental Bank of Commerce 1 year to less than 2 year 7.35%
Dena Bank 271 Days to 5 years 7.30%
HDFC Bank 1 year 1 day – 1 year 3 days 7.30%
Punjab and Sind Bank 1 Year to 10 Years 7.30%
Lakshmi Vilas Bank 500 Days 7.25%
Deutsche Bank 1 Year to 2 Years 7.15%
Lakshmi Vilas Bank 1 year to 999 days 7.00%
State Bank of India Government Bank Benchmark 7.00% -7.25%
ICICI Bank Private Bank Benchmark 7.25%
Post Office FD (1 year) Post Office 6.80%
Post Office FD (2 years) Post Office 6.90%

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Interest Rate for FD (Senior Citizens) of 2 – 5 Years

The highest interest rate is offered by Deutsche Bank (5 Years) at 8.25%.

Bank Description Interest Rate
Deutsche Bank 5 Years 8.25%
Ratnakar Bank 24 months to less than 36 months 8.00%
Ratnakar Bank 36 months to less than 240 months 7.85%
IDFC Bank 361 – 1095 days 7.75%
DCB Bank 36 months to 60 months 7.70%
IDFC Bank 3 years 1days – 10 years 7.70%
Yes Bank 36 Months 10 Days to 36 Months 20 Days 7.70%
DCB Bank 24 months to less than 36 months 7.65%
Indus Ind Bank 2 years to below 2 years 6 Months 7.65%
Yes Bank 1 Years to <= 10 years 7.60%
Federal Bank 1111 Days 7.50%
Karur Vysya Bank 2 years and above 7.50%
Lakshmi Vilas Bank 1000 Days 7.50%
Repco Bank Above 2 years – 5 Years 7.50%
Tamilnad Mercantile Bank 1 Year to less than 3 Years 7.50%
Bandhan Bank 2 years to less than 5 years 7.40%
Tamilnad Mercantile Bank 3 Years & above 7.40%
Union Bank of India >14 Month to 10 Years 7.30%
Dena Bank 271 Days to 5 years 7.30%
Punjab and Sind Bank 1 Year to 10 Years 7.30%
Catholic Syrian Bank 3 Years 7.25%
J&K Bank 1 year to less than 3 years 7.25%
Bank of India 2 years & above to less than 3 years 7.15%
Canara Bank 1 year & above to less than 5 years 7.15%
Punjab National Bank Above 1 year & upto 5 years 7.15%
City Union Bank Above 1 year & upto 5 years 7.10%
Syndicate Bank Above 2 year & upto 5 years 7.10%
Bank of India 3 years & above to less than 5 years 7.10%
Corporation Bank 1 year to less than 3 years 7.10%
Lakshmi Vilas Bank 1 year to 999 days 7.00%
Lakshmi Vilas Bank 1001 Days to 10 years 7.00%
State Bank of India Government Bank Benchmark 6.75%
ICICI Bank Private Bank Benchmark 7.00%
Post Office FD (2 years) Post Office 6.90%
Post Office FD (3 years) Post Office 7.10%
Post Office FD (5 years) Post Office 7.60%

Also Read: Where to Park Money for Very Short Term [less than 6 Months]?

Interest Rate for Fixed Deposit (Senior Citizens) of 5 – 10 Years

The highest interest rate is offered by The Ratnakar Bank (36 months to less than 240 months) at 7.85%.

Bank Description Interest Rate
Ratnakar Bank 36 months to less than 240 months 7.85%
IDFC Bank 3 years 1days – 10 years 7.70%
DCB Bank More than 60 months to 120 months 7.65%
Yes Bank 1 Years to <= 10 years 7.60%
Dena Bank 5 years to 10 years 7.50%
Karur Vysya Bank 2 years and above 7.50%
Tamilnad Mercantile Bank 3 Years & above 7.40%
Union Bank of India >14 Month to 10 Years 7.30%
Punjab and Sind Bank 1 Year to 10 Years 7.30%
Indus Ind Bank 2 years 6 Months and above 7.25%
Lakshmi Vilas Bank 1001 Days to 10 years 7.00%
City Union Bank Above 5 years & upto 10 years 6.95%
State Bank of India Government Bank Benchmark 6.75%
ICICI Bank Private Bank Benchmark 7.00%

Interest Rate for Fixed Deposit of more than 10 Years

The Ratnakar Bank and IDBI bank offers fixed deposit of up to 20 years.

