Bank of India offers up to 7.45% senior FD rate

Bank of India’s top 7.45% senior-citizen rate applies to a three-year tenure, while its one-year rate is 7%. That makes tenure selection just as important as chasing the highest advertised yield.

Among other state-run lenders, Punjab and Sind Bank offers up to 7.35%, Bank of Baroda and Central Bank of India up to 7.25%, Bank of Maharashtra and Indian Bank up to 7.15%, and Canara Bank, Indian Overseas Bank and Punjab National Bank up to 7.10%. SBI and Union Bank of India are at up to 7.05%, while UCO Bank’s peak is 6.95%.

The spread is more pronounced on shorter maturities. On a one-year FD, Bank of India and Indian Overseas Bank are at 7%, Bank of Maharashtra is at 6.90%, and SBI, BoB, Canara Bank and PNB are at 6.75%. Punjab and Sind Bank and UCO Bank are lower at 6.35%.

For investors, that makes the story less about a single best rate and more about bank selection, tenor, payout structure and tax treatment. SBI’s senior-citizen deposits also include an extra premium under its We-care scheme on five- to 10-year tenures, underscoring how banks are competing for sticky household savings.

The backdrop is a still-competitive deposit market in which public-sector lenders are using senior-citizen FDs to retain retail money even as rates move around over time. The immediate focus for savers now is whether they want liquidity at one year or maximum yield at three years, with the final return depending on compounding, premature withdrawal rules and applicable tax.