5 PSU, private banks offering more than 8% FD interest rate for senior citizens

In tandem with the Reserve Bank of India repo rate hikes, many banks have been increasing the interest rates on fixed deposits. Though banks are in a rate hike spree and pass the benefits to customers, there are only few banks which offer best rates to senior citizens.

Here is a quick comparison of PSU and private banks offering 8% and above for senior citizen customers.

Also read: Latest Bank Fixed Deposit (FD) Interest Rates in India for 2023


Axis Bank
Axis Bank offers the best FD interest rate of 8.01% for senior citizens on tenure of 2 years to less than 30 months.

Punjab National Bank
Punjab National Bank offers the best FD interest rate of 8.05% for super senior citizens on tenure of 666 days.

DCB
DCB offers the best FD interest rate of 8.35% for senior citizens on tenure of more than 700 days to less than 36 months. The bank offers 8% on 18 months to less than 700 days.

IDFC FIRST Bank
IDFC FIRST Bank offers the best FD interest rate of 8.00% for senior citizens on tenure of 18 months - 1 day - 3 years.

Yes Bank
Yes Bank offers the best FD interest rate of 8.00% for senior citizens on special fixed deposits offered by banks on FD tenure of 25 months. On a special deposit tenure of 35 months, the bank offers 8.25% interest rate.

Other banks
Other big banks like HDFC Bank and ICICI Bank offer the highest interest rate of 7.50% to senior citizens(excluding special deposits offered by the banks). Canara bank offers the highest interest rate of 7.65% on tenure of 444 days for senior citizens.

Who is a senior citizen
An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered a Senior Citizen. A Super Senior Citizen is an individual resident who is 80 years or above.

TDS on Senior citizen FD
Banks will deduct TDS at a rate of 10% and 20% TDS if neither the PAN nor the Forms 15G and 15H are submitted. For senior adults 60 years of age and older, the annual maximum for FD interest income is Rs 50,000; after that, banks impose a 10% TDS.