Senior citizens (individuals aged 60 and above) who wish to park their savings in high interest fixed deposit (FD) worth less than Rs 3 crore for 10 years can earn up to 7.75% in various banks. There are still few banks who continue to offer such a high interest rate for such long tenure FDs. This interest rate is of high importance as the Reserve Bank of India (RBI) has cut the repo rate from 6.5% to 6.25% and it is anticipated that various banks will reduce their fixed deposit (FD) interest rates. So before this happens invest and lock up the high rates for 10 years.
Banks offering FD interest rates up to 7.75% for 10 year tenure
According to data from paisabazaar.com here are the FD rates:
FD interest up to 7.75% for senior citizens
There are three private banks who are offering 7.75% interest rate on FDs to senior citizens for 10 years tenure.
Axis Bank, DCB Bank and YES Bank are offering a 7.75% interest rate on its FDs maturing in 10 years.
FD interest rate up to 7.5% for senior citizens
There are three private sector banks who are offering 7.5%interest rate on FDs to senior citizens investing below Rs 3 crore for 10 years.
HDFC Bank, IndusInd Bank and RBL Bank are offering 7.5% interest rate on its FDs maturing in 10 years.
| Bank | FD interest rate for senior citizens (10 years) |
| Axis Bank | 7.75% |
| DCB Bank | 7.75% |
| YES Bank | 7.75% |
| HDFC Bank | 7.5% |
| IndusInd Bank | 7.5% |
| RBL Bank | 7.5% |
| ICICI Bank | 7.4% |
Source: paisabazaar.com as of March 12, 2025
FD interest rate up to 7.4% for senior citizens
As of March 12, 2025 ICICI Bank is the only bank to offer an interest rate of 7.4% on its FDs maturing in 10 years.
New TDS on FD rules from April 1, 2025 for senior citizens
From April 1, 2025, interest income from FDs will only be subject to TDS deduction if the amount, at the aggregate level in a bank, exceeds Rs 1 lakh in a financial year for the senior citizens. This means if a senior citizen keeps his/her interest income below Rs 1 lakh at a bank, then that bank will not deduct any TDS.
This means investors can effectively manage this TDS by calculating the right investment amount for a given interest rate, ensuring it remains within the annual interest threshold of TDS. If you carefully calculate how much money to invest in bank FDs so that the interest earned remains at or below Rs 1 lakh then you can prevent TDS from being deducted.. If it crosses Rs 1 lakh, then TDS will be deducted, unless Form 15H is submitted. Form 15H prevents TDS from being deducted, provided the annual income of the senior citizen submitting it does not exceed the basic exemption limit.
However, do note TDS is not any extra tax. You can get it back with additional interest once you file the income tax return (ITR), if your net tax liability is less than the amount of TDS deducted.
