Fixed deposit rates for senior citizens: What banks are offering in Sept

Small finance banks offer the highest returns; their larger peers have conservative terms

Senior citizens considering fixed deposit (FD) investments will find that small finance banks (SFBs) offer the highest rates — upwards of 8 per cent.

 

Small finance banks

slice Small Finance Bank offers the highest return: of 8.50 per cent for deposits of 18 months and a day to 18 months and two days. It is followed by Suryoday Small Finance Bank, with 8.40 per cent for five-year deposits. Other notable offers include:

 

Utkarsh Small Finance Bank: 8.15 per cent for two to three years

 

ESAF Small Finance Bank and Shivalik Small Finance Bank: 8.10 per cent on select tenures

 

Jana Small Finance Bank: 8.00 per cent for deposits above two years to three years, and five years

 

SFBs offer the highest rates for short- to medium-term deposits.

 

Private banks

Among private sector lenders, SBM Bank India leads with 8.00 per cent on five-year deposits. Jammu & Kashmir Bank follows at 7.80 per cent for 888-day deposits, while YES Bank offers 7.75 per cent for three to five years. A few others worth noting:

 

RBL Bank: 7.70 per cent (two years and a day to three years)

 

DCB Bank: 7.70 per cent (27 months, select tenures)

 

Bandhan Bank: 7.70 per cent (two to less than three years)

 

Public sector banks

Public-sector banks are comparatively conservative. The highest rates hover around 7.25 per cent, available at Indian Overseas Bank (444 days) and Central Bank of India (2,222 and 3,333 days). Other leading offers include:

 

Bank of Maharashtra, Indian Bank, and Punjab & Sind Bank at 7.20 per cent for special tenures

 

SBI, PNB, Union Bank, and Bank of Baroda at around 7.10 per cent for 1–3 year deposits

 

What this means for investors

While private and public sector banks provide the comfort of established brands, senior citizens seeking higher income may find SFBs more rewarding. However, experts advise weighing safety, deposit insurance cover, and diversification before committing to long tenures.