Top 10 Banks Offering Highest FD Interest Rates for Senior Citizens in 2025

For senior citizens, Fixed Deposits (FDs) continue to be one of the most trusted and safest investment options. Despite changing market conditions, banks are offering attractive interest rates to elderly investors, often higher than what is available to regular customers. Here’s a look at the top 10 banks currently offering the highest FD interest rates for senior citizens as of October 2025, along with an estimate of the returns on a ₹1 lakh deposit.

1. IndusInd Bank – 7.5%

IndusInd Bank tops the list, offering 7.5% interest on FDs with a tenure ranging from 6 to 12 months. For a ₹1 lakh investment, senior citizens can earn approximately ₹7,500 in interest per year. The bank also allows flexible payout options to suit retirees’ income needs.

2. Axis Bank – 7.35%

Axis Bank is offering 7.35% interest for deposits held between 5 to 10 years. A ₹1 lakh fixed deposit will earn around ₹7,350 in annual interest. The bank also provides monthly or quarterly interest payout options, making it suitable for those seeking regular income.

3. HDFC Bank – 7.10%

HDFC Bank offers a 7.10% interest rate for FDs with tenures between 18 and 21 months. This means a ₹1 lakh investment would yield about ₹7,100 in interest. HDFC remains a preferred choice among retirees for its stability and convenient online FD management.

4. ICICI Bank – 7.10%

ICICI Bank provides 7.10% interest on FDs for tenures between 2 years 1 day and 10 years. On a ₹1 lakh investment, senior citizens can expect to earn roughly ₹7,100 annually. The bank’s long-term FDs are ideal for those seeking both safety and decent returns.

5. Kotak Mahindra Bank – 7.10%

Kotak Mahindra Bank is offering 7.10% interest for deposits between 391 days and 23 months. This means that a ₹1 lakh deposit will generate around ₹7,100 in annual returns. The bank also offers easy online renewal and auto-payout facilities.

6. Bank of Baroda – 7.10%

Bank of Baroda (BoB) provides 7.10% interest on its 444-day FD scheme. A ₹1 lakh investment would fetch approximately ₹7,100 in interest. The bank’s short-term FD options make it a good choice for conservative investors.

7. Punjab National Bank (PNB) – 7.10%

PNB offers 7.10% interest for 390-day FDs. Senior citizens investing ₹1 lakh can earn nearly ₹7,100 in annual interest. PNB also offers flexible reinvestment options for maximizing returns.

8. Union Bank of India – 7.10%

Union Bank of India is giving 7.10% interest on 456-day deposits. On a ₹1 lakh deposit, the annual interest comes to about ₹7,100. The bank’s digital FD facilities make investing simple and accessible.

9. State Bank of India (SBI) – 7.05%

India’s largest public sector bank, SBI, offers 7.05% interest for FDs ranging from 5 to 10 years. Senior citizens investing ₹1 lakh will earn approximately ₹7,050 annually. SBI’s brand trust and extensive branch network continue to attract senior investors.

10. Canara Bank – 7%

Canara Bank offers 7% interest for 444-day deposits. A ₹1 lakh investment will yield around ₹7,000 in interest. The bank’s special FD schemes for senior citizens add further value for long-term savers.

Key Takeaway

Even in a changing interest rate environment, fixed deposits remain a stable and low-risk investment avenue for retirees. Most banks offer an additional 0.5% interest to senior citizens, making FDs an excellent option for those looking for predictable and safe returns.

Before investing, it’s wise to compare tenure options, payout frequency, and premature withdrawal rules to find the most suitable plan. With these top 10 banks offering competitive rates, senior citizens can secure both regular income and peace of mind in their post-retirement years.