Senior citizens can now earn up to 7.95% FD interest at Bandhan Bank as lender hikes fixed deposit rate

Senior citizens can earn up to 7.95% interest rate on their fixed deposit (FD) investments at Bandhan Bank as the lender has increased its FD rate by 20 basis points on a select tenure. The new FD rates are applicable from June 20, 2026, Bandhan Bank says in a statement on Wednesday.

After the FD rate revision, Bandhan Bank offers its highest interest rate of 7.95% to the senior citizen customers on tenures of two years to less than three years. On the same FD tenure, other customers will earn a 7.45% rate.

The bank is also offering an attractive interest rate of 7.75% to senior citizens on fixed deposit tenures of three years to less than 5 years. Others will earn a 7.25% rate for the same term deposits, which is one of the best FD interest rates in the banking industry, as per a Bandhan Bank press release.


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Details of Bandhan Bank FD interest rates & tenures are as below:

Bucket	Interest rates for general citizens	Interest rates for senior citizens
7 days to 14 days	2.95%	3.70%
15 days to 30 days	2.95%	3.70%
31 days to less than 2 months	3.45%	4.20%
2 months to less than 3 months	4.20%	4.95%
3 months to less than 6 months	4.20%	4.95%
6 months to less than 1 year	4.20%	4.95%
1 year	7.00%	7.50%
1 year 1 day to 1 year 9 months	7.00%	7.50%
1 year 9 months 1 day to less than 2 years	7.00%	7.50%
2 years to less than 3 years	7.45%	7.95%
3 years to less than 5 years	7.25%	7.75%
5 years to up to 10 years	5.85%	6.60%

Bandhan Bank savings account interest rates

Bandhan Bank also offers an interest rate of 6.5% on savings account balances above Rs 5 lakh to Rs 10 lakh.

Balance Bucket	Interest Rate (p.a.)
Balance up to ₹1 lakh	2.70%
Balance above ₹1 lakh to ₹5 lakh	2.70%
Balance above ₹5 lakh to ₹10 lakh	6.50%
Balance above ₹10 lakh to ₹50 lakh	5.35%
Balance above ₹50 lakh to ₹5 crore	5.55%
Balance above ₹5 crore to ₹50 crore	6.00%
Balance above ₹50 crore to ₹250 crore	6.00%

Premature FD withdraws rules

If you withdraw your deposit before maturity, a 1% penalty will be applied. In such cases, interest will not be paid at the originally agreed rate. Instead, the bank will pay interest at the rate applicable to the amount withdrawn and for the period the money remained with the bank, after deducting a 1% penalty.

Reinvestment of FD

In case of reinvestment deposits, the interest reinvested is post-TDS recovery and hence the maturity amount for re-investment deposits would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

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TDS rules for FD

Tax deducted at source (TDS) is applicable for Interest earned over Rs 50,000 for general customers and Rs 1,00,000 for senior citizen customers in a year.

Fixed deposit customers can submit Form 121 as applicable if the annual income is below limit. Additionally, Form 121 has to be submitted by customers for any new retail term deposit (RTD) booking during a Financial Year.