Best Senior Citizen Fixed Deposit Rates in 2025

Retirement is the time to enjoy life without worrying about finances. To that end me, senior citizen fixed deposits are the best way to secure your savings.

This is because FDs offer a perfect blend of safety, steady income and high returns. With higher interest rates and guaranteed returns, fixed deposits make sure that your hard-earned savings continue to grow without getting affected by the ups and downs of the market. No matter if you are looking to build a regular income stream or grow your wealth for future needs, GenWise is a senior citizens club that is here to help you achieve your financial goals by guiding you about the best senior citizen FDs. 

Why Should Senior Citizens Invest in Fixed Deposits?

Before talking about the best FD for senior citizens, here are a few reasons why senior citizens should consider FDs:

• Senior citizens get 0.5% extra interest on FDs compared to other investors.
• FDs offer fixed returns, making them a reliable option for retirees.
• Senior citizens' fixed deposits are insured up to ₹5 lakhs per bank under DICGC. 
• Senior citizens can choose monthly, quarterly, or annual interest payouts.
• You can get a loan against your FD at a lower interest rate instead of breaking it.
• No TDS up to rupees one lac for senior citizen FD rate under Section 80TTB.

Top Banks Offering the Best FD Rates for Senior Citizens

When we talk about senior citizen fixed deposits, many banks, including small finance banks, private banks, and public sector banks, offer attractive FD rates to help senior citizens maximize their savings.

1. Small Finance Banks

Small finance banks are a highly sought-after option when we want to do FD for senior citizens:

• Unity Small Finance Bank – 9.50% for a 1001-day FD.
• Suryoday Small Finance Bank – 9.10% for 5 years, 8.75% for 1 to 3 years 
• Equitas Small Finance Bank – 9.00% for 888 days.
• Ujjivan Small Finance Bank – 8.75% for an 18-month FD (deposits below Rs crore).

2. Non-Banking Financial Corporation (NBFCs)

These NBFCs also provide very good senior citizen FD rates:

• Shriram Finance – 9.07% p.a. This fixed deposit scheme for senior citizens does not require any video KYC and also offers an extra 0.1 percent interest rate for women. 
• Bajaj Finance – 8.85% p.a with no requirement of video KYC. 
• Mahindra Finance – 8.35% p.a. and the scheme does not require any video KYC. 

3. Private Sector Banks 

If you are looking for senior citizen FD rates for short, medium-term deposits, private sector banks can be a good choice for you.

• YES Bank – 8.50% for 18 months.
• Bandhan Bank – 8.55% for 1 year.
• IndusInd Bank – 8.49% for 1 year 5 months.
• DCB Bank – 8.25% for deposits over 12 months to 12 months and 10 days.

4. Public Sector Banks 

Public sector banks provide stable returns on senior citizen fixed deposits.

• Punjab & Sind Bank – 7.95% for 555 days.
• Bank of Maharashtra – 7.95% for 366 days.
• Bank of Baroda – 7.8% for 400 days.
• Canara Bank – 7.9% for 3 years to less than 5 years.
• State Bank of India – 7.75% for 444 days.

How GenWise Offers The Best FD For Senior Citizens

GenWise offers the best FD schemes for senior citizens by featuring the best financial institutions that provide high interest rates to promote maximum returns on savings. 

The FDs provided by GenWise are definitely the best as their partner banks like Unity Small Finance Bank and Suryoday Small Finance Bank offer some of the highest rates in the market, making them top choices for long-term savings. 

Furthermore, NBFCs like Shriram Finance (9.07% p.a.), Bajaj Finance (8.85% p.a.) and Mahindra Finance (8.35% p.a.) provide highly competitive FD rates without the need for video KYC, ensuring a hassle-free investment process. 

Tips to Maximize FD Returns

To get the highest benefits on senior citizen fixed deposits, you need to manage your investments wisely. This is how you can maximize your FD returns:

• Plan your investments by checking if your bank offers higher interest rates on FD renewals.
• You can opt for auto-renewal features to avoid missing out on higher rates at maturity.
• Filing tax returns on time prevents unnecessary deductions.
• Use Form 15H (for senior citizens) or Form 15G (for those below the taxable income limit) to avoid TDS deductions.
• Keep checking tax law changes to benefit from exemptions. (If your total income is below the taxable limit, you may be eligible for tax-free FD interest)

• FD laddering is a smart method where you split your investment across multiple FDs with different tenures. This way you don’t lock all your funds in one long-term FD.
• Different maturity dates help you manage taxation better and you are also able to reinvest at higher rates if FD rates increase.
• Cumulative FDs are good for long-term wealth growth and  Non-Cumulative FDs are ideal for those who need regular income.
• A mix of short and long-term FDs ensures you always have funds available when needed.

Conclusion

FDs for senior citizens provide high interest, stability, regular income and tax benefits. Needless to say, it is one of the safest and most rewarding investments for retirees!

GenWise makes it even easier by offering the best FD schemes from top banks and NBFCs, making them excellent choices for FDs for senior citizens. From enjoying a steady stream of income to experiencing wealth growth, GenWise gives you options that offer the best of both worlds. 

FAQs

Who is eligible for a senior citizen FD, and what documents are required?

Senior citizen fixed deposits can be availed by citizens aged 60 years or above. Some banks allow early retirees (55+ years) to apply under specific conditions. In fact, NRIs can also open FDs through NRE/NRO accounts. 

What are senior citizen fixed deposits, and how do they differ from regular FDs?

Senior citizen FDs are for individuals aged 60 and above. The senior citizen FD rates are 0.5% to 0.75% higher than regular FDs. These FDs offer flexible tenures from 7 days to 10 years. Senior citizen fixed deposits are also endowed with special tax benefits under section 80TTB making them a reliable post-retirement investment.