Senior citizen fixed deposit interest rates; FD rates: Some of the biggest commercial banks in India, including SBI, HDFC Bank, ICICI Bank, Axis Bank and Bank of Baroda, pay annual interest to the tune of 3.5-7.75 per cent on fixed deposits to their senior citizen customers, and 3-7.25 per cent to other depositors. On June 8, the RBI kept the repo rate — the interest rate at which the central bank lends money to commercial banks — on hold at 6.5 per cent, following a similar move in its April review after raising the key lending rate by 250 basis points in six instalments starting May 2022. Will the status quo on the benchmark interest rate impact the interest you get on fixed deposits?

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Many banks have been increasing their fixed deposit interest rates for senior citizens and other depositors over the past few months, taking cues from the RBI's rapid hikes to counter sticky inflation.

Given this potential shift in interest rates, it is imperative that senior citizens and other FD investors revise their investment strategy carefully. While fixed deposits continue to be a safe investment option, diversifying the portfolio to include other financial instruments may be a smart move, say financial planners.

Senior citizen FD interest rates  

With the RBI's decision to halt aggressive hikes in the key lending rate, it is anticipated that banks may refrain from raising the FD rates further. In fact, any reduction in the repo rate in the coming months may even prompt commercial banks to trim the returns offered to term depositors.

Here's a quick comparison of the FD interest rates offered to senior citizens and other depositors, according to the banks' websites:    

Bank

General public

Senior citizens

RBL Bank

3.50% - 7.80%

4.00% - 8.30%

IDFC First Bank

3.50% - 7.75%

4.00% - 8.25%

KVB Bank

4.00% - 7.50%

4.50% - 8.00%

Canara Bank

4.00% - 7.25%

4.00% - 7.75%

Punjab National Bank

3.50% - 7.25%

4.00% - 7.75%

Bank of Baroda

3.00% - 7.25%

3.50% - 7.75%

Axis Bank

3.50% - 7.10%

3.50% - 7.85%

HDFC Bank

3.00% - 7.25%

3.50% - 7.75%

State Bank of India

3.00% - 7.10%

3.50% - 7.60%

ICICI Bank

3.00% - 7.10%

3.50% - 7.60%

IDBI Bank

3.00% - 6.75%

3.50% - 7.25%

IndusInd Bank

6.25% - 7.75%

6.75% - 8.25%

UCO Bank

2.90% - 7.15%

2.90% - 7.20%

Central Bank of India

3.50% - 6.75%

4.00% - 7.25%

Indian Bank

2.80% - 6.70%

3.30% - 7.20%

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