Public sector banks in India are offering competitive interest rates for senior citizen FDs in April this year. These schemes are designed to provide stability, low risk, and predictable earnings, making them a practical choice for retirees managing daily expenses and long-term needs.
Here are some top PSU banks offering strong FD rates
Several public sector banks are currently offering good interest rates for senior citizens across different time periods. These rates may vary slightly depending on the deposit amount and tenure.
- Punjab and Sind Bank is offering one of the highest rates at 7.25% for a 666-day tenure. For shorter and longer periods, it offers around 6.35% for 1 year, 3 years, and even 10 years, while the 5-year rate stands at 6.45%.
- Bank of Maharashtra offers a top rate of 7.15% for 400 days. Its 1-year FD rate is 6.7%, while 3-year deposits fetch 5.75%. For 5 and 10 years, the rate remains at 5.5%.
- Punjab National Bank provides up to 7.1% for a 444-day tenure. It offers 6.75% for 1 year, 6.8% for 3 years, 6.6% for 5 years, and again 6.8% for 10 years.
- Bank of Baroda gives a maximum of 7% for deposits above 5 years and up to 10 years. For shorter periods, the rates are 6.6% for 1 year, 6.75% for 3 years, and 6.9% for 5 years.
- Bank of India offers 7.1% for 450 days. Its 1-year FD gives 6.75%, 3-year gives 7%, while 5-year and 10-year options offer 6.75%.
- Canara Bank also provides a top rate of 7.1% for 555 days. Across 1, 3, 5, and 10 years, the rates stay around 6.75%.
- State Bank of India offers up to 7.05% for deposits between 5 and 10 years. Its 1-year rate is 6.75%, 3-year is 6.8%, and both 5-year and 10-year deposits offer 7.05%.
Why fixed deposits matter after 60 years
After the age of 60, income usually becomes limited. Fixed deposits help provide a steady flow of money without taking risks. Senior citizen FDs also offer slightly higher interest rates compared to regular deposits.
They can help cover daily needs, medical expenses, and other personal costs. For many retirees, keeping their savings safe is more important than taking risks for higher returns.
Public sector banks are often preferred because they are backed by the government. This adds a sense of safety and reliability, which is important for older investors.
Things to check before choosing an FD
– Safety should always come first. It is important to choose a bank that is stable and well-known, even if another option offers slightly higher interest.
– You should also check the rules for early withdrawal. Some banks charge penalties if you break the FD before time, so it is good to understand these terms in advance.
– The tenure should match your needs. Locking money for too long may not be ideal if you might need funds later. Shorter or flexible options can be more useful.
– It is also important to look at extra benefits. Some banks offer higher rates for people above a certain age, along with flexible payout options.
– Lastly, keep in mind that FD interest is taxable. It is better to look at returns after tax and consider how inflation may affect your savings over time.
Please note: Rates are as of April 2026 based on official bank websites and may vary by tenure, deposit size, and special schemes.
