RBI holds rates: Best FDs where senior citizens can still earn up to 8%

Senior citizen best fixed deposit interest rates: With the repo rate unchanged at 5.25%, depositors may still have time to lock higher fixed deposit returns before banks reprice

Best FD Rates in Feb: In a breather for fixed deposit investors, the Reserve Bank of India on Friday decided to keep the repo rate unchanged at 5.25 per cent in its first Monetary Policy Committee meeting of the year. The pause follows a 25 basis point cut announced in December 2025, which took the cumulative reduction since February 2025 to 125 basis points.

 

For depositors, the decision brings temporary stability to interest rates. With expectations of further easing later in the year, the current window may work for those looking to lock in fixed deposit returns before banks begin another round of repricing. 

"The move of the RBI to hold its interest rates as announced is a blessing for conservative investors, especially those who still hold FDs as their investment of choice," said Siddharth Maurya, founder and managing director of Vibhavangal Anukulakara Private Limited.

 

“The RBI’s decision to keep the repo rate unchanged offers much-needed stability for investors amid global uncertainty. Historically, repo rate cuts are followed by reductions in FD rates, so this pause creates a timely window for investors to lock in attractive fixed deposit returns,” said Saurabh Jain, co-founder and CEO of Stable Money, a fixed-income investment platform.

 

“With rates such as 7.75 per cent offered by