Fixed deposits (FDs) remain one of the safest and most preferred investment options for senior citizens in India. With higher interest rates offered by banks, they provide a steady income stream and financial security post-retirement. But which banks are currently offering the highest Senior Citizen FD interest rates in India? Let’s find out!
Best Senior Citizen FD Rates in India (2025)
| Bank Name | Highest Interest Rate for Senior Citizens | Tenure |
|---|---|---|
| Unity Small Finance Bank | 9.50% | 1001 days |
| Suryoday Small Finance Bank | 9.10% | 5 years |
| Utkarsh Small Finance Bank | 9.10% | 2-3 years, 1500 days |
| Equitas Small Finance Bank | 9.00% | 888 days |
| North East Small Finance Bank | 9.00% | 18 months – 36 months |
| Jana Small Finance Bank | 8.75% | 1-3 years |
| HDFC Bank | 7.90% | 55 months |
| ICICI Bank | 7.85% | 15-18 months |
| SBI (Amrit Vrishti FD) | 7.75% | 444 days |
For senior citizens, fixed deposits remain a safe and attractive investment for steady income and financial security. If you’re looking for the best interest rates, small finance banks currently offer the highest FD returns, while private and public sector banks provide stability and trust. Always compare interest rates, tenure, and withdrawal policies before making an investment decision.
Why Senior Citizens Should Invest in Fixed Deposits?
Investing in Fixed Deposits (FDs) for senior citizens offers multiple advantages:
- Higher Interest Rates: Senior citizens get an additional interest rate boost, typically 0.5% more than regular customers.
- Guaranteed Returns: Unlike the stock market, FDs provide fixed and assured returns, making them risk-free.
- Liquidity: Most banks allow premature withdrawal with a nominal penalty.
- Tax Benefits: Some FDs come under Section 80C of the Income Tax Act, offering tax deductions.
see also: LIC Fixed Deposit Scheme: Start with ₹10,000, 6.25% Interest
Best Senior Citizen FD Interest Rates in India (2025)
Let’s explore which banks are currently offering the highest FD rates for senior citizens:
1. Small Finance Banks – Highest FD Interest Rates
Small finance banks generally offer the best interest rates for senior citizens.
- Unity Small Finance Bank – Offers 9.50% interest on 1001-day FDs.
- Suryoday Small Finance Bank – Provides 9.10% interest on a 5-year FD.
- Utkarsh Small Finance Bank – Gives 9.10% interest for 1500 days.
- Equitas Small Finance Bank – Provides 9.00% for 888 days.
- North East Small Finance Bank – Offers 9.00% interest for 18 months – 36 months.
2. Private Sector Banks – Competitive FD Rates
While private banks don’t offer rates as high as small finance banks, they provide higher security and better services.
- HDFC Bank – 7.90% interest for 55 months.
- ICICI Bank – 7.85% interest for 15-18 months.
- IndusInd Bank – 8.49% interest for 17 months.
3. Public Sector Banks – Reliable & Stable Returns
Public sector banks provide stability and long-term trust for senior citizens.
- State Bank of India (SBI) – 7.75% for 444 days (Amrit Vrishti FD).
- Punjab & Sind Bank – 7.95% for 555 days.
- Bank of Maharashtra – 7.95% for 366 days.
How to Choose the Best FD for Senior Citizens?
When selecting the best Senior Citizen FD, consider the following factors:
1. Interest Rates & Tenure
Look for banks offering the highest interest rates for the desired tenure. Short-term FDs (1-3 years) offer higher returns compared to long-term deposits.
2. Premature Withdrawal Facility
Some banks charge a penalty for withdrawing before maturity. Opt for banks that allow flexible withdrawal with low penalties.
3. Credibility & Safety
Always check the bank’s credit rating and deposit insurance under the Deposit Insurance and Credit Guarantee Corporation (DICGC), which insures deposits up to ₹5 lakh per depositor.
4. Monthly or Quarterly Payouts
If you need a regular income, opt for monthly or quarterly interest payouts instead of reinvestment.
see also: Low Utilization of Credit Limit Will Increase CIBIL Score
Best Senior Citizen FD Rates in India (2025) FAQs
Q1. Which bank gives the highest FD interest rates for senior citizens?
Currently, Unity Small Finance Bank offers the highest FD rate of 9.50% for 1001 days.
Q2. Are small finance banks safe for senior citizen FDs?
Yes, small finance banks are regulated by RBI and provide insured deposits under DICGC up to ₹5 lakh.
Q3. Can I withdraw my senior citizen FD before maturity?
Yes, but some banks may charge a penalty of 0.5% – 1% on premature withdrawals.
Q4. How much tax will I pay on FD interest?
Interest earned above ₹50,000 per year is taxable under TDS for senior citizens.
Q5. Are there any special FD schemes for super senior citizens?
Yes, banks like RBL Bank offer additional 0.75% higher interest for super senior citizens (80+ years old).
