FD rates for senior citizens hit 8.5%: Check best offers by various lenders

Small finance banks offer highest rates; their largest peers are conservative and stable

Senior citizens get higher returns on fixed deposits (FDs), with several banks offering interest rates upwards of 8 per cent. According to data from Paisabazaar.com, small finance banks (SFBs) have the most attractive rates.

SFBs FD rates in September

• Slice Small Finance Bank – 8.5 per cent (18 months, special tenure) 
• ESAF Small Finance Bank – 8.1 per cent (444 days) 
• Utkarsh Small Finance Bank – 8.15 per cent (2–3 years) 
• Suryoday Small Finance Bank – 8.4 per cent (5 years) 
• Jana Small Finance Bank – 8 per cent (3–5 years) 
• Equitas Small Finance Bank – 7.9 per cent (888 days) 
• AU Small Finance Bank – 7.6 per cent (2–3 years) 
• Ujjivan Small Finance Bank – 7.95 per cent (2 years) 
• Unity Small Finance Bank – 7.25 per cent (501 days–5 years)

Fixed deposit rates September 2025 

Private sector banks FD rates

Several private sector banks are offering competitive rates in the 7-8 per cent range.

 

Private banks’ rates

 

• SBM Bank India – 8 per cent (5 years) 
• Jammu & Kashmir Bank – 7.8 per cent (888 days) 
• RBL Bank – 7.7 per cent (2–3 years) 
• YES Bank – 7.75 per cent (3–5 years) 
• Bandhan Bank – 7.7 per cent (2–3 years) 
• DCB Bank – 7.7 per cent (special tenures) 
• IDFC First Bank – 7.5 per cent (450 days–2 years) 
• IndusInd Bank – 7.5 per cent (1–2 years)

• Axis Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank – around 7.1–7.35 per cent

 

Public sector banks 

Public sector banks are more conservative, though a few offer rates close to private peers.

 

Public sector banks FD rates in September

 

• Central Bank of India – 7.5 per cent (2,222–3,333 days) 
• Bank of Baroda, State Bank of India, Punjab National Bank, Union Bank of India – 7.1 per cent (special schemes) 
• Bank of Maharashtra, Indian Bank, Indian Overseas Bank, Punjab & Sind Bank 7.2 to 7.25 per cent (various tenures) 
• Canara Bank – 7 per cent (444 days)

 

Foreign banks FD rates

 

Rates at foreign banks remain modest.

 

• Standard Chartered Bank – 7.1 per cent (1year - 370 days) 
• Deutsche Bank – 7 per cent (above 1 year - 2 years) 
• HSBC – 6 per cent (601 to 699 days-48 months to 60 months)

 

FD Rates for super senior citizens

 

Some banks extend additional benefits to depositors aged 80 and above:

 

• Punjab National Bank – extra 0.3 per cent 
• RBL Bank, Indian Bank, Indian Overseas Bank, Union Bank of India – extra 0.25 per cent 
• Bank of Baroda, State Bank of India, Canara Bank – extra 0.1 per cent

 

For those relying on interest income, shopping around for the best FD rates can make a significant difference. While small finance banks currently offer the most attractive returns, depositors should weigh risks, deposit insurance cover, and liquidity needs before locking in funds.