Best Interest Rate on Senior Citizens Bank Fixed Deposits – December 2018

The post lists down the rate of interest on Bank fixed deposits for Senior Citizens as of December 1, 2018.

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 IDFC Bank (3 years 1 Day – 10 years) at 8.75%.

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.

Click for Best Tax Saving FDs u/s 80C

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

The highest interest rate is offered by Indus Ind Bank (270 days to below 1 years) at 8.00% .

BankDescriptionInterest Rate
Indus Ind Bank270 days to below 1 years8.00%
Ratnakar Bank241 days to 364 days7.85%
Lakshmi Vilas Bank181 – 364 days7.80%
Kotak Mahindra Bank280 Days to Less than 12 Months7.75%
Ratnakar Bank181 days to 240 days7.75%
Indus Ind Bank181 days to 269 days7.75%
Ratnakar Bank91 days to 180 days7.65%
Kotak Mahindra Bank180 Days to 270 Days7.60%
Yes Bank6 months to < 9 months7.60%
HDFC Bank9 mnths 1 day < 1 Year7.60%
Bandhan Bank6 months to less than 1 year7.55%
J&K Bank271 days to less than 1 year7.55%
DCB Bank6 months to less than 12 months7.50%
IDFC Bank181 – 365 days7.50%
Ratnakar Bank46 days to 90 days7.50%
Standard Charted Bank181-364 days7.50%
Yes Bank46 to 90 days7.50%
Yes Bank9 months to < 1 Year7.50%
Yes Bank3 months to < 6 months7.40%
Axis Bank9 months < 1 Year7.35%
DCB Bank91 days to less than 6 months7.25%
IDFC Bank91 – 180 days7.25%
Repco Bank90 days – 364 days7.25%
Tamilnad Mercantile Bank180 days to less than 12 months7.25%
Union Bank of India10 Month to 14 Month7.25%
South Indian Bank92 days to 499 days7.20%
City Union Bank181 days to 364 days7.15%
City Union Bank91 days to 180 days6.90%
Karur Vysya Bank91 Days to 180 Days6.90%
Karur Vysya Bank181 Days to less than 1 year6.90%
State Bank of IndiaGovernment Bank Benchmark6.25% – 6.90%
ICICI BankPrivate Bank Benchmark4.50% – 7.25%

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 Lakshmi Vilas Bank (450 Days) at 8.60%.

BankDescriptionInterest Rate
Lakshmi Vilas Bank450 Days8.60%
DCB Bank15 months to 24 months8.55%
IDFC Bank731 – 1095 days8.50%
Ratnakar Bank12 months to less than 24 months8.50%
Indus Ind Bank1 Years to below 1 Years 2 Months8.50%
Yes Bank18 Months 8 Days to 18 Months 18 Days8.35%
Bandhan BankAbove 18 months to less than 2 years8.30%
Axis Bank17 months < 18 months8.25%
Indus Ind Bank1 Years 2 Months to below 2 Years8.25%
Axis Bank1 year 5 days < 1 year 11 days8.20%
Lakshmi Vilas Bank1 Year to less than 3 years8.20%
Repco Bank1 Year & Above – 2 years8.20%
Axis Bank13 months < 14 months8.00%
DCB Bank24 months8.00%
IDFC Bank366 – 730 days8.00%
Kotak Mahindra Bank15 months – less than 2 Years8.00%
Standard Charted Bank18 Months – 2 Years8.00%
Yes Bank12 Months 10 Days to 12 Months 20 Days8.00%
Bandhan Bank1 year to 18 months8.00%
Federal Bank550 days8.00%
Axis Bank1 year < 2 years7.95%
DCB Bank12 months 1 day to less than 15 months7.90%
Kotak Mahindra Bank12 months – less than 15 months7.90%
South Indian Bank500 Days7.90%
Standard Charted Bank1 Year – 375 days7.90%
Karnataka Bank1 year to 2 years7.90%
Tamilnad Mercantile Bank1 Year7.90%
Repco BankRepco Mahila (18 Months, Exclusively for Women)7.80%
HDFC Bank1 year – 2 Years7.80%
J&K Bank1 year to less than 5 years7.80%
Deutsche Bank1 Year to lass than 2 Years7.75%
Karur Vysya Bank1 year to less than 2 years7.75%
Kotak Mahindra Bank2 years- less than 3 years7.75%
Yes Bank1 Year <= 10 years7.75%
Dhanalakshmi Bank500 Days7.75%
Canara Bank555 Days (Canara Shikhar Deposit)7.60%
Canara Bank444 Days (Canara Shikhar Deposit)7.55%
IDBI Bank>1 yrs to < 3 yrs7.55%
Citibank401 – 540 Days7.50%
DCB Bank6 months to 12 months7.50%
Standard Charted Bank376 days < 18 Months7.50%
Canara BankAbove 1 year to less than 2 years7.50%
City Union Bank365 days – 5 Years7.50%
Dhanalakshmi Bank365 days and above upto & inclusive of 2 years7.50%
Federal BankAbove 1 year to 2 Years7.50%
Tamilnad Mercantile Bank1 Year to less than 3 Years7.50%
South Indian Bank501 days to upto and incl. 3 years7.40%
Syndicate Bank500 days exact (Synd500)7.30%
Corporation Bank666 days only7.30%
Union Bank of India10 Month to 14 Month7.25%
Punjab and Sind Bank1 Year – 2 Years7.25%
Punjab National Bank1 Year – 3 Years7.25%
South Indian Bank92 days to 499 days7.20%
Digibank by DBS1 year to less than 5 Years7.00%
State Bank of IndiaGovernment Bank Benchmark7.30%
ICICI BankPrivate Bank Benchmark7.40% – 7.60%
Post Office FD (1 year)Post Office6.90%
Post Office FD (2 years)Post Office7.00%

