Senior Citizen FD Rates 2026 — All Banks Compared
What each bank actually pays a depositor aged 60 and above — the premium over its own card rate, and the tenure where that senior rate peaks.
- Best senior rate 8.00% (AU SFB, 2–3 years)
- Typical premium 0.50 percentage points
- Banks tracked 8
- Verified 16 July 2026
A senior-citizen FD is not a separate product — it is the bank’s ordinary fixed deposit with an extra margin added to the card rate. That matters when you compare: a bank advertising a generous premium on a weak card rate can still pay less than a bank with a strong card rate and a smaller premium. The column that decides it is the senior rate itself, which is what this table ranks.
| Bank | Type | 1-yr regular | 1-yr senior | Premium | Peak senior rate |
|---|---|---|---|---|---|
| AU Small Finance Bank | SFB | 7.25% | 7.75% | +0.50 | 8.00% (2–3 years) |
| Bank of Baroda | PSU | 6.85% | 7.35% | +0.50 | 7.65% (2–3 years) |
| Axis Bank | Private | 6.70% | 7.20% | +0.50 | 7.60% (2–3 years) |
| Kotak Mahindra Bank | Private | 7.10% | 7.60% | +0.50 | 7.60% (1 year) |
| State Bank of India | PSU | 6.80% | 7.30% | +0.50 | 7.50% (2–3 years) |
| HDFC Bank | Private | 6.60% | 7.10% | +0.50 | 7.50% (2–3 years) |
| ICICI Bank | Private | 6.70% | 7.20% | +0.50 | 7.50% (2–3 years) |
| Punjab National Bank | PSU | 6.80% | 7.30% | +0.50 | 7.30% (1 year) |
Rates verified 16 July 2026. See how we source and check rates.
Work out what the premium is worth to you
The percentage gap is small; the rupee gap over a long tenure is not. Put your amount and tenure through the FD calculator at both the regular and the senior rate and compare the maturity figures — that difference, not the headline rate, is what you are choosing between. If you are laddering deposits rather than booking one, the FD laddering guide covers how the tenure split changes the result.
Tax on senior citizen FD interest
The higher rate does not change how the interest is taxed. FD interest is taxable as income from other sources at your slab rate, and the bank deducts TDS once your interest with that bank crosses the applicable threshold. Senior citizens get a higher TDS threshold than other depositors, a deduction on deposit interest under Section 80TTB, and the option of filing Form 15H so the bank stops deducting TDS when total income falls below the taxable limit. Those thresholds are reset by each Finance Act, so confirm the current figures with your bank before you rely on them. Work out the slab itself with the income tax calculator.
Frequently asked questions
- How much extra interest do senior citizens earn on a fixed deposit?
- Across the 8 banks tracked here the senior-citizen premium runs to 0.50 percentage points above the same bank's card rate for the same tenure. It is added to the card rate rather than being a separate product, so a bank with a poor card rate and a generous premium can still pay less overall than a bank with a strong card rate.
- Which bank pays the highest senior citizen FD rate in 2026?
- Of the banks tracked here, AU Small Finance Bank currently pays the highest senior-citizen rate at 8.00% on its 2–3 years tenure. Rates move often — check the bank's own page for the date each figure was last verified before you act on it.
- At what age do senior citizen FD rates start?
- Banks apply senior-citizen rates from age 60. The deposit generally has to be held in the senior citizen's own name for the higher rate to apply — a joint deposit usually qualifies only when the senior citizen is the first holder. Some banks run a further super-senior slab; check the bank's page for its own rules.
- Is senior citizen FD interest taxable?
- Yes. FD interest is taxable as income from other sources whatever your age, and banks deduct TDS once your interest crosses the applicable threshold. Senior citizens get a higher TDS threshold than other depositors, can claim a deduction on deposit interest under Section 80TTB, and may file Form 15H to stop TDS being deducted when their total income is below the taxable limit. The exact thresholds change with each Finance Act — confirm the current figures before relying on them.
- Does the senior citizen rate apply to every tenure?
- Every bank tracked here offers a senior premium across its whole tenure range, but the size of the premium and the tenure where the senior rate peaks both vary by bank. The table above shows each bank's peak senior rate and the tenure it applies to, which is often not the tenure with the best regular rate.
Per-bank senior citizen rates
Full tenure-wise tables, premature-withdrawal rules and the date each was verified: