FD Rates for Senior Citizens: During the week ending March 7, 2026, many banks in India changed their fixed deposit interest rates. In total eight banks updated their FD rates. These banks include Bank of India, Indian Bank, Bandhan Bank, Yes Bank, HDFC Bank, IDFC First Bank, Equitas Small Finance Bank and ESAF Small Finance Bank.
These changes affect people who keep money in fixed deposits to earn interest. Fixed deposits are a popular way for many Indians to save money safely while earning steady returns from banks.
Among the banks that made changes, Bank of India also announced special benefits for senior citizens and super senior citizens.
Bank of India gives Extra Interest to Senior Citizens
Bank of India, which is a public sector bank, revised its fixed deposit rates on March 2, 2026. The bank is offering additional interest to older customers.
For deposits with a tenure of less than three years, senior citizens who are 60 years or older will receive an extra 50 basis points. Super senior citizens who are 80 years and above will receive an additional 75 basis points.
For deposits with a tenure of three years or more the benefits are slightly higher. Senior citizens will receive an additional 75 basis points. Super senior citizens will receive 90 basis points extra on their fixed deposits.
These benefits are meant to help older customers earn better returns on their savings.
Bank Of India
• 6.75 per cent for one year
• 6.80 per cent for above one year to less than two years (except 450 Days)
• 7.10 per cent for 450 days (Star Swarnim)
• 6.80 per cent for two years to less than three years
• 6.75 per cent for three years to less than five years
• 6.50 per cent for five years to less than eight years
• 6.50 per cent for eight years and above to 10 years
Indian Bank
• 6.60 per cent for one year
• 6.70 per cent for above one year to less than two years (except 444 and 555 days)
• 7.10 per cent for 444 days (7.35 per cent to super seniors)
• 6.90 per cent for 555 days
• 6.65 per cent for two years to less than three years
• 6.55 per cent for three years to less than five years
• 6.50 per cent for five years
• 6.50 per cent for the above five years
Notably, the 444-day FD is valid till April 4, 2026.
Bandhan Bank
Bandhan Bank’s revised FD rates are effective March 6, 2026. It offers seniors the highest 7.75 per cent interest. Here are the interest rate details for seniors:
• 7.50 per cent for one year
• 7.50 per cent for one year one day to one year nine months
• 7.50 per cent for one year nine months one day to less than two years
• 7.75 per cent for two years to less than three years
• 7.50 per cent for three years to less than five years
• 6.60 per cent for five years to 10 years
Yes Bank
Yes Bank’s new FD rates are effective March 5, 2026. The revised interest rates for senior citizens are:
• 7.15 per cent for 12 months
• 7.25 per cent for 12 months and one day to less than 18 months
• 7.25 per cent for 18 months
• 7.50 per cent for 18 months and one day to less than 24 months
• 7.50 per cent for 24 months to less than 35 months
• 7.40 per cent for 35 months
• 7.50 per cent for 36 months one day to less than 36 months
• 7.75 per cent for 36 months to less than 60 months
• 7.50 per cent for 60 months
• 7.50 per cent for 60 months and one day to 120 months
HDFC Bank
HDFC Bank revised and increased its FD rates on March 6, 2026, and offers the highest 7.00 per cent to senior citizens. Interest rates for seniors are:
• 6.75 per cent for one year to less than 15 months
• 6.85 per cent for 15 months to less than 18 months
• 6.95 per cent for 18 months to less than 21 months
• 6.95 per cent for tenures between 21 months and two years
• 6.95 per cent for tenures between two years one day and three years
• 7.00 per cent for three years one day to four years seven months
• 6.90 per cent for tenure between four years seven months and five years
• 6.65 per cent for five years one day to 10 years
IDFC First Bank
Seniors can receive up to 7.70 per cent with IDFC First Bank. The rates have been revised on March 4, 2026. Here are the details for seniors:
• 6.80 per cent for one year
• 6.80 per cent for one year one day to 370 days
• 7.50 per cent for 371 days to 449 days
• 7.70 per cent for 450 days to two years
• 7.70 per cent for two years one day to five years
• 6.50 per cent for five years one day to 10 years
Equitas Small Finance Bank
Equitas SFB revised FD rates on March 2, 2026, offering senior citizens a maximum of 8.00 per cent. Seniors can avail of
• 7.40 per cent for tenures between one year and two years
• 7.50 per cent for two years one day 776 days
• 7.50 per cent for 777 days
• 7.50 per cent for 778 days to 887 days
• 8.00 per cent for 888 days
• 7.50 per cent for 889 days to three years
• 7.50 per cent for three years one day to four years
• 7.50 per cent for four years one day to five years
• 7.50 per cent for five years one day to 10 years
ESAF Small Finance Bank
ESAF SFB revised its FD rates on March 1, 2025. The ESF bank’s FD rates for seniors are:
• 5.25 per cent for 183 days to one year
• 7.75 per cent for one year one day to 443 days
• 8.10 per cent for 444 days
• 7.75 per cent for 445 days to 500 days
• 8.50 per cent for 501 days
• 7.75 per cent for 502 days to less than two years
• 7.75 per cent for two years to less than three years
• 6.50 per cent for three years to less than five years
• 6.25 per cent for five years to 10 years.
All these rates are for FDs of up to Rs 3 crore.
Tax Rules and Form 15H for Senior Citizens
Under the new tax rules for FY 2025-26, some people may not have to pay income tax even if their income looks high. For example, a senior citizen earning Rs 11 lakh may still pay zero tax because of the Section 87A rebate.
Under the new tax regime, this rebate applies to income up to Rs 12 lakh. So people earning within this limit may not need to pay tax.
However banks may still deduct TDS if the interest from fixed deposits goes above the limit. This happens because banks do not know a person’s total income or final tax liability.
Senior citizens can avoid this deduction by submitting Form 15H if their total income after deductions and rebates is below the taxable limit.
Chartered Accountant Dr. Suresh Surana explained this rule. He said: “It applies based on the final tax liability after considering exemptions and rebates. Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no tax, making them eligible to submit Form 15H.”
If a person’s income crosses the allowed limit banks will deduct TDS. Any extra tax deducted can later be claimed as a refund while filing the income tax return.
