SynopsisBandhan Bank has boosted fixed deposit interest rates, offering senior citizens a compelling up to 7.95% rate on select tenures. This revision, effective June 20, 2026, also sees other customers benefiting from competitive rates. The bank's savings accounts also provide attractive returns for higher balances. ET OnlineFD ratesSenior citizens can earn up to 7.95% interest rate on their fixed deposit (FD) investments at Bandhan Bank as the lender has increased its FD rate by 20 basis points on a select tenure. The new FD rates are applicable from June 20, 2026.After the FD rate revision, Bandhan Bank offers its highest interest rate of 7.95% to the senior citizen customers on tenures of two years to less than three years. On the same FD tenure, other customers will earn a 7.45% rate.The bank is also offering an attractive interest rate of 7.75% to senior citizens on fixed deposit tenures of three years to less than 5 years. Others will earn a 7.25% rate for the same term deposits, which is one of the best FD interest rates in the banking industry, as per a Bandhan Bank press release.Also Read: Rs 20 lakh investment for senior citizens: SBI FD vs SCSS vs RBI floating rate bond- which pays the highest?Details of Bandhan Bank FD interest rates & tenures are as below:BucketInterest rates for general citizensInterest rates for senior citizens7 days to 14 days2.95%3.70%15 days to 30 days2.95%3.70%31 days to less than 2 months3.45%4.20%2 months to less than 3 months4.20%4.95%3 months to less than 6 months4.20%4.95%6 months to less than 1 year4.20%4.95%1 year7.00%7.50%1 year 1 day to 1 year 9 months7.00%7.50%1 year 9 months 1 day to less than 2 years7.00%7.50%2 years to less than 3 years7.45%7.95%3 years to less than 5 years7.25%7.75%5 years to up to 10 years5.85%6.60%Bandhan Bank savings account interest ratesBandhan Bank also offers an interest rate of 6.5% on savings account balances above Rs 5 lakh to Rs 10 lakh.Balance BucketInterest Rate (p.a.)Balance up to ₹1 lakh2.70%Balance above ₹1 lakh to ₹5 lakh2.70%Balance above ₹5 lakh to ₹10 lakh6.50%Balance above ₹10 lakh to ₹50 lakh5.35%Balance above ₹50 lakh to ₹5 crore5.55%Balance above ₹5 crore to ₹50 crore6.00%Balance above ₹50 crore to ₹250 crore6.00%Premature FD withdraws rulesIf you withdraw your deposit before maturity, a 1% penalty will be applied. In such cases, interest will not be paid at the originally agreed rate. Instead, the bank will pay interest at the rate applicable to the amount withdrawn and for the period the money remained with the bank, after deducting a 1% penalty.Reinvestment of FDIn case of reinvestment deposits, the interest reinvested is post-TDS recovery and hence the maturity amount for re-investment deposits would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.Also Read: 8th Pay Commission: Why defence employees’ body wants changes in inflation index used for DA, DR calculationsTDS rules for FDTax deducted at source (TDS) is applicable for Interest earned over Rs 50,000 for general customers and Rs 1,00,000 for senior citizen customers in a year. FD customers can submit Form 121 as applicable if the annual income is below limit. Additionally, Form 121 has to be submitted by customers for any new retail term deposit (RTD) booking during a Financial Year. (Join our ETWealth WhatsApp channel for all the latest updates)...more