Bandhan Bank Revises FD Rates from June 20, 2026: Senior Citizens to Earn Up to 7.95% on 2-Year Deposits

Key Takeaways

1. Bandhan Bank raised fixed deposit interest rates by up to 20 basis points on June 20, 2026. Senior citizens now get up to 7.95% per annum on 2-year to 3-year deposits.
    
2. The bank also revised FCNR(B) deposit rates. NRI customers now get 7.1% on US dollar deposits of USD 1 million and above for 3-year to 5-year tenures.

FD Rates for Senior Citizens Announced by Bandhan Bank Starting from June 20, 2026

On June 20, 2026, Bandhan Bank increased the FD rates up to 20 bps. The interest rates offered to senior citizens on 2 years to 3 years deposit amount is 7.95% annually. The interest rates available to general customers for the same deposit tenure is 7.45%. The interest rates for one year of deposit period are 7.50% for senior citizens and 7.00% for regular customers.

Repo rate remained unchanged at 5.25% as per the RBI’s June 2026 policy. The deposit interest rate from six months to one year is 4.95% for senior citizens and 4.20% for regular customers. Bandhan also pays 6.5% interest on savings balances between ₹5 lakh and ₹10 lakh.

From Retirees to Regulars: Who Gains the Most from This Rate Revision?

Private banks are paying noticeably more than public sector banks in June 2026. DCB Bank leads at 8.00% for senior citizens, with Bandhan at 7.95% right behind. For 3-year to 5-year deposits, Bandhan pays 7.75% to senior citizens and 7.25% to general customers.

A senior citizen putting ₹5 lakh in Bandhan Bank at 7.95% for 2 years earns around ₹84,000 in interest before tax. The same amount at Union Bank's top rate of 6.65% earns roughly ₹71,000. That is a ₹13,000 difference on the same deposit. 

According to LoansJagat’s senior citizen FD guide, seniors get 0.25% to 0.75% more than general FD rates across banks, with Bandhan offering a 0.50% premium on most tenures. 

Which Tenure Gives You the Best Return? What Do You Need to Watch Out For?

Not every tenure at Bandhan pays well. The 5-year to 10-year deposit gives only 5.85% to general customers, far below the 7.45% available on 2-year deposits. Seniors get 6.60% on long-tenure deposits, which is also lower than what shorter tenures offer right now.

For customers above 70 years, DCB Bank’s Senior Citizens Plus category offers 8.05%, the highest among commercial banks in June 2026. On the tax side, senior citizens pay TDS only when the total FD interest in a financial year crosses ₹1,00,000, as per current Income Tax rules. Book before August 2026, when the next RBI policy review could shift rates again.

Conclusion

Bandhan Bank’s June 20, 2026, revision puts 7.95% on the table for senior citizens on 2-year to 3-year deposits. General customers get 7.45% on the same tenure. DCB Bank at 8.05% for 70-plus customers and Yes Bank at 7.75% for seniors are the only 2 options that beat Bandhan among listed banks this month. If you are a senior citizen planning an FD in June 2026, the 2-year tenure across these 3 banks gives the best guaranteed return right now.

FAQs

How do Bandhan Bank’s June 20, 2026, FD rates compare to Yes Bank, DCB Bank, and PNB?

Bandhan Bank offers 7.95% for senior citizens and 7.45% for general customers on 2-year to 3-year deposits. DCB Bank leads at 8.05% for customers above 70. Yes Bank pays 7.75% to senior citizens. PNB pays a maximum of 7.10% to senior citizens on 444-day deposits.

I have ₹25 lakhs FD at 6.5% in my parents’ name. So, which is the better bank for me in June 2026?

With 6.5%, I am earning ₹1,62,500 from ₹25 lakhs per annum. If I transfer it to Bandhan Bank @7.95%, then it will earn me ₹1,98,750. DCB Bank at 8.05% is the highest option for customers above 70 years old.