Click for Best Interest Rate on Recurring Deposits

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

The highest interest rate is offered by IDFC Bank (3 years 1 Day – 10 years) at 8.75%.

BankDescriptionInterest Rate
IDFC Bank3 years 1 Day – 10 years8.75%
DCB Bank36 months8.55%
Ratnakar Bank24 months to less than 36 months8.55%
IDFC Bank731 – 1095 days8.50%
Lakshmi Vilas Bank3 Years to 10 Years8.35%
Deutsche Bank5 Years8.25%
Lakshmi Vilas Bank1 Year to less than 3 years8.20%
Axis Bank2 years < 30 Months8.15%
Bandhan Bank2 years to less than 5 years8.15%
Tamilnad Mercantile Bank1111 Days8.15%
DCB Bank24 months to 36 months8.10%
Ratnakar Bank36 months to less than 120 months8.10%
Axis Bank30 Months < 3 years8.00%
Citibank732 – 1095 Days8.00%
DCB Bank36 months to 60 months8.00%
Yes Bank36 Months 10 Days to 36 Months 20 Days8.00%
Indus Ind Bank2 years to below 61 Months8.00%
HDFC Bank2 years – 3 Years7.90%
J&K Bank1 year to less than 5 years7.80%
Axis Bank3 years < 5 years7.75%
City Union Bank1000 Days7.75%
Kotak Mahindra Bank2 years- less than 3 years7.75%
Yes Bank1 Year <= 10 years7.75%
Federal BankAbove 2 Years7.75%
HDFC Bank3 years 1day – 5 years7.75%
Karur Vysya Bank2 years and above7.50%
Kotak Mahindra Bank3 years and above but less than 5 years7.50%
Repco BankAbove 2 years – 5 Years7.50%
Standard Charted Bank2 Years – 3 Years7.50%
City Union Bank365 days – 5 Years7.50%
Deutsche Bank2 Year to lass than 5 Years7.50%
Digibank by DBS2 years & 6 months7.50%
Tamilnad Mercantile Bank1 Year to less than 3 Years7.50%
South Indian Bank501 days to upto and incl. 3 years7.40%
South Indian BankAbove 3 years to up to and incl.5 years7.40%
Tamilnad Mercantile Bank3 Years & above7.40%
Indian Overseas Bank3 Yrs and above7.30%
Digibank by DBS1 year to less than 5 Years7.00%
State Bank of IndiaGovernment Bank Benchmark7.30%
ICICI BankPrivate Bank Benchmark7.75% – 8.00%
Post Office FD (2 years)Post Office7.00%
Post Office FD (3 years)Post Office7.20%
Post Office FD (5 years)Post Office7.80%

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 IDFC Bank (3 years 1 Day – 10 years) at 8.75%.

