New Delhi, Sept. 20 -- Senior citizens can earn up to 7.45% yearly interest in fixed deposits. The Bank of India offers this rate, the highest among major public sector banks. At Rs.1 lakh, this means Rs.7,450 per year, before tax and without compounding. For Rs.5 lakh, the same calculation gives Rs.37,250 per year.

However, earnings depend on the bank, the deposit period and the FD rates. The highest advertised rate does not apply to every deposit period. Readers should, therefore, confirm rates with their bank before depositing money.

Among the highest FD rates, Punjab & Sind Bank ranks next at 7.35%. This works out to Rs.7,350 per Rs.1 lakh. Bank of Baroda and Central Bank of India each show 7.25%. At that rate, Rs.1 lakh earns Rs.7,...