Senior citizen FD rates: Federal Bank offers 7.20%, HDFC Bank raises select tenure to 7.10%—should you switch?

Senior citizens can now earn up to 7.20% a year on fixed deposits with Federal Bank, while HDFC Bank has raised its rate to 7.10% for a select tenure. However, before breaking an existing FD to chase a higher rate, investors should weigh premature withdrawal penalties, taxes and the remaining tenure.