In April 2025, senior citizens in India can benefit from some of the highest Fixed Deposit (FD) interest rates seen in recent years. With banks introducing special schemes and offering higher returns to individuals aged 60 and above, knowing where to invest is key to maximizing returns and financial security.
Senior Citizens Getting the Highest Interest on FDs
| Bank Name | Max FD Interest Rate for Senior Citizens | Special Scheme / Tenure |
|---|---|---|
| IDFC FIRST Bank | 8.40% p.a. | 400–500 days |
| Central Bank of India | 8.00% p.a. | 3333 days (Cent Green Deposit) |
| Repco Bank | 8.25% p.a. | Varies |
| Yes Bank | 8.00% p.a. | Varies |
| DCB Bank | 7.90% p.a. | Varies |
| HDFC Bank | 7.90% p.a. | 15–18 months |
| ICICI Bank | 7.85% p.a. | 15–18 months |
| Axis Bank | 7.75% p.a. | 15 months to <2 years |
| SBI (Amrit Vrishti) | 7.65% p.a. | 444 days |
Choosing the right FD as a senior citizen can significantly boost your passive income while ensuring financial security. With rates as high as 8.40% p.a., it’s an excellent time to compare options and invest wisely. Consider your tenure, liquidity needs, and interest payout preference before finalizing any FD scheme. And don’t forget to regularly check for updated rates and new schemes from both public and private sector banks.
Understanding Fixed Deposits for Senior Citizens
What Is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a savings tool where you deposit a lump sum in a bank for a fixed time and earn interest on it. The interest is predefined, and the money is returned with interest at the end of the term.
Why Are FDs Popular Among Senior Citizens?
- Stable Returns: You know exactly how much you’ll earn—no surprises.
- Higher Interest Rates: Most banks give senior citizens an extra 0.50% over standard rates.
- Flexible Tenure Options: Choose a term as short as 7 days or as long as 10 years.
- Tax Benefits: Under Section 80TTB, interest income up to ₹50,000 is tax-free for senior citizens.
see also: How to Earn ₹1.4 Lakh on a ₹10 Lakh FD in 4 Years 7 Months
Detailed Analysis of Top Banks Offering High FD Rates
1. IDFC FIRST Bank
- Interest Rate: Up to 8.40% p.a.
- Tenure: 400–500 days
- Highlights: No penalty on premature withdrawal for seniors
2. Central Bank of India
- Interest Rate: Up to 8.00% p.a. under the Cent Green Deposit
- Tenure: 3333 days (approx. 9 years)
- Highlights: Higher rate for super senior citizens (above 80 years)
3. Repco Bank
- Interest Rate: Up to 8.25% p.a.
- Tenure: Varies by deposit type
- Highlights: Competitive rates across multiple tenures
4. Yes Bank
- Interest Rate: Up to 8.00% p.a.
- Tenure: Depends on scheme
- Highlights: Multiple payout and compounding options
5. DCB Bank
- Interest Rate: Up to 7.90% p.a.
- Tenure: Flexible options
- Highlights: Personalized FD plans for seniors
6. HDFC Bank
- Interest Rate: Up to 7.90% p.a.
- Tenure: 15–18 months
- Highlights: Safe and convenient with online booking
7. ICICI Bank
- Interest Rate: Up to 7.85% p.a.
- Tenure: 15–18 months
- Highlights: Easy online management with tax-saving options
8. Axis Bank
- Interest Rate: Up to 7.75% p.a.
- Tenure: 15 months to less than 2 years
- Highlights: Premature withdrawal flexibility
9. SBI (Amrit Vrishti Scheme)
- Interest Rate: Up to 7.65% p.a.
- Tenure: 444 days
- Highlights: Backed by India’s largest public sector bank
see also: Post Office MIS Scheme: Every Month You Will Get Rs 9,250, Invest Only Once
FAQs Fixed Deposit Rates for Senior Citizens FAQs
Q1. Who is eligible for senior citizen FD rates?
Anyone aged 60 years or above qualifies for senior citizen FD benefits.
Q2. Is the interest income from senior citizen FDs taxable?
Yes, but under Section 80TTB, interest up to ₹50,000 per year is exempt from tax for senior citizens.
Q3. Which bank offers the highest FD rate for seniors in April 2025?
As of April 2025, IDFC FIRST Bank offers the highest rate at 8.40% p.a. for select tenures.
Q4. Can I break my FD early?
Yes, but premature withdrawal might attract a penalty unless specified (some banks waive this for senior citizens).
Q5. Are private banks safe for senior citizen FDs?
Yes, up to ₹5 lakh per depositor per bank is insured under DICGC, even for private banks.