BankDescriptionInterest Rate
IDFC Bank3 years 1 Day – 10 years8.75%
Lakshmi Vilas Bank12 Months to 120 Months8.10%
Ratnakar Bank36 months to less than 120 months8.10%
DCB BankMore than 60 months to 120 months7.75%
Yes Bank1 Year <= 10 years7.75%
Federal BankAbove 2 Years7.75%
Indus Ind Bank3 years to below 61 month7.75%
Axis Bank5 years to 10 years7.50%
Karur Vysya Bank2 years and above7.50%
Digibank by DBS5 Years7.50%
Tamilnad Mercantile Bank3 Years & above7.40%
State Bank of IndiaGovernment Bank Benchmark7.35%
ICICI BankPrivate Bank Benchmark7.50%

Interest Rate for Fixed Deposit of more than 10 Years

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

BankDescriptionInterest Rate
Ratnakar Bank121 months to less than 240 months7.70%
IDBI Bank10 Years to 20 Years6.50%

Small Banks FD Interest Rates for Senior Citizens:

RBI on September 2015 had granted licence to 10 Small Finance Banks. Lately these banks have been in news for offering higher interest rates on their fixed deposits as compared to regular banks. The table below compares the interest rate offered by Small banks. The difference is substantial for low tenure deposits – Fincare Bank offers 9.5% for 24 to 36 months deposit while SBI offers 7.3% only.

Also Read: Should you invest in Small banks Fixed Deposits?

Banks<1 year1 Year2 Years3 Years4 Years5 Years5 Year+
AU Small Finance Bank7.50%9.00%8.25%8.25%8.50%8.50%7.75%
Capital Small Finance Bank7.50%8.00%8.10%8.20%8.00%8.00%7.90%
Equitas Small Finance Bank8.00%9.25%9.30%9.30%7.50%7.50%7.50%
ESAF Small Finance Bank8.00%9.25%9.25%8.50%7.50%7.50%7.50%
Fincare Small Finance Bank7.50%9.25%9.50%9.50%8.50%8.50%7.50%
Jana Small Finance Bank9.10%9.10%9.10%9.10%9.10%9.10%7.60%
Suryoday Small Finance Bank8.00%8.75%9.00%9.25%8.25%8.50%7.50%
Ujjivan Small Finance Bank8.00%8.80%9.10%8.00%7.50%7.50%7.00%
Utkarsh Small Finance Bank8.00%9.00%9.50%8.35%7.50%8.50%7.50%
SBI6.90%7.30%7.30%7.30%7.30%7.35%7.35%

Source: Bank Websites                                          Last Updated: December 1, 2018

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

Highest Interest Rate on Bank Fixed Deposits for Senior Citizens - December 2018

Highest Interest Rate on Bank Fixed Deposits for Senior Citizens – December 2018

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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25 thoughts on “Best Interest Rate on Senior Citizens Bank Fixed Deposits – December 2018

  1. You are doing a great job. Thanks a lot for your help.

    But, I have a small concern. FD for Senior Citizen in Karur Vysya Bank (KVB) starts from 1 year (there is no scheme < 1 year) and interest rate is 7.25% (since 2017). I think most of the interest rates you mentioned in this blog are not matching with actual Interest rate from Bank portal.

    As you mentioned, KVB – 91 Days to 180 Days, interest rate is "7.40%". KVB has never revised their Interest rates since 07.05.2017 as per their portal. I am not sure from where you got this info bec. this blog was last updated on 01 Apr 018.
    http://www.kvb.co.in/global/resident_domestic_deposits.html

    I/we usually follow your blog without cross checking, bec. we blindly believe in you. If possible, I would like to request you to ensure your data is correct and not misleading others.

    Thanks!

    • Thanks for your appreciation and feedback!

      We had automated picking up interest rates from bank websites recently and I think its not working the way it should. We will look into the same.

      Also KVB does offer FD for all duration to senior citizens, its just that it does not offer any extra interest rate for other than duration mentioned! So for less than 1 year FD the interest rate would be same for general public & senior citizens.

      Also as interest rates change frequently, you must check respective websites before investing (this is true for any website including ours).

      We would make the required changes by next week when we put interest rates for May 2018.

      Thanks again

  2. Can my father get benefit of 80ttb?
    He is 61 .. Getting 70000 interest from post mis

  3. I have a query as sr citizen. I have already invested in SCSS deposit with bank. Can interest on same be included under section 80TTB for exemption upto Rs 50,000 ?

    Thanks in advance & best wishes

  4. Paras Ghealni says:

    Wow Nice information . Kindly request you to please update interest rate for co operative bank

  5. IS IT SAFE TO INVEST IN FD IN KARNATAKA BANK LTD

  6. 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!

  7. 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.

  8. 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.

  9. srinivasan v says:

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

  10. Thanks for sharing list.

  11. 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.

  12. 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.

  13. 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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