Top Banks Offering Up to 7.5% FD Interest Rates for Senior Citizens in 2025

Fixed Deposits (FDs) continue to be the most trustworthy investments in terms of safety for senior citizens thus remained a wonderful asset class to be considered for the year 2025. Guaranteed returns along with flexible tenures are thus a lullaby of safety and a steady income stream too. Most of the leading banks are coming up with interest rates as high as 7.5 percent for senior citizens. Top Banks Offering Up to 7.5% FD Interest Rates for Senior Citizens in 2025.

Top Banks Offering Up to 7.5% FD Interest Rates

Government banks are always the first choice of senior citizens for the safety and trust factor.

State Bank of India (SBI): Offering FD interest rates up to 7.5% for certain tenures under its special senior citizen schemes, the largest bank in India.

Bank of Baroda: Offers a maximum 7.5% interest on medium-term deposits for senior citizens, making this an attractive option for a regular income.

Bank of India: The bank offers interest rates around 7.4%–7.5%, depending upon the tenure and amount invested.

These banks generally offer good safety assurance, along with moderate to low, yet guaranteed returns; that is why they can be regarded as good for retirees who are foremost in capital protection.

Private Banks Offering Close to 7.5%

These private sector banks have come up with enhanced FD rates because they want to remain competitive.

HDFC Bank: Giving almost 7.55% to senior citizens for certain time periods of deposit.

ICICI Bank: Subject to terms. It offers interest rates around 7.5%, with more flexibility of tenure options and quarterly interest pay-outs.

Axis Bank: Fulfils about 7.4% for some special tenures, making it a very good combination of return and reliability.

Such banks give priority to higher rates along with digital conveniences, speed in account opening, and flexible withdrawal terms.

Important Things to Note

Check Tenure: Normally, the high rates apply to specific periods, such as 1 or 2 years.

Senior Bonus: Most banks give an additional 0.25-0.50% interest for senior citizens.

Tax Implications: Interest is taxable but seniors can file Form 15H to avoid TDS, if applicable.

Deposit Safety: The bank must be covered under the ₹5 lakh DICGC insurance limit per depositor.

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