Which Bank Offers The Best FD Returns For Senior Citizens? Compare 1-, 3-, & 5-Year Schemes

Mon, 17 Feb 2025 16:11:29 IST

Fixed Deposits (FDs) continue to be a preferred choice of investment for many, thanks to their safety and assured returns. With fluctuating market conditions, people often turn to banks offering competitive interest rates on FDs. Leading banks in India, such as SBI, ICICI, HDFC, and Axis, have updated their FD schemes with attractive returns for both regular investors and senior citizens. The rate of return is a key factor that influences the decision-making process for FD investments. Below is a breakdown of the top banks offering some of the best FD rates, along with the returns you can expect on investments of Rs 1 lakh.

State Bank of India (SBI)
SBI, India’s largest public sector bank, has consistently provided competitive interest rates on Fixed Deposits. For senior citizens, the interest rate on the 444-day Amrit Vrishti scheme is a solid 7.75%. For standard investors, the rates on 1-year, 3-year, and 5-year FD plans are 7.30%, 7.25%, and 7.50%, respectively. If you invest Rs 1 lakh in SBI, your returns would be:

1-year FD: Rs 1,07,502
3-year FD: Rs 1,24,055
5-year FD: Rs 1,44,995

These returns reflect the stability and security of investing with a trusted bank like SBI.

Bank of Baroda (BoB)
Bank of Baroda offers slightly higher interest rates for senior citizens on their FD schemes. The 400-day Bob Utsav scheme, for instance, offers an interest rate of 7.80%. For general customers, the rates on the 1-year, 3-year, and 5-year FD plans are 7.35%, 7.65%, and 7.40%, respectively. If you choose Bank of Baroda for your FD investment, your returns on Rs 1 lakh would be as follows:

1-year FD: Rs 1,07,555
3-year FD: Rs 1,25,525
5-year FD: Rs 1,44,285

These returns demonstrate that BoB continues to be a strong contender for those seeking reliable fixed income investments.

Punjab National Bank (PNB)
PNB, another prominent public-sector bank, offers attractive FD rates as well. For senior citizens, the 400-day FD scheme offers 7.75% interest. The rates for regular customers on the 1-year, 3-year, and 5-year FD plans are 7.30%, 7.50%, and 7%, respectively. Here’s what a Rs 1 lakh investment would generate:

1-year FD: Rs 1,07,502
3-year FD: Rs 1,24,972
5-year FD: Rs 1,41,478

PNB’s rates make it a favourable option for those looking for a safe investment with moderate returns.

Canara Bank
Canara Bank offers competitive rates, especially for senior citizens. For the 3 to less than 5-year FD scheme, they offer 7.90%. For the general public, their rates stand at 7.35% for 1-year FD, 7.90% for 3-year FD, and 7.20% for 5-year FD. With Canara Bank, you can expect the following returns on your Rs 1 lakh investment:

1-year FD: Rs 1,07,555
3-year FD: Rs 1,26,452
5-year FD: Rs 1,42,875

These rates make Canara Bank an excellent choice for those who want a slightly higher return, especially for medium-term deposits.

ICICI Bank
ICICI Bank offers attractive interest rates for both senior citizens and regular investors. The 15-month to less than 18-month FD scheme provides a rate of 7.80% for senior citizens. For regular customers, the interest rates are 7.20% for 1-year FD, 7.50% for 3-year FD, and 7.50% for 5-year FD. Your returns on Rs 1 lakh would be:

1-year FD: Rs 1,07,397
3-year FD: Rs 1,24,972
5-year FD: Rs 1,44,995

ICICI Bank’s consistent offerings make it a reliable choice for fixed deposit investments.

HDFC Bank
HDFC Bank, one of India’s largest private-sector banks, offers some of the most attractive rates on fixed deposits, particularly for senior citizens. The 4-year 7-month (55-month) FD scheme offers a rate of 7.90%. For regular customers, the rates on the 1-year, 3-year, and 5-year FD plans are 7.10%, 7.50%, and 7.50%, respectively. The expected returns for Rs 1 lakh investment are:

1-year FD: Rs 1,07,291
3-year FD: Rs 1,24,972
5-year FD: Rs 1,44,995

HDFC Bank’s rates are slightly lower on the 1-year term, but the stability and reputation of the bank make it a safe bet.

Axis Bank
Axis Bank provides senior citizens with an interest rate of 7.75% for FD plans ranging from 15 months to less than 2 years and for 5-year to 10-year deposits. For regular customers, the interest rates stand at 7.20% for 1-year FD, 7.60% for 3-year FD, and 7.75% for 5-year FD. With Axis Bank, here’s what Rs 1 lakh will earn:

1-year FD: Rs 1,07,397
3-year FD: Rs 1,25,340
5-year FD: Rs 1,46,784

Axis Bank provides a competitive return on 5-year FD investments, making it a good option for long-term investors.

Fixed Deposit schemes offered by India’s leading banks remain a strong investment option, especially with attractive interest rates in 2025. Senior citizens, in particular, enjoy higher interest rates across many banks, ensuring better returns on their investments. While the returns may vary slightly between banks, fixed deposits continue to be a stable and risk-free way to grow your savings.

Disclaimer: This information is for general reference only. Please consult with the respective bank or a financial advisor before making any investment decisions.