Federal Bank FD Interest Rates have been increased for senior citizens, allowing them to earn up to 7.40% annual interest on selected fixed deposit tenures.
The revised rates came into effect on November 12, 2026, giving older depositors an opportunity to earn higher returns on their savings.
The private sector lender has increased the additional interest benefit offered to senior citizens from 0.50% to 0.60% on eligible fixed deposits.
This means senior citizens will receive an additional 0.10 percentage point benefit compared with the earlier additional interest offered by the bank.
The 18-month fixed deposit is among the attractive options under the revised structure. Senior citizens can also earn 7.40% on deposits with a tenure of two years to less than three years.
Federal Bank FD Interest Rates for Senior Citizens
Under the revised interest rate structure, senior citizens can earn different returns depending on the duration of their deposits.
The latest rates for senior citizens are:
7 to 29 days: 3.60%
30 to 45 days: 3.85%
46 to 90 days: 5.60%
91 to 180 days: 5.70%
181 to 270 days: 6.60%
271 days to less than one year: 6.65%
One year: 7.10%
More than one year to less than 18 months: 7.15%
18 months: 7.40%
More than 18 months to less than two years: 7.15%
Two years to less than three years: 7.40%
Three years to 10 years: 7.20%
The highest regular callable FD interest rate for senior citizens is 7.40% on the eligible 18-month and two-year to less-than-three-year deposits.
What Interest Rates Will Regular Customers Get?
Regular customers will also receive competitive returns under the revised Federal Bank FD structure. However, their interest rates are lower than those offered to senior citizens.
The bank is offering 6.80% annual interest on 18-month fixed deposits and deposits with tenures of two years to less than three years.
For other selected periods, the rates include 6.50% for a one-year deposit, 6.55% for deposits exceeding one year but below 18 months, and 6.60% for deposits ranging from three years to 10 years.
For shorter deposits, the applicable interest rates vary according to the investment period. Customers should check the bank’s latest rate chart before opening an FD.
Can Senior Citizens Earn 7.50% Interest?
Apart from regular fixed deposits, Federal Bank is also offering a higher interest rate on certain large deposits without a premature withdrawal facility.
Senior citizens investing Rs 1 crore or more in eligible term deposits without the option of premature withdrawal can earn up to 7.50% annual interest.
This is different from regular callable fixed deposits, which allow customers to withdraw their money before maturity subject to the bank’s applicable terms and conditions.
For investors choosing the non-callable option, the higher interest rate comes with an important limitation.
Since premature withdrawal is not permitted, depositors should carefully consider their financial requirements before locking in their savings.
The bank’s revised rates also distinguish between the regular interest rate and the effective annualised yield. The latter takes the applicable compounding and deposit tenure into account.
What Should Customers Check Before Opening an FD?
A higher interest rate does not automatically make a fixed deposit the best option for every investor.
Customers should consider the deposit tenure, withdrawal conditions and their need for emergency funds before investing.
Senior citizens should particularly compare the returns available on different deposit periods.
An 18-month FD offering 7.40% may be suitable for someone comfortable keeping their money invested for that period, while others may prefer a shorter tenure for greater flexibility.
Customers should also understand that FD interest is taxable according to the applicable income tax rules. The final post-tax return may therefore differ depending on the depositor’s tax position.
Deposits with eligible banks are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme, subject to its prescribed conditions and limits.
The insurance cover is up to Rs 5 lakh per depositor per bank, including principal and interest.
With the revised rates effective from November 12, 2026, customers planning a new fixed deposit should compare the available options and confirm the applicable interest rate with Federal Bank before investing
