FD rate up to 7.85% for senior citizens investing for three years; Know the list of banks

There are still some banks which continue to offer up to 7.85% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for three year tenure and not exceeding Rs 3 crore.

Read below to know the list of banks offering FD interest rate up to 7.85%.

Bank FD interest rate for senior citizens

FD rate up to 7.85%

YES Bank is offering 7.85% interest rate on FD of three year tenure.

FD rate up to 7.8%

SBM Bank India is offering 7.8% interest rate on FD of three year tenure.

FD rate up to 7.75% for senior citizens

Bandhan Bank is offering 7.75% interest rate on FD for three year tenure for senior citizens.

Table showing bank FD rate for three year tenure for senior citizens

Bank name	Interest rate
YES Bank	7.85%
SBM Bank	7.8%
Bandhan Bank	7.75%
RBL Bank	7.6%
IndusInd Bank	7.5%

Source: Paisabazaar.com as of July 2, 2025

FD rate up to 7.6% for senior citizens

RBL Bank is offering 7.6% interest rate on FD for three year tenure.

FD rate up to 7.5%

IndusInd Bank is offering up to 7.5% interest rate on FD for three year tenure.

When is TDS deducted from bank FDs?

Tax Deducted at Source (TDS) is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax refund.

For instance, if a senior citizen’s income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax regime.

Moreover, a senior citizen can submit Form 15H to prevent TDS deduction if his total income after all deductions claim and Section 87A rebate is below the taxable limit like Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax regime.

Despite the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations.

Form 15H applies based on the final tax liability after considering exemptions and rebates.

• New tax regime: Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26.
• Old tax regime: In the old tax regime, the exemption limit is Rs 3 lakh (enhanced to Rs 5 lakh for taxpayers aged 80 years or more), and the 87A rebate applies for income up to Rs 5 lakh, allowing Form 15H submission for FY 2025-26, if the total taxable income does not exceed this threshold.