The beginning of November has brought great news for depositors, especially senior citizens, who prefer fixed deposits (FD) for safe investment and regular income. The country’s three major public sector banks—Punjab National Bank (PNB), Canara Bank and Bank of India (BOI)—have revised their interest rates on domestic fixed deposits of less than ₹3 crore.
Due to competition among banks to attract deposits, interest rates on FD schemes with special tenures have been increased to 7.35%. Senior citizens are being offered additional super senior citizen benefits up to 50 basis points (0.50%) over normal citizens.
| bank name | effective date | Highest rate for ordinary citizens | Highest rate for senior citizens | Tenure with highest interest |
| Canara Bank | 2 November 2026 | 6.75% | 7.25% | 555 days Special FD of |
| Punjab National Bank (PNB) | 1 November 2026 | 6.60% | 7.10% | 444 days Special FD of |
| Bank of India (BOI) | November 2026 | 6.85% | 7.35% | 500 days (BOI Renewable Deposit) |
Canara Bank has given a big benefit to medium term investors in its new rates effective from November 2:
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555 day special FD: The highest interest rate of 6.75% is being given to general citizens and 7.25% to senior citizens.
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444 day FD: General customers will get 6.65% interest and senior citizens will get 7.15% interest.
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Period from 1 year to 2 years: The rates have been fixed in the range of 6.25% to 6.40% for general citizens and 6.75% to 6.90% for senior citizens.
PNB has implemented changes in its fixed deposit rates from November 1:
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Duration of 444 days: The interest rate has been set at 6.60% for the general public and 7.10% for senior citizens above 60 years of age.
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666 days FD: General customers will get returns at the rate of 6.50% and senior citizens will get returns at the rate of 7.00%.
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1 year standard FD: 6.25% interest is being given to general citizens and 6.75% interest to senior citizens.
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Very Senior Citizens (above 80 years): Super Senior Citizens get an additional benefit of up to 80 basis points (0.80%) over the normal on select tenures.
Bank of India has updated the interest rates under its popular ‘BOI Akshay Deposit’:
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500 Day Special Bucket: In this special period, senior citizens are getting 7.35% annual interest, while for general customers the rate is 6.85%.
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3 Year Long Term FD: An attractive rate of 6.70% has been fixed for general citizens and 7.20% for senior citizens.
If a senior citizen deposits a lump sum amount of ₹5,00,000 in the top special periods of these banks, the estimated benefit works out as:
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BOI (500 days @ 7.35%): An investment of ₹5 lakh will yield interest of more than ₹52,000.
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Canara Bank (555 days @ 7.25%): The total return on maturity will work out to around ₹5,58,000.
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PNB (444 days @ 7.10%): There will be direct interest income of around ₹44,500 on the principal amount of ₹5 lakh.
Under Section 80TTB of the Income Tax Act for senior citizens, they can get FD from bank and post office. Full tax exemption on annual interest up to ₹50,000 is received. Banks deduct TDS at the rate of 10% only if the total interest income exceeds ₹50,000 in a financial year. Senior citizens whose total taxable income is zero can avoid TDS deduction by submitting ‘Form 15H’ through bank branch or net banking.