Savings account interest rates for senior citizens in May 2026: SBI, HDFC, Post Office, PNB, others compared

Banks in India adjust savings account interest rate based on the broader interest rate scenario, competition as well as liquidity needs. According to the Reserve Bank of India (RBI) mandate, banks are required to compute interest on a daily closing basis, nonetheless the final discretion in respect of interest rates lies with the bank.

As these rates are dynamic, this article compares the savings account interest rates on offer currently (as of May 2026) for senior citizens across institutions, including the Post Office.

Post Office Savings Account: This government-backed savings account (SB) fetches 4% rate of interest per annum. Interest in this account is calculated based on the minimum balance between 10th of the month and end of the month. Further, no interest will be credited for a month if the account balance falls below ₹500 at any time between 10th and last day of the month.

State Bank of India (SBI): SBI across all bank balances offer 2.5% per annum interest rate to senior citizens.

Punjab National Bank (PNB): PNB offers a tiered interest rate with rate ranging between 2.5-4.25%, rewarding higher balance with a higher rate.

HDFC Bank: The savings bank account at HDFC Bank offers a uniform rate of 2.5% per annum across all account balances.

ICICI Bank: ICICI Bank also offers a 2.5% interest rate on the savings account, irrespective of the balance amount.

Axis Bank: For balance less than ₹2,000 crore, savings account with Axis Bank offers 2.5% interest rate.

Kotak Mahindra Bank: The bank offers a 2.5% interest rate on savings accounts.

Source: Website of respective banks and post office

Among the different financial entities considered for savings accounts, PNB is offering a tiered interest rate structure with the highest rate on offer at 4.25%. The post office savings account is another safe option with the interest rate fixed at 4% per annum.

What factors should senior citizens consider when opening a savings account?

Other than higher interest pay-outs, senior citizens should consider banks offering:

1. Doorstep banking facility
2. Banks with a strong network of branches, for example: SBI, ICICI and HDFC Bank among others.
3. Additional privileges such as discounts on health check-ups, locker discounts, free accounts for family members, together with free demat account facility etc.