Banks provide both regular clients and senior individuals with favorable interest rates. On FDs with terms between one and three years, many banks are offering interest rates of up to 8.50% annually. Here are 5 such banks that offer their clients deposits with terms of one, two, or three years an annual interest rate of up to 8.5%. Senior citizens typically receive up to 0.50 percent higher interest than regular clients.
Axis Bank
| tenure | Rate of interest | Interest Rate (Senior Citizen) |
| 1 year | 6.75% | 7.50% |
| 2 years | 7.26% | 8.01% |
| 3 year | 7.00% | 7.75% |
Bandhan Bank
| tenure | Rate of interest | Interest Rate (Senior Citizen) |
| 1 year | 7.25% | 7.75% |
| 600 days | 8.00% | 8.50% |
| 2 years | 7.25% | 7.75% |
| 3 year | 7.25% | 7.75% |
RBL Bank
| tenure | Rate of interest | (Senior Citizen) |
| 1 year | 7.00% | 7.50% |
| 725 days | 7.80% | 8.30% |
| 2 years | 7.00% | 7.50% |
| 3 year | 7.00% | 7.50% |
IDFC First Bank
| tenure | Rate of interest | Interest Rate (Senior Citizen) |
| 1 year | 6.75% | 7.25% |
| 2 years | 7.25% | 7.75% |
| 3 year | 7.75% | 8.25% |
DCB Bank
| tenure | Rate of interest | Interest Rate (Senior Citizen) |
| 1 year | 7.25% | 7.75% |
| 2 years | 8.00% | 8.50% |
| 3 year | 7.60% | 8.10% |
(Note: These interest rates were obtained from the banks’ official websites. Deposits under Rs. 2 crore are subject to the charges.)
All interest earned on term fixed deposits is subject to full taxation. This means that once this revenue has been added to the investor’s overall income, it must be taxed using the appropriate tax bracket. People who are 60 years of age or older are considered senior citizens under the Income Tax Act. Senior citizens are eligible for a deduction of up to Rs 50,000 on interest income per fiscal year.
