Bandhan Bank Elevates Senior Citizen FD Returns
Bandhan Bank has announced a significant revision in its fixed deposit (FD) interest rates, with senior citizens now eligible to earn up to 7.95% per annum on specific tenures. This adjustment, effective June 20, 2026, positions the private lender competitively in the market, aiming to attract more retail deposits.
For general customers, the bank offers a maximum rate of 7.45% on the same selected tenures. The move comes as several banks continue to adjust their deposit rates, even as the Reserve Bank of India (RBI) has maintained the benchmark repo rate at 5.25% in its recent monetary policy review.
Detailed Interest Rate Structure
Under the updated structure, senior citizens will receive the highest interest rate of 7.95% for fixed deposits held for a tenure of two years to less than three years. General customers depositing for the identical period will earn 7.45%.
For deposits with a tenure ranging from three years to less than five years, senior citizens can secure 7.75%, while other customers will get 7.25%. Shorter-term deposits, such as those for one year, offer 7.50% to senior citizens and 7.00% to general customers.
In addition to domestic FDs, Bandhan Bank also revised interest rates on its Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits for non-resident Indian (NRI) customers last week. USD-denominated FCNR(B) deposits of USD 1 million and above for three to five years now fetch 7.1% interest.
Competing for Deposits: Other Banks' Offerings
Bandhan Bank is not alone in its pursuit of retail deposits. Other financial institutions have also recently tweaked their FD offerings:
- Yes Bank: Revised rates on June 2, offering up to 7.25% for general customers and 7.75% for senior citizens on deposits between 18 months and one day to less than 24 months.
- DCB Bank: Updated rates on June 1, providing up to 7.5% for general customers. Senior citizens can earn 8%, with those aged 70 and above potentially receiving up to 8.05% under its "Senior Citizens Plus" category for select tenures.
- Union Bank of India: Offers a highest rate of 6.65% on 555-day fixed deposits.
- Punjab National Bank (PNB): Provides a maximum of 6.6% for general customers on 444-day deposits, with senior citizens earning 7.1% and super senior citizens 7.4%.
What This Means for Savers
The ongoing revisions underscore the intense competition among banks to mobilize funds, creating opportunities for depositors to secure better returns. While lending rates have largely stabilized, deposit rates remain dynamic as lenders strive to strengthen their funding base.
Currently, general customers can find annual returns of up to 7.5% on bank fixed deposits, and senior citizens can earn as much as 8.05%, depending on the bank and the chosen tenure. Financial experts advise investors to carefully compare both interest rates and specific maturity periods before committing to an FD, as the most attractive returns are often tied to particular tenures.