FD Rates: In July 2025, some banks are offering up to 7.85% interest on three-year FDs to investors above 60 years of age. If you are a senior citizen and want to earn good money at a fixed rate by locking your savings in FD, then check the details here.
Senior Citizen FD Rates: If you are 60 years or above and you want to earn safely by staying away from the fluctuations of the stock market, then bank fixed deposit (FD) is a good option for you. The good thing is that till July 2025, some banks are giving up to 7.85% interest to senior citizens on three-year FD. This scheme is applicable on deposits up to Rs 3 crore, and on this much interest, good earnings can be made in three years. Apart from this, if your total annual income does not come under the tax bracket, then you can also avoid TDS on FD by filling Form 15H.
Where can senior citizens get the highest interest on FDs?
The following banks are offering better returns on 3-year senior citizen FDs. Check out the details one by one here
Indusind Bank
Indusind Bank offers senior citizens an interest rate of 7.5% on FDs for three years. This rate serves as an option for safe and stable income.
RBL Bank
RBL Bank offers 7.6% interest to senior citizens on three-year FDs. This rate is suitable for those looking for safe and decent returns.
Bandhan Bank
Bandhan Bank offers 7.75% interest on 3-year FDs to its senior citizen customers. This bank is popular in rural and semi-urban areas.
SBM Bank India
SBM Bank India is offering 7.8% interest to senior citizens on FDs with a tenure of three years. This rate is attractive for investors looking for stable returns
Yes Bank
YES Bank is offering the highest interest rate of 7.85% on three-year fixed deposits to senior citizens. This rate is considered to be the most competitive in the current market.
Among these banks, YES Bank is offering the highest interest rate of 7.85%, which is a great opportunity for senior citizens.
When and why is TDS deducted on FD?
If the annual interest from your fixed deposit (FD) exceeds Rs 1 lakh, then the bank is required to deduct TDS i.e. Tax Deducted at Source as per the rules, whether your total income falls under the tax bracket or not. This TDS is not an extra tax, rather you can adjust it while filing your income tax return (ITR) or get it back as a refund. For example, if the total annual income of a senior citizen is Rs 11 lakh and he adopts the new tax regime, then he does not have to pay any tax under section 87A, because in the financial year 2025-26, tax is completely waived on income up to Rs 12 lakh. Despite this, the bank deducts TDS because it does not know your total tax liability and it automatically deducts tax by looking only at the amount of interest. In such a situation, if your total income is less than the tax exemption limit, then you can avoid TDS by submitting Form 15H.
How to avoid TDS through Form 15H?
If you are 60 years or older and your total taxable income is less than the exemption limit set by the government, you can avoid TDS on fixed deposits by submitting Form 15H to the bank. In the new tax system, there is no tax on income up to ₹ 12 lakh due to 87A rebate, whereas in the old system this limit is up to ₹ 5 lakh (a basic exemption of ₹ 5 lakh is also available for those above 80 years of age). In such a situation, if your total income is within these limits, then by filling Form 15H, the bank will not deduct TDS.
See this list also
| Annual Interest Rate (%) on 3 Year Senior Citizen FD in Private Bank | |
| Name of the Bank | Annual Interest Rate (%) |
| Axis Bank | 7.00 |
| Bandhan Bank | 7.75 |
| City Union Bank | 6.90 |
| CSB Bank | 6.25 |
| indian bank | 6.95 |
| DCB Bank | 7.25 |
| Federal Bank | 7.20 |
| HDFC Bank | 6.95 |
| ICICI Bank | 7.10 |
| IDFC FIRST Bank | 7.25 |
| IndusInd Bank | 7.50 |
| Jammu & Kashmir Bank | 7.25 |
| Karur Vysya Bank | 7.00 |
| Karnataka Bank | 6.65 |
| Kotak Mahindra Bank | 6.90 |
| RBL Bank | 7.60 |
| SBI Bank | 7.80 |
| South Indian Bank | 6.70 |
| Tamilnad Mercantile Bank | 6.75 |
| Yes Bank | 7.85 |
| Annual interest rate (%) on 3-year Senior Citizen FD in Public Sector Bank | |
| Name of the Bank | interest rate |
| Bank Of Baroda | 7.00 |
| Bank of India | 7.00 |
| Maharashtra Bank | 6.70 |
| Canara Bank | 7.00 |
| Central Bank Of India | 7.25 |
| Indian Bank | 6.75 |
| Indian Overseas Bank | 6.80 |
| Punjab National Bank | 6.90 |
| Punjab & Sind Bank | 6.50 |
| State Bank Of India | 6.80 |
| Union Bank Of India | 7.10 |
( Note: This information related to senior citizen interest rate has been collected by Paisa Bazaar.com. Updates till 2 July 2025 are given here. Banks keep changing their interest rates from time to time. In such a situation, investors are advised to confirm the interest rate from the official website or branch of the concerned bank before investing money in the scheme of any of the above banks.)
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