SBI has made broad changes to bulk deposit rates for senior citizens, cutting rates by up to 25 basis points on select shorter tenures from August 15, 2026. The bank has reduced rates for seven days to 179 days by 25 bps, while the rate for 180 days to 210 days has been cut by 10 bps. For senior citizens, the rate for seven days to 14 days is now 4.75%, down from 5%, and for 15 days to 45 days, senior citizens will earn 5.25%, compared with 5.50% earlier. SBI has not changed interest rates on fixed deposits below ₹3 crore, with rates for general citizens ranging from 3.05% to 6.40% and senior citizens earning between 3.55% and 7.05% depending on tenure. HDFC Bank has raised its senior citizen FD rate to 7.10%, while Federal Bank now offers up to 7.20% on select tenures for deposits below ₹3 crore.
SBI has implemented specific rate cuts across shorter bulk deposit tenures while maintaining rates for longer tenures. The rate for seven days to 14 days has been reduced from 4.50% to 4.25%, and for 15 days to 45 days, the rate is now 4.75%, compared with 5% earlier. The rate for deposits of 46 days to 179 days has been cut from 5.10% to 4.85%, and for deposits of 180 days to 210 days, the rate has been reduced from 5.60% to 5.50%. For longer tenures, SBI has retained its rates: deposits of 211 days to less than one year continue to earn 5.60%, while the rate for one year to less than two years remains at 6.25%. For deposits of two years to less than three years, the interest rate is unchanged at 6.15%, and deposits of three years to less than five years and five years up to 10 years continue to earn 6%. The revised rates apply to fresh deposits and renewals of maturing deposits, affecting SBI customers placing ₹3 crore or more in bulk deposits, while retail FD rates remain unchanged.
HDFC Bank has increased its FD interest rate for senior citizens by 10 basis points on deposits below ₹3 crore for one particular maturity period. As reported by Business Standard, the rate for deposits with a tenure of 3 years 1 day to less than 4 years 7 months has increased from 7% to 7.10% per annum. After the revision, HDFC Bank's senior citizen FD rates range from 3.25% to 7.10%, with the highest rate available for the 3-year-1-day to less-than-4-year-7-month tenure. Senior citizens receive an additional 60 basis points over regular customers on this tenure offering the bank's highest rate. Customers under 60 years of age will receive the same interest rates on their FD accounts, ranging from 2.75% to 6.50%, while senior citizens will receive the same rates on all FD accounts with maturity periods except for the specific 3-year-1-day to less-than-4-year-7-month tenure.
Federal Bank has revised its FD rates for deposits below ₹3 crore, with regular customers earning between 3% and 6.70% and senior citizens earning between 3.50% and 7.20%. According to Business Standard, the bank's highest rate of 7.20% is available on a 48-month FD for senior citizens. For senior citizens, key rates include 7-29 days at 3.50%, 30-45 days at 3.75%, 46-90 days at 4.75%, and 48 months at 7.20%. The bank's regular customer rates range from 3% to 6.70% per annum. Private banks offer returns ranging from 3.50% to 7.20% on FD accounts for senior citizens, with Federal Bank leading the premium offerings.
A higher interest rate does not automatically mean an existing FD should be closed and reinvested, as reported by Business Standard. Senior citizens should compare the interest rate currently being earned, remaining tenure of existing FDs, new FD rates, premature withdrawal penalties, and tax implications before switching. SBI has set a 1% premature withdrawal penalty across all tenures for bulk deposits, applying to all new deposits including renewals. For retirees dependent on interest income, spreading money across different maturities can be useful through an FD ladder, according to Business Standard. This approach allows deposits to mature at different points, providing investors with periodic access to funds instead of locking the entire corpus into one long-term deposit. The latest rate changes highlight why investors should not compare banks only on their maximum FD rate, as the highest rate is often available only on specific tenures, and the right FD will depend on when investors expect to need the money.
