How Senior Citizen FD interest rates changed in 2025: 1-year vs 5-year rates compared across top banks

However, FD rates are still attractive in Small Finance Banks ( SFBs) as they continue to offer very competitive rates for senior citizens despite the rate cuts: for example, Suryoday Small Finance Bank is offering up to 9.1% on 5‑year FDs.

On the fixed deposit front, major lenders initiated several rate revisions throughout the second half of 2025.

State Bank of India (SBI) cut its FD rates across specific short- to medium-term tenures, specifically for deposits of 46 days to 179 days, 180 days to 210 days, and 211 days to less than one year. These reductions were implemented with effect from July 15, 2025.

Punjab National Bank (PNB) revised its interest rates for deposits across two particular long-term tenures: 1204 days and 1895 days. These revised rates applied to the general public, senior citizens, and super senior citizens, becoming effective from September 1, 2025.

Separately, HDFC Bank also made revisions to its Fixed Deposit rates, which became effective earlier on June 25, 2025.

Senior Citizen FD Rates: One-Year interest rates offered by major banks

Other large banks, including Axis Bank (6.90%) and PNB (6.90%), offer slightly lower rates, while Bank of Baroda, SBI, HDFC Bank, and ICICI Bank all offer 6.75% for a 1-year senior citizen FD.

Senior Citizen FD Rates: Three-Year interest rates offered by major banks

Central Bank of India offers a steady 7.00%, as does Bank of Baroda. HDFC Bank offers 6.95%, and PNB offers 6.90%. Interestingly, SBI offers a slightly lower rate of 6.80%, while Bandhan Bank's rate dips to 7.50% (still one of the highest overall) for this tenure.

Senior Citizen FD Rates: Five-Year interest rates offered by major banks

Shifting to five-year Fixed Deposits, the interest rate landscape changes again, with some banks rewarding long-term commitment while others reduce rates.

Axis Bank offers the highest return at 7.35%. ICICI Bank and PNB both offer an attractive 7.10%, and SBI provides 7.05%. Central Bank of India and Bank of Baroda maintain a 7.00% offering.

However, several banks show a significant drop in their 5-year rates compared to the 3-year term, including HDFC Bank (6.65%), Bandhan Bank (6.60%), and Kotak Bank (6.70%).