555-day FD rates: City Union Bank tops at 7.25%; check rates from 5 other banks

Fixed deposits (FDs) remain a preferred option for investors seeking predictable returns without direct exposure to market volatility. For those looking at a specific tenure, 555-day FDs offered by several banks currently provide interest rates of up to 7.25% for general citizens and as much as 7.50% for senior citizens.

According to Paisabazaar data as of September 16, 2026, City Union Bank offers the highest rate among the six banks at 7.25% for general citizens on a 555-day FD. Senior citizens can earn 7.50% on the same tenure.

City Union Bank offers highest 555-day FD rate

City Union Bank's 555-day fixed deposit offers 7.25% to general citizens and 7.50% to senior citizens. This is the highest rate among the six banks covered in the comparison.

Karnataka Bank is next, offering 7% to general citizens and 7.40% to senior citizens for the same 555-day tenure.

Bank of Baroda offers 6.75% to general citizens and 7.25% to senior citizens on its 555-day FD.

Indian Bank, Canara Bank and Union Bank rates

Indian Bank offers 6.65% to general citizens for a 555-day fixed deposit, while senior citizens can earn 7.15%.

Canara Bank offers 6.60% to general citizens and 7.10% to senior citizens on the same tenure.

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Union Bank of India has the lowest rate among the six banks in this comparison, offering 6.55% to general citizens and 7.05% to senior citizens.

Source: Paisabazaar data as of September 16, 2026.

Senior citizens get higher rates

Across all six banks, senior citizens receive a higher interest rate than general depositors on the 555-day tenure. The additional rate ranges from 0.25 percentage point to 0.50 percentage point, depending on the bank.

City Union Bank provides the highest senior-citizen rate in the comparison at 7.50%, followed by Karnataka Bank at 7.40%.

The difference in rates means depositors should compare both the tenure and the applicable customer category before booking an FD. Interest rates can also change, so investors should check the respective bank's latest rates before opening a deposit.

555-Day FD Rates for Senior Citizens

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TDS applies beyond specified interest thresholds

Interest earned on fixed deposits can also have tax implications. For non-senior citizens below 60 years, TDS on interest income applies when the total interest earned during a financial year exceeds ₹50,000.

For senior citizens aged 60 years and above, the threshold is ₹1 lakh in a financial year. These thresholds apply to aggregate interest income covered under the relevant TDS provisions.

The 555-day tenure may therefore appeal to depositors looking for a defined investment period and fixed returns, but the applicable interest rate, tax treatment and latest bank terms should be checked before investing.