Fixed deposits (FDs) remain one of the safest and most popular investment choices for senior citizens in India. With the recent increase in interest rates, several banks now offer attractive FD interest rates, some as high as 9.5% per annum.
Highest Fixed Deposit (FD) Interest Rates for Senior Citizens
| Feature | Details |
|---|---|
| Highest Interest Rate | Up to 9.5% per annum |
| Best Banks for Senior Citizens | Unity Small Finance Bank, Suryoday Small Finance Bank, Utkarsh Small Finance Bank, Equitas Small Finance Bank, NorthEast Small Finance Bank |
| Best Tenures | 18 months to 5 years |
| Risk Factor | Low (FDs are considered one of the safest investment options) |
Senior citizens looking for safe investment options with high returns should consider fixed deposits. With FD interest rates as high as 9.5% p.a., now is a great time to invest. Compare different banks, choose the best tenure, and maximize your earnings!
Why Fixed Deposits Are a Great Choice for Senior Citizens
For retirees, fixed deposits offer a guaranteed return, providing financial security. Unlike market-linked investments, FDs are risk-free and allow senior citizens to plan their expenses effectively.
Advantages of Fixed Deposits
Guaranteed Returns – No market fluctuations. Higher Interest Rates for Senior Citizens – Typically 0.5% more than regular rates. Flexible Tenure – Choose from 7 days to 10 years. Loan Against FD – Get loans up to 90% of your FD amount. Tax Benefits – Certain tax-saving FDs help reduce taxable income
see also: MSSC Scheme: You will get a strong return on depositing ₹ 2 lakh!
Banks Offering the Best FD Interest Rates for Senior Citizens
1. Unity Small Finance Bank – Up to 9.5% p.a.
- Tenure: 1001 days
- Minimum Deposit: ₹1,000
- Maximum Deposit: ₹2 crore
- Payout Options: Monthly, Quarterly, Cumulative
- Official Website: unitybank.in
2. Suryoday Small Finance Bank – Up to 9.1% p.a.
- Tenure: 5 years
- Minimum Deposit: ₹1,000
- Maximum Deposit: ₹2 crore
- Payout Options: Monthly, Quarterly, Annually
- Official Website: suryodaybank.com
3. Utkarsh Small Finance Bank – Up to 9.1% p.a.
- Tenure: 2 to 3 years
- Minimum Deposit: ₹1,000
- Maximum Deposit: ₹2 crore
- Payout Options: Monthly, Quarterly, Annually
- Official Website: utkarsh.bank
4. Equitas Small Finance Bank – Up to 9% p.a.
- Tenure: 888 days
- Minimum Deposit: ₹5,000
- Maximum Deposit: ₹2 crore
- Payout Options: Cumulative, Monthly, Quarterly
- Official Website: equitasbank.com
5. NorthEast Small Finance Bank – Up to 9% p.a.
- Tenure: 18 months 1 day to 36 months
- Minimum Deposit: ₹1,000
- Maximum Deposit: ₹2 crore
- Payout Options: Monthly, Quarterly, Annually
- Official Website: nesfb.com
How to Open a Fixed Deposit as a Senior Citizen
- Choose a Bank – Compare interest rates and tenures.
- Decide the Deposit Amount & Tenure – Higher amounts and longer tenures often offer better rates.
- Visit the Bank or Apply Online – Most banks allow online FD bookings.
- Submit KYC Documents – Aadhaar, PAN, Address proof, and senior citizen proof.
- Deposit Funds – Choose between lump sum or periodic deposits.
- Select Payout Option – Monthly interest payouts or cumulative earnings.
see also: SBI FD Scheme! Opportunity for just 3 months, get great returns and secure your future
Highest Fixed Deposit (FD) Interest Rates FAQs
1. Which bank gives the highest FD interest rate to senior citizens?
Currently, Unity Small Finance Bank offers the highest 9.5% p.a. on a 1001-day fixed deposit.
2. Is it safe to invest in small finance bank FDs?
Yes. Small finance banks are regulated by the Reserve Bank of India (RBI), ensuring safety. However, only deposits up to ₹5 lakh are insured by DICGC.
3. Can senior citizens get tax benefits on FDs?
Yes. Under Section 80C of the Income Tax Act, investments in 5-year tax-saving FDs qualify for deductions up to ₹1.5 lakh.
4. What is the penalty for premature withdrawal?
Most banks charge a penalty of 0.5% – 1% on the interest rate in case of premature withdrawal.
5. Should I invest in multiple FDs?
Yes! Spreading investments across multiple banks reduces risk and ensures liquidity.
1 thought on “Highest Fixed Deposit (FD) Interest Rates for Senior Citizens in 2025”