FD rates for senior citizens revised: SBI, HDFC, ICICI, PNB, BoB – Which bank is giving highest return?

In the last few years, bank interest rates on loans and deposits in the country remained quite high as the RBI deliberately kept rate regime tight in view of higher inflation. This, however, helped fixed deposit holders especially senior citizens to earn good interest on their money. But now in 2025 the picture is changing.

There are a large number of senior citizens in India who prefer to invest their retirement money in safe options like fixed deposits. Facilities like guaranteed returns, capital protection and interest without risk in FD attract them. Therefore, whenever there is a change in FD rates, it affects this class the most.

Although senior citizens usually get 0.25% to 0.75% more interest than general customers, the impact of rate cuts does not escape them either.

In the last 5 months, the RBI has cut the repo rate by 100 basis points (bps), bringing it down to 5.50% now. The repo rate is the rate at which banks take loans from the RBI. When this rate decreases, banks also start reducing interest rates on both loans and deposits.

Almost all major banks have cut their FD interest rates, including State Bank of India (SBI), HDFC, ICICI Bank, PNB and Bank of Baroda. Some banks have cut their FD rates twice this month.

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Which bank’s FD is giving the highest interest now?

If you are thinking of making an FD in June 2025, then it is important to know which banks have the most beneficial rates. Some banks are still offering attractive rates – especially on FDs with a tenure of 1 year to 3 years. We have compared the FD interest rates of the country’s five big banks SBI, HDFC, ICICI Bank, PNB and Bank of Baroda, which are applicable for both general customers and senior citizens.

What should senior citizens do for investment?

According to experts, if you do not need money in the near future, then you can get an FD for a long period (2 to 3 years), so that the current rates get locked. Also, before getting an FD, definitely compare the rates of different banks.

Some banks also run special senior citizen FD schemes, which offer higher interest than normal – like SBI’s “WeCare Scheme” or ICICI’s “Golden Years FD”.

Also read: 3 step retirement blueprint for a Rs 1 lakh monthly income

Summing up…

After the cut in repo rate, the trend of falling FD interest rates continues. Senior citizens will now have to choose banks and schemes wisely so that they can get safe returns as well as better interest rates. If you are planning for retirement or want stability in investments, then this is the time to choose FD wisely.