Fixed deposits (FDs) remain a popular choice for investors seeking stable and predictable returns without exposure to market volatility. For those considering a specific investment horizon, several banks are offering competitive interest rates on 555-day fixed deposits, with City Union Bank currently leading the pack.
Top 555-Day FD Rates Compared
As of September 16, 2026, City Union Bank provides the highest interest rate for its 555-day fixed deposits, offering 7.25% for general citizens. Senior citizens depositing with City Union Bank can secure an even higher rate of 7.50% for the same tenure.
Following closely, Karnataka Bank offers 7.00% to general citizens and 7.40% to senior citizens on its 555-day FD. Bank of Baroda provides rates of 6.75% for general depositors and 7.25% for seniors.
Other prominent banks also offer attractive rates:
- Indian Bank: 6.65% for general citizens, 7.15% for senior citizens.
- Canara Bank: 6.60% for general citizens, 7.10% for senior citizens.
- Union Bank of India: 6.55% for general citizens, 7.05% for senior citizens.
Higher Returns for Senior Citizens
Across all six banks analyzed, senior citizens consistently receive a higher interest rate compared to general depositors for the 555-day tenure. This additional benefit typically ranges from 0.25 to 0.50 percentage points, depending on the specific bank. City Union Bank's 7.50% rate stands out as the highest for senior investors in this comparison, followed by Karnataka Bank at 7.40%.
Understanding Tax Implications (TDS)
Interest earned on fixed deposits is subject to tax deducted at source (TDS) once it crosses specific thresholds. For non-senior citizens under 60 years of age, TDS applies if the total interest income in a financial year exceeds ₹50,000. For senior citizens aged 60 and above, this threshold is set higher at ₹1,00,000 per financial year. These limits apply to the aggregate interest earned across all accounts covered under relevant TDS provisions.
Investors are advised to compare the latest interest rates directly with the respective banks, considering both the tenure and their specific customer category, before making any investment decisions. Interest rates are subject to change.