The fixed deposit rates (FD) cycle is almost close to its end, according to various industry experts. Some banks have already started reducing interest rates lately. However, some banks are still offering more than 8% interest rates on FDs to senior citizens.
Here is a list of five banks that offer the highest interest rates on senior citizen FDs maturing in three years. Do note that these interest rates are available for deposits of below Rs 2 crore as on September 23, 2023.
Also read: Will banks increase FD rates further?
DCB Bank senior citizen FD
DCB bank is offering interest of 8.35% on senior citizen FDs maturing between 25 months and less than 37 months.
However, for an FD tenure of 37 months, the DCB bank is offering an interest rate of 8.5%, one of the highest interest rates available on FDs at present.
IndusInd Bank senior citizen FD
IndusInd Bank is offering an interest rate of 8% on senior citizen FDs maturing between 33 months (two years and nine months) and 39 months (three years and three months). For FDs maturing between 19 months (one year and 7 months) and 24 months (2 years), the bank is offering an interest rate of 8.25%.
YES Bank senior citizen FD
Yes Bank is offering an interest of 8% on senior citizen FDs maturing between 36 months and less than 60 months. However, for tenure between 18 months and less than 24 months, the bank is offering an interest rate of 8.25% to senior citizens.
Senior citizen FDs with highest interest rate in 3 years
| Bank Name | Interest Rate |
| DCB Bank | 8.35% |
| Indusind Bank | 8% |
| Yes Bank | 8% |
| Bandhan Bank | 7.75% |
| IDFC First Bank | 7.75% |
Source: Compiled by ETIG; Interest rates as on September 23, 2023
Bandhan Bank senior citizen FD
Bandhan Bank is offering an interest of 7.75% on senior citizen FDs for tenures between 3 years and less than 5 years. The highest interest rate for senior citizens that Bandhan Bank offers is for 500 days (1 year, 4 months, 12 days) is 8.35%.
IDFC First Bank senior citizen FD
IDFC First Bank offers an interest rate of 7.75% on senior citizen FDs for maturing between 751 and 1095 days (3 years).
"A senior citizen investing in an FD should also note that if the interest income from all the FDs in any particular bank is more than Rs 50,000 then the bank will deduct TDS. The rate of TDS is 10%, however, doubles to 20% if the PAN is not furnished by the senior citizen. This TDS deducted can be claimed back while filing one's income tax return (ITR)," says Chartered Accountant Amit Gupta, MD, SAG Infotech, a tax software solutions company.
Further, if a senior citizen's annual income is below the basic exemption limit, he/she can submit Form 15G/H to banks so that they do not deduct TDS.
Source: Compiled by ETIG; Interest rates as on September 23, 2023
Also read: Why should someone file an ITR even if their income is below the basic exemption limit?
