Highest RD Interest Rates for Senior Citizens 2026 – All Banks
Senior Citizens can avail special benefits on recurring deposit schemes, such as an additional interest rate of 0.25% to 0.75% over and above the regular interest rate offered by most banks.
Once the amount of installment and tenure is fixed, it cannot be changed once the account is opened. Interest on the recurring deposit scheme is compounded on a quarterly basis.
Several Banks offer Recurring Deposit for Senior Citizens for a tenure ranging from a minimum period of 6 months up to a maximum period of 10 Years. The tenure can be chosen by the depositor, in multiples of 3 months.
The interest rate applicable on the recurring deposit is similar to that applicable on the Fixed Deposit, for a similar tenure.
Features of Recurring Deposit
The key features of Recurring Deposit are as follows:
- You can get fixed monthly deposits throughout the chosen tenure.
- Senior citizens are often eligible for higher interest rates than regular depositors.
- Customers can avail loans against the RD deposit by using it as collateral.
- It offers affordable monthly deposits, which start from as low as Rs.100 per month (depending on the bank’s policy).
- Maturity amount includes the total deposits along with the accumulated interest.
- Premature withdrawal attracts penalty charges as per the bank’s terms and conditions.
Senior Citizen Recurring Deposit Interest Rate
A Recurring Deposit (RD) account helps retirees and individuals who are 60 years or above to grow their savings through regular monthly deposits while earning attractive returns.
Many banks and financial institutions offer higher RD interest rates to senior citizens compared to standard rates, which makes it a reliable investment option. Knowing the latest senior citizen RD interest rates in 2026, you can choose the best scheme to maximize your savings and achieve your financial goals:
Senior Citizen RD Interest Rates: Up to 3-Year Tenors
The table below shows the latest senior citizen RD interest rates offered by banks for 1 year tenure and 3-year tenure.
Bank Name | For 1 year | For 3 years |
AU SFB | 6.85% | 7.60% |
Axis Bank | 6.75% | 6.95% |
Bank of Baroda | 6.60% | 6.60% |
Bandhan Bank | 7.50% | 6.75% |
Bank of India | 6.25% | 6.00% |
Canara Bank | 6.75% | 6.75% |
City Union Bank | 7.10% | 6.75% |
Central Bank of India | 6.70% | 6.50% |
Equitas SFB | 7.50% | 7.50% |
HDFC Bank | 6.75% | 6.95% |
ICICI Bank | 6.75% | 6.95% |
IDFC FIRST Bank | 6.80% | 7.50% |
IDBI Bank | 6.70% | 6.85% |
Indian Overseas Bank | 7.00% | 6.10% |
Jana SFB | 7.50% | 8.00% |
Punjab and Sindh Bank | 6.35% | 6.35% |
Punjab National Bank | 6.60% | 6.60% |
Shivalik SFB | 6.50% | 7.35% |
State Bank of India | 6.75% | 6.80% |
Slice SFB | 7.25% | 7.25% |
Suryoday SFB | 7.45% | 7.45% |
Ujjivan SFB | 7.75% | 7.70% |
Unity SFB | 7.50% | 8.50% |
Union Bank of India | 6.75% | 6.50% |
Utkarsh SFB | 6.50% | 7.50% |
Yes Bank | 7.15% | 7.75% |
Senior Citizen RD Interest Rates :5-Years and Above
The following table lists the senior citizen RD interest rates for deposit tenures of 5 years and 10 years:
Bank Name | For 5 years | For 10 years |
AU SFB | 7.25% | 7.25% |
Axis Bank | 7.20% | 7.20% |
Bank of Baroda | 6.90% | 7.00% |
Bandhan Bank | 5.40% | 5.40% |
Bank of India | 6.50% | 6.50% |
Canara Bank | 6.75% | 6.75% |
City Union Bank | 6.75% | 6.50% |
Central Bank of India | 6.50% | 6.50% |
Equitas SFB | 7.50% | 7.50% |
HDFC Bank | 6.90% | 6.65% |
ICICI Bank | 7.10% | 7.00% |
IDBI Bank | 6.75% | 6.40% |
Indian Overseas Bank | 6.60% | 6.60% |
Jana SFB | 7.77% | 7.00% |
Punjab and Sindh Bank | 6.45% | 6.35% |
Punjab National Bank | 6.60% | 6.80% |
Shivalik SFB | 6.75% | 6.75% |
State Bank of India | 7.05% | 7.05% |
Slice SFB | 6.75% | 6.75% |
Suryoday SFB | 8.00% | 7.45% |
Ujjivan SFB | 7.70% | 7.00% |
Unity SFB | 7.50% | 7.50% |
Union Bank of India | 6.40% | 6.40% |
Utkarsh SFB | 7.25% | 7.25% |
Yes Bank | 7.50% | 7.50% |
How to Open Recurring Deposit for Senior Citizens?
Senior citizens can open their RD account either online or offline:
- Online Mode: To open the account online, visit the bank’s official website or mobile banking app. Account holders need to log in, select the RD scheme, provide the required details, choose the deposit amount, and tenure to complete the process digitally.
- Offline Mode: Account holders can also visit the nearest bank branch to open an RD account. They need to fill out the application form, submit the required documents, and make the initial deposit to start the RD account.
RD Article Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes
- City Union Bank Recurring Deposit
- Indian Bank Recurring Deposit
- Union Bank Recurring Deposit
- UCO Bank Recurring Deposit
FAQs on Recurring Deposit for Senior Citizens
- What is the TDS for senior citizens who have invested in Recurring Deposits?
Senior citizens will be charged 10% TDS on the interest earned from their Recurring Deposits if the total interest exceeds Rs.1,00,000 per year (threshold revised upward effective 1 April 2025, as of June 2026).
- What is the minimum amount a senior citizen can invest in a Recurring Deposit?
The minimum amount a senior citizen can invest in a Recurring Deposit varies from Bank to Bank.
- Are interest rates on RD accounts higher for senior citizens?
Yes. Senior citizens receive higher interest rates from the bank.
- Can a senior citizen change the instalment amount once they open an RD account?
No, a senior citizen cannot change the instalment amount once they open an RD account.
- Will senior citizens be penalized if they withdraw money from their RD prematurely?
Yes, senior citizens will be penalized if they withdraw money from their RD prematurely.
- Is it possible for a senior citizen to change the tenure after the RD account has been opened?
No, the tenure for an RD is fixed. So, it is not possible to change the tenure once the RD account has been opened.
Annie Jangam is a financial writer with a unique background in biotechnology and eight years of genomics research experience, culminating in 6 international publications. She combines her analytical and communication skills to simplify complex financial concepts, delivering precise and creatively engaging content in the fintech industry. She covers various financial products such as banking, insurance, credit cards, tax, commodities, and more. Outside of the financial realm, she dabbles in poetry. Her extracurricular passions include organizing events like One Billion Rising and Human Rights Day. She is committed to the equality of all people, a principle rooted in her Christian faith. Annie strives to embody the values of faith, hope, and love in both her work and her life.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2026 BankBazaar.com.