Banks offering highest interest rate to senior citizens for FDs

Senior citizens prefer fixed deposits (FDs) for the security they offer, their guaranteed returns and low risk. Banks often offer higher interest rates for this demographic, which prefers risk-free investment.

To maximise FD returns, select a bank with competitive interest rates. Here's a list of top private and public sector banks offering the best FD rates on deposits of up to Rs 1 crore. The list is based on BankBazaar data as of September 1.

IndusInd Bank offers senior citizens a 7.5 percent interest rate on two-year FDs, the highest among private banks.

Axis Bank provides a 7.35 percent interest rate on 5-10 year FDs for senior citizens.

HDFC Bank offers a 7.10 percent interest rate on FDs with a tenure of 18-21 months.

ICICI Bank offers senior citizens a 7.10 percent interest rate on FDs with a tenure of two years one day to 10 years.

Kotak Mahindra Bank offers senior citizens a 7.1 percent rate on FDs with a tenure of 391 days to less than 23 months.

Bank of Baroda offers senior citizens a 7.10 percent interest rate on FDs with a 444-day tenure.

Punjab National Bank offers senior citizens a 7.10 percent interest rate on FDs for a tenure of 390 days.

Union Bank of India offers senior citizens a 7.10 percent interest rate on FDs for a tenure of 456 days.

State Bank of India offers an interest rate of 7.05 percent for 5-10 years FD by senior citizens.

Canara Bank provides senior citizens with an interest rate of 7 percent on FDs for a tenure of 444 days.

The Deposit Insurance and Credit Guarantee Corporation, a RBI subsidiary, guarantees investments in fixed deposits of up to Rs 5 lakh.