Fixed deposits (FDs) are a popular product because they offer guaranteed returns for a fixed tenure. Senior citizens too prefer FDs for safety, stability, and guaranteed returns. Apart from providing fixed returns, they are easy to understand, offer liquidity options, and may provide tax benefits in some cases. We have seen a series of interest rate hikes over the last 12 months or so, and FD rates have also gone up as well. While scheduled commercial banks like SBI, HDFC, Axis Bank, and others provide FD interest rates between 6.5% and 7.5%, rates for senior citizens are 25 to 50 basis points higher.