FD interest rates up to 9.10%: 15 banks offer 7.80% or more to seniors

Best FD Rates: Despite repo rate cuts, 15 banks still offer 7.80 per cent or higher on fixed deposits for senior citizens, with some going up to 9.10 per cent for specific tenures below Rs 3 crore

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Can you still get over 8 per cent on a fixed deposit? Despite this year’s repo rate cuts, the answer is yes—at least for now.

 

The Reserve Bank of India (RBI) has cut the repo rate by 100 basis points since February 2025. In response, several banks have reduced their fixed deposit (FD) interest rates. But a few small finance and private banks continue to offer interest rates above 7.80 per cent, especially for senior citizens.

 

Top FD rates as of June 30, 2025

 

For deposits below Rs 3 crore, some small finance banks are offering relatively high FD rates for senior citizens. As of June 28, 2025, Unity Small Finance Bank is offering the highest FD rate at 9.10 per cent for a tenure of 1001 days. Suryoday Small Finance Bank follows with 8.80 per cent for tenures above 30 months and up to 3 years. Utkarsh Small Finance Bank is offering 8.75 per cent for deposits held between 2 and 3 years. Slice Small Finance Bank is offering 8.50 per cent for a narrowly defined window of 18 months 1 day to 18 months 2 days. Equitas Small Finance Bank offers 8.40 per cent for a tenure of 888 days.

 

All rates apply to senior citizens and are available on deposits of less than Rs 3 crore. These figures are based on each bank’s official website as of June 28, 2025.

 

Regular depositors can also find rates above 8 per cent, though options are fewer. Experts say locking in the current rate may help, as further cuts could follow if the repo rate continues to drop.

 

Tax rules on FD interest

 

Interest earned on fixed deposits is taxable. If the interest exceeds a certain threshold, tax is deducted at source.

 

“Interest earned on FDs is taxable, with tax deducted at source (TDS) if it exceeds a specified limit,” said Adhil Shetty, CEO of BankBazaar.

 

The 2025 Union Budget raised the TDS threshold:

 

For general citizens: From Rs 40,000 to Rs 50,000

For senior citizens: From Rs 50,000 to Rs 1 lakh

 

Take the example of Nupur, a 38-year-old resident of Noida. She earns Rs 75,000 in annual FD interest. Since the new threshold for general citizens is Rs 50,000, TDS applies on the excess Rs 25,000. At 10 per cent, the deducted tax is Rs 2,500.

 

That Rs 75,000 also counts as part of her total taxable income. But if her overall income is below Rs 2.5 lakh, she doesn't owe additional tax. To avoid TDS in such a case, she can submit Form 15G at the start of the financial year, declaring her income falls below the taxable limit.

 

Senior citizens can submit Form 15H for the same purpose.

 

Here’s a list of 15 banks offering 7.8% or more on fixed deposit interest rates as of 28, June 2025, according to Paisabazaar:

 

Small Finance Banks

 

1. Equitas Small Finance Bank

 

Highest rate: 8.40 per cent for 888 days

1-year: 8.10 per cent

3-year: 8.00 per cent

5-year: 7.75 per cent

10-year: 7.75 per cent

No extra rate for super senior citizens

 

2. ESAF Small Finance Bank

 

Highest rate: 8.10 per cent for 444 days

1-year: 5.25 per cent

3-year: 6.50 per cent

5-year: 6.25 per cent

10-year: 6.25 per cent

No extra rate for super senior citizens

 

3. Jana Small Finance Bank

 

Highest rate: 8.25 per cent (Above 1 year to 3 years)

1-year: 8.00 per cent

3-year: 8.25 per cent

5-year: 8.20 per cent

10-year: 7.00 per cent

No extra rate for super senior citizens

 

4. Slice Small Finance Bank

 

Highest rate: 9.00 per cent (18 months 1 day to 18 months 2 days)

1-year: 7.00 per cent

3-year: 8.25 per cent

5-year: 8.25 per cent

10-year: 6.75 per cent

No extra rate for super senior citizens

 

5. Suryoday Small Finance Bank

 

Highest rate: 8.80 per cent (Above 30 months to 3 years)

1-year: 8.30 per cent

3-year: 8.80 per cent

5-year: 8.40 per cent

10-year: 7.65 per cent

No extra rate for super senior citizens

 

6. Ujjivan Small Finance Bank

 

Highest rate: 8.25 per cent for 2 years

1-year: 8.15 per cent

3-year: 7.70 per cent

5-year: 7.70 per cent

10-year: 7.00 per cent

No extra rate for super senior citizens

 

7. Unity Small Finance Bank

 

Highest rate: 9.10 per cent for 1001 days

1-year: 7.50 per cent

3-year: 8.50 per cent

5-year: 8.50 per cent

10-year: 7.50 per cent

No extra rate for super senior citizens

 

8. Utkarsh Small Finance Bank

 

Highest rate: 8.75 per cent (2 to 3 years)

1-year: 6.75 per cent

3-year: 8.75 per cent

5-year: 8.25 per cent

10-year: 7.75 per cent

No extra rate for super senior citizens

 

Private Sector Banks

 

9. Bandhan Bank

 

Bandhan Bank Highest rate: 8.25 per cent for 1 year

1-year: 8.25 per cent

3-year: 7.75 per cent

5-year: 6.60 per cent

10-year: 6.60 per cent

No extra rate for super senior citizens

 

10. CSB Bank

 

CSB Highest rate: 7.90 per cent for 13 months

1-year: 5.50 per cent

3-year: 6.25 per cent

5-year: 6.25 per cent

10-year: 6.50 per cent

No extra rate for super senior citizens

 

11. DCB Bank

 

DCB Bank Highest rate: 7.90 per cent (25 to 26 months)

1-year: 7.25 per cent

3-year: 7.25 per cent

5-year: 7.25 per cent

10-year: 7.25 per cent

No extra rate for super senior citizens

 

12. Jammu & Kashmir Bank

 

Highest rate: 7.80 per cent for 888 days

1-year: 7.25 per cent

3-year: 7.25 per cent

5-year: 7.00 per cent

10-year: 7.00 per cent

No extra rate for super senior citizens

 

13. RBL Bank

 

RBL Bank Highest rate: 7.80 per cent for 500 days

1-year: 7.60 per cent

3-year: 7.60 per cent

5-year: 7.50 per cent

10-year: 7.50 per cent

Super senior citizens get +0.25 per cent on all tenures

 

14. SBM Bank India

 

SBM Bank India Highest rate: 8.55 per cent (Above 18 months to less than 2 years 3 days)

1-year: 8.00 per cent

3-year: 7.80 per cent

5-year: 8.25 per cent

10-year: 7.50 per cent

No extra rate for super senior citizens

 

15. YES Bank

 

YES Bank Highest rate: 7.85 per cent (3 years to less than 5 years)

1-year: 7.25 per cent

3-year: 7.85 per cent

5-year: 7.50 per cent

10-year: 7.50 per cent

No extra rate for super senior citizens