Bank Description Interest Rate
IDBI Bank 2 Years to 20 Years 6.50%
Ratnakar Bank 36 months to less than 240 months 7.85%


Source:
Bank Websites                                          Last Updated: September 4, 2017

Disclaimer: The Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD.

Also Read: 13 Investments to Generate Regular Income

Fixed Deposit Interest Rate for Senior Citizens across all Banks

Until last month we used to provide only the top Fixed Deposit Rates but with several request from readers we have added a summary of FD rates for all banks.

Banks 1 Years 2 Years 3 Years 4 Years 5 Years 5+ Years
Allahabad Bank 7.10% 7.00% 7.00% 7.00% 7.00% 7.00%
Andhra Bank 7.25% 7.00% 7.00% 6.75% 6.75% 6.75%
Axis Bank 7.25% 6.75% 6.75% 6.75% 6.75% 6.75%
Bandhan Bank 7.75% 7.75% 7.40% 7.40% 7.40% 7.00%
Bank of Baroda 7.10% 7.15% 7.00% 7.00% 7.00% 7.00%
Bank of India 7.20% 7.15% 7.15% 7.10% 7.00% 7.00%
Bank of Maharashtra 7.00% 6.75% 6.75% 6.50% 6.50% 6.50%
Canara Bank 7.25% 7.15% 7.15% 7.15% 7.15% 6.75%
Catholic Syrian Bank 7.00% 7.00% 7.25% 7.00% 7.00% 7.00%
Central Bank of India 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Citibank 5.75% 5.75% 6.25% NA NA NA
City Union Bank 7.35% 7.10% 7.10% 7.10% 7.10% 6.95%
Corporation Bank 7.10% 7.10% 7.10% 7.00% 7.00% 7.00%
DCB Bank 7.45% 7.55% 7.65% 7.70% 7.70% 7.65%
Dena Bank 7.30% 7.30% 7.30% 7.30% 7.30% 7.50%
Deutsche Bank 7.15% 7.15% 7.25% 7.50% 8.25% NA
Dhanalakshmi Bank 7.25% 7.25% 7.00% 7.00% 7.00% 7.00%
Federal Bank 7.20% 7.10% 7.00% 7.00% 7.00% 7.00%
HDFC Bank 7.30% 6.75% 6.50% 6.50% 6.50% 6.50%
ICICI Bank 7.25% 7.25% 7.00% 7.00% 7.00% 7.00%
IDBI Bank 7.25% 7.00% 6.75% 6.75% 6.75% 6.50%
IDFC Bank 7.50% 7.75% 7.70% 7.70% 7.70% 7.70%
Indian Bank 7.00% 6.75% 6.75% 6.50% 6.50% 6.50%
Indian Overseas Bank 7.25% 7.00% 6.75% 6.50% 6.50% 6.50%
Indus Ind Bank 7.65% 7.65% 7.25% 7.25% 7.25% 7.25%
J&K Bank 7.25% 7.25% 7.25% 7.00% 7.00% 7.00%
Karnataka Bank 7.15% 7.15% 7.00% 7.00% 7.00% 7.00%
Karur Vysya Bank 7.25% 7.50% 7.50% 7.50% 7.50% 7.50%
Kotak Mahindra Bank 7.00% 7.00% 6.50% 6.50% 6.50% 6.50%
Lakshmi Vilas Bank 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Oriental Bank of Commerce 7.35% 7.35% 7.00% 7.00% 7.00% 7.00%
Post Office Fixed Deposit 6.80% 6.90% 7.10% NA 7.60% NA
Punjab and Sind Bank 7.30% 7.30% 7.30% 7.30% 7.30% 7.30%
Punjab National Bank 7.25% 7.15% 7.15% 7.15% 7.15% 7.00%
Ratnakar Bank 7.90% 8.00% 8.00% 7.85% 7.85% 7.85%
Repco Bank 7.75% 7.50% 7.50% 7.50% 7.50% NA
South Indian Bank 7.05% 6.80% 6.80% 6.80% 6.80% 6.80%
Standard Charted Bank 7.40% 7.00% 7.00% 7.00% 7.00% NA
State Bank of India 7.25% 7.00% 6.75% 6.75% 6.75% 6.75%
Syndicate Bank 7.00% 7.00% 7.10% 7.10% 7.10% 7.00%
Tamilnad Mercantile Bank 7.50% 7.50% 7.50% 7.40% 7.40% 7.40%
UCO Bank 7.15% 7.05% 6.90% 6.90% 6.90% 6.80%
Union Bank of India 7.50% 7.30% 7.30% 7.30% 7.30% 7.30%
United Bank of India 6.75% 6.50% 6.50% 6.50% 6.50% 6.50%
Vijaya Bank 7.00% 7.00% 7.00% 7.00% 7.00% 6.75%
Yes Bank 7.60% 7.60% 7.60% 7.60% 7.60% 7.60%

Helpful Posts on FD:

It would be helpful for you to look at following posts before you choose your fixed deposits:

  1. How to increase bank deposit insurance through Joint accounts?
  2. How to fill Form 15G/H to avoid TDS deduction?
  3. How Safe is Your Fixed Deposit in Bank?
  4. How you loose Money in Fixed Deposits?

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16 thoughts on “Best Interest Rate on Senior Citizens Bank Fixed Deposits – September 2017

  1. C.P.Sachidanandan Nair says:

    The interest rates are slowly going down to the lowest level every year. Number of senior citizens are fully depend on the income from their FDs only. I do not how the senior citizens are going to survive if the interest rate goes on reducing in the name improvement in the financial improvement to the country.
    However requests to consider for the senior citizens case which should be increased to 9% minimum otherwise their survival will become a question mark .

    Regards

    • I totally agree with you and know this would make many senior citizens retirement plan go awry. But this is the new reality and people have to adjust to the same. Government would really not do anything until people unite and it thinks that its impacting a major vote-bank.
      However would recommend to put some money in long term equity funds and also start SWP in debt funds as its more efficient than Fixed deposits!

  2. Dear Amit,
    As a private employee retired,have no pension scheme.Using LIC various schemes and Senior citizen schemeFDs (maximum ltd to fifteen lakhs).I would like your advise on investing apart from Bank Fd(for senior citizen) where interest is drastically coming down,where can I invest so that you get reasonable return.please advise.

  3. Dear sir, my father is a senior citizen he want to invest scss in ( andra)bank & from the interest come from it he want to invest in a rd in same bank.Do you think it is a good decision. Or he invest rd in another bank which offer extra rate of interest.
    Please suggest.

    • It would be better to invest in bank offering highest interest rate but the problem is SCSS interest would be auto-credited in Andhrabank savings account. So transferring the same to other bank and then investing in RD might be cumbersome (though its just 4 times a year). So yes go ahead with your plan of RD with Andhrabank.

  4. srinivasan v says:

    Repco bank offers 8% for one year and above for senior citizens. Pl check up.

  5. Thanks for sharing list.

  6. Dear Amit, you are doing a great job. Keep it up. By the way, in the last table, the max. FD int. in Axis Bank is shown as 7.5%, but in an earlier table on this very page, the int. for FD of 14<15 m. is shown as 7.60%. Please correct it.

    • Dear Amit, sorry for that earlier post. Please treat it as withdrawn. I could not see your reply to m.k.jaura’s comment due to some glitch.

  7. I am sorry to say that these are obsolete rates no longer valit. Latest rates are lower. Please up date your data so that the invester is not misguided.

  8. I suppose there has to be an extensive study before stats are pur out esp. with reference to Ratnakar Bank. If you could check Varacha Bank, Surat Peoples Bank, Sutex Bank, Sarvoday Coop Bank ( all coop banks in Surrat) whose financials are available and NPAs are available for view. These give better returns than Ratnakar. Also, see Gujarat Rajya Karmachari Coop Bank. Investments upto Rs. 1 lac is insured. Also, the investor needs to be educated on the maneouveing of applicant names while opening accounts with coop banks, so that only the benefit of sr citizen is obtained, but the deposits are also insured.

    • I agree with your views and you can use various combinations of names of account holders to get benefit of deposit insurance. Historically co-operative banks have been riskier and so they offer higher interest rate. Also claiming insurance in case of default is not easy and it may take time. So it’s individuals call weather to take risk for slightly higher interest rates.

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