Top FD Options for Seniors: Earn Up to 8% Interest Annually with These High-Yielding Fixed Deposits – View Complete List on Goodreturns

by | Jan 4, 2026 | Axis bank, HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, State Bank of India

Best Fixed Deposits for Senior Citizens: Earn Up to 8% Annual Return

As a senior citizen, it’s essential to invest in a secure and stable financial instrument that provides a regular income stream. Fixed Deposits (FDs) are an excellent option, offering a fixed return on investment with minimal risk. Here’s a list of the best FDs for senior citizens, providing up to 8% annual return.

Top Banks Offering High-Return FDs for Senior Citizens

Several banks in India offer attractive interest rates on FDs for senior citizens. Some of the top banks include:

  1. Yes Bank: Offers 7.50% interest rate for 3-4 year tenure and 7.25% for 2-3 year tenure.
  2. IndusInd Bank: Provides 7.40% interest rate for 3-4 year tenure and 7.20% for 2-3 year tenure.
  3. Kotak Mahindra Bank: Offers 7.30% interest rate for 3-4 year tenure and 7.10% for 2-3 year tenure.
  4. HDFC Bank: Provides 7.25% interest rate for 3-4 year tenure and 7.00% for 2-3 year tenure.
  5. ICICI Bank: Offers 7.20% interest rate for 3-4 year tenure and 6.95% for 2-3 year tenure.

Other Banks Offering Attractive FD Rates

In addition to the above-mentioned banks, other financial institutions also offer competitive interest rates on FDs for senior citizens. These include:

  1. Bajaj Finance: Offers 8.00% interest rate for 3-4 year tenure.
  2. Mahindra Finance: Provides 7.80% interest rate for 3-4 year tenure.
  3. SBI: Offers 7.10% interest rate for 3-4 year tenure.
  4. Axis Bank: Provides 7.05% interest rate for 3-4 year tenure.

Key Benefits of FDs for Senior Citizens

Fixed Deposits offer several benefits for senior citizens, including:

  1. Guaranteed Returns: FDs provide a fixed return on investment, ensuring a regular income stream.
  2. Low Risk: FDs are a low-risk investment option, making them ideal for senior citizens.
  3. Flexibility: FDs offer flexible tenure options, allowing senior citizens to choose the investment period that suits their needs.
  4. Tax Benefits: Interest earned on FDs is taxable, but senior citizens can claim a deduction of up to Rs. 50,000 under Section 80TTB.

In conclusion, senior citizens can earn up to 8% annual return on their investments by opting for the best FDs offered by various banks and financial institutions. It’s essential to compare the interest rates and tenure options before making an investment decision.