Senior citizens looking for fixed-income returns are still getting the best headline rate from Bank of India, which offers up to 7.45% on select fixed deposits and can deliver about ₹7,450 in annual interest on a ₹1 lakh deposit before tax and compounding.
Bank of India offers up to 7.45% senior FD rate

The comparison matters because deposit rates remain a key source of income for retirees in India, and the gap across public-sector banks is wide enough to materially change maturity values. For older savers, a 20- to 80-basis-point difference in rates can meaningfully alter cash flow, especially when the deposit is intended to fund monthly expenses.
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.
| Entity | Gains | Losses |
|---|---|---|
| Bank of India | ▲Highest headline FD rate | ▼Lower-rate peers |
| Senior citizens | ▲Better fixed-income returns | ▼Tax-sensitive savers |
| SBI | ▲Brand trust, long-tenor deposits | ▼Rate-seeking customers |
| BoB / Canara / PNB | ▲Competitive mid-tier yields | ▼Top-yield competition |

