Bank FD rates for Senior citizens: How much will they earn from different banks? Check Bank of India, SBI and more

Senior citizens can earn up to 7.45% yearly interest in fixed deposits. The Bank of India offers this rate, the highest among major public sector banks. At ₹1 lakh, this means ₹7,450 per year, before tax and without compounding. For ₹5 lakh, the same calculation gives ₹37,250 per year.

However, earnings depend on the bank, the deposit period and the FD rates. The highest advertised rate does not apply to every deposit period. Readers should, therefore, confirm rates with their bank before depositing money.

Among the highest FD rates, Punjab & Sind Bank ranks next at 7.35%. This works out to ₹7,350 per ₹1 lakh. Bank of Baroda and Central Bank of India each show 7.25%. At that rate, ₹1 lakh earns ₹7,250 yearly.

Bank of Maharashtra and Indian Bank have peak rates of 7.15%. Canara Bank, Indian Overseas Bank and Punjab National Bank each list 7.10%. State Bank of India and Union Bank of India show 7.05%. UCO Bank has the lowest peak rate in this comparison, at 6.95%.

The gap between the highest and lowest peak rates is modest. For ₹1 lakh, the yearly difference is ₹500 before tax. For ₹5 lakh, that difference increases to ₹2,500. Small differences matter when investing larger amounts.

How much different deposit periods will earn

For one year, Bank of India and Indian Overseas Bank lead with 7%. A ₹1 lakh deposit would earn ₹7,000 before tax, without compounding. Bank of Maharashtra follows at 6.90%, giving ₹6,900 on the same basis.

Several banks, including the State Bank of India, offer 6.75% for one year. Bank of Baroda, Canara Bank and Punjab National Bank also offer this rate. Punjab & Sind Bank and UCO Bank offer the lowest yearly rate, at 6.35%. That means ₹6,350 on ₹1 lakh, using the same calculation.

For three years, the Bank of India leads at 7.45% annually. Without compounding, ₹1 lakh would earn ₹22,350 over three years. The total would therefore become ₹1,22,350 before tax. This assumes the interest remains separate and earns no further interest.

For five years, the State Bank of India leads at 7.05%. Using simple interest, ₹1 lakh would earn ₹35,250 over five years. The deposit and interest together would total ₹1,35,250 before tax. Bank of Baroda follows with a five-year rate of 6.90%.

Bank of Maharashtra offers 5.50% for five years, the lowest figure among major banks. This comparison shows that keeping money longer does not always mean higher yearly interest.

Actual earnings can differ when interest is added back to the deposit. This is called compounding, where earlier interest also starts earning interest. Find out the Power of Compounding.

Disclosure: The bank rates have been sourced from Paisabazaar. The rates were updated on 16 September 2026.