• Source:JND
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FD Rate For Senior Citizen In 2026: After the Reserve Bank (RBI) of India reduced the repo rate by 125 points over the past year, which has resulted in a decline in interest rates on Fixed deposits (FDs), as banks and non-banking financial institutions (NBFCs) have gradually reduced deposit rates on FDs across tenures.

This brings a major concern to the senior citizens who usually consider FDs as their trusted investment tool. Many senior citizens depend on FD income for their day-to-day expenses. 

Considering the value of senior citizens'money, the majority of banks offer a bit more interest on FDs for them as compared to the general public. 

Meanwhile, Several banks--including public and private sector lenders--  are offering a decent interest rate on deposits despite the rate cuts. Banks are offering deposit rates up to 7.75% for senior citizens in February 2026. 

Senior Citizen FD Rates In Public Sector Banks

  • Bank of Baroda's highest fd interest rate for seniod citizen is 7 per cent
  • The highsest fixd deposit rate in Punjab National Bank for senion citizen is 6.90 per cent
  • The Central Bank of India offers the highest rate of 6.75 per cent on FDs to senior citizens. 
  • The maximum fixed deposit interest rate in Bank of Maharashtra and Union Bank is 6.70 per cent. 

Senior Citizen Fixed Deposit Rate In Private Sector Banks

  • Yes, Banks' offer the highest deposit rate of 7.75 per cent for senior citizen fixed deposits 
  • Bank offers a higher rate at 7.70 per cent
  • The highest interest rate in RBL Bank is Rs 7.70 per cent
  • IDFC First Bank and IndusInd offer 7.50 per cent interest on senior citizen FDs.

Insurance On Fixed Deposit

Though the fixed dedepositsre considered as risk free investment as they are not linked to the volatility of the equity market, they are not completely risk-free. 

In case the bank goes bankrupt, or there is any unfavourable situation, you are eligible to claim up to Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC). 

This is a key reason why senior citizens prefer public sector banks over private sector lenders or NBFC as they have more trust on government's lender. 

Meanwhile, if you have a deposit of more than Rs 5 lakh, you must split the deposit into two or three separate banks for safety purposes. 

Always Compare Fixed Deposit Rates Before Investing

As a senior citizen, earning a better risk-free income should be a goal and comparing the interest rates of several banks would help in it. 

If you prefer a public sector bank for your deposit, you should ccompare thefixed deposit rate of a government lender for the time period you want to invest in. 

If you wish to put your money in some special FD schemes, then the comparison would help you choose the best-suited FD scheme for you. 

Loan On Fixed Deposit

Many times, a situation arises where you think of breaking your FD before maturity. But, in such a scenario, you have the option to take a loan against the FD instead of breaking the FD. This will help you in securing the maximum benefit of your fixed deposit. 

The interest rate on these loansise usually lower compared to a personal loan as banks take your FD as collateral.  


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