City Union Bank leads with top 555-day fixed deposit rates
Fixed deposits remain a reliable choice for investors looking for consistent returns without exposure to market fluctuations. Those aiming for a specific investment horizon can currently secure rates of up to 7.25% for general depositors and 7.50% for senior citizens on 555-day fixed deposits, based on figures from September 16, 2026.
City Union Bank offers the highest 555-day FD rates
Among the six banks reviewed, City Union Bank provides the most competitive rates, offering 7.25% to general depositors and 7.50% to senior citizens on 555-day fixed deposits. This represents the highest return available in the comparison.
Karnataka Bank follows with 7.00% for general citizens and 7.40% for senior citizens. Bank of Baroda delivers 6.75% to general depositors while senior citizens receive 7.25%. Indian Bank’s rates stand at 6.65% for general depositors and 7.15% for senior citizens. Canara Bank offers 6.60% to general depositors and 7.10% to senior citizens. Union Bank of India provides the lowest rates in this comparison, with 6.55% for general depositors and 7.05% for senior citizens.
Senior citizens consistently benefit from higher interest rates across all banks. The difference between general and senior rates ranges from 0.25% to 0.50%, depending on the institution. City Union Bank’s 7.50% rate for senior citizens remains the highest among the banks compared.
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Investors should verify current rates and terms before finalizing their deposits, as these can change over time.
Tax considerations vary by deposit amount and age
Interest earned on fixed deposits is subject to tax deductions at source (TDS) once specific thresholds are exceeded. For depositors under 60, TDS applies if annual interest exceeds ₹50,000. Senior citizens face TDS only when their annual interest surpasses ₹1 lakh.
The 555-day fixed deposit term provides a structured period for returns, but both interest rates and tax obligations differ depending on the bank and the depositor’s age category. Prospective depositors should confirm the latest terms before opening an account.
