These 7 top banks offer interest up to 7.2% on fixed deposits for senior citizens

Prior to locking your savings in a fixed deposit (FD), it is recommended to compare the interest rates offered by different banks. Most banks offer interest rates on term deposits which are similar to each other. They all pay an interest which is higher by 50 basis points for senior citizens.

As a result, some people even lock their FDs in their parents' names to earn an extra 50 basis points.

Let us find out which all lenders offer high interest on fixed deposits (FDs) to senior citizens.

FD interest rates offered by top banks:

HDFC Bank: This private bank offers highest interest of 7.1% to senior citizens when the tenor is 18-21 months. Interest rates on other tenors range between 6.75% to 6.9% for tenors between 1-5 years, respectively.

ICICI Bank: This bank offers interest rate of 7.2% on tenor of 2 to 5 years. The bank offer interest starting from 6.75% on 1-year tenor to senior citizens.

Kotak Mahindra Bank: This bank offers 7.2% interest on a FD of tenor between 391 days to less than 2 years. On a 1-year deposit, this private bank offers interest of 6.75% to senior citizens.

(Source: Bank websites)

Federal Bank: This private bank offers highest interest rate of 7.2% on an FD of 36-month tenor to senior citizens. On 1-year tenor, bank offers 6.75% interest to senior citizens.

State Bank of India (SBI): The largest bank of India offers 7.05% interest on tenor between 5 to 10 years (including 50 bps premium under SBI We Care)

Canara Bank: This state lender offers 7% interest on an FD of 444-day tenor to senior citizens. On 1-year tenor, the bank offers 6.75% interest. On 1-year deposit, the bank offers 6.75% interest to senior citizens.

Union Bank of India: This state lender offers 7.1% interest on a fixed deposit (FD) of 3-year tenor to senior citizens. When the tenor is one year, the bank offers 6.9% interest to the grey-haired depositors .

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