The interest rate on fixed deposits is always a crucial decision for investors. Choosing the right bank is crucial, especially for senior citizens who expect good returns from their investments. In 2025, many major banks are offering good interest rates of over 7% for senior citizens, making investing even more profitable. Let's find out which banks can earn the highest interest on fixed deposits.

FD Interest Rates at Private Banks
First, let's talk about private banks. HDFC Bank offers senior citizens up to 7.1% interest on FDs with tenures of 18 to 21 months, while general customers get 6.6%. These new rates are effective from June 25, 2025. Similarly, ICICI Bank is offering senior citizens 7.1% interest on fixed deposits with tenures of 2 to 10 years, compared to 6.6% for general customers.

Kotak Mahindra Bank also offers 7.1% interest to senior citizens and 6.6% to other customers on FDs with a tenure of 23 months. These rates came into effect from August 20. Federal Bank has also offered 7.2% interest to senior citizens on 999-day FDs, which is slightly better than other private banks.

FD Rates of Public Sector Banks
Speaking of public sector banks, State Bank of India (SBI), India's largest bank, has announced 6.95% interest to senior citizens and 6.45% interest to the general public on FDs of 2 to 3 years. These rates are effective from July 15, 2025. Union Bank of India offers 6.6% interest to senior citizens on FDs of 3 years, while general customers get a slightly lower rate of 6.1%. Punjab National Bank (PNB) offers 7.10% interest on 390-day FDs, which is a good rate for senior citizens. Canara Bank offers 7% interest to senior citizens and 6.5% interest to general customers on 444-day FDs. These new rates are effective from August 7, 2025.

Why are FD interest rates important?
Interest rates determine how quickly your money will grow. FDs are a reliable option, especially for older people who want safe and good returns on their savings. Therefore, choosing the right bank and investing in fixed deposits at a higher interest rate is essential.

Why do senior citizens earn higher interest?
As per government regulations, senior citizens (60 years and above) are eligible for additional interest on fixed deposits. This ensures their savings remain safe and grow, contributing to their monthly income.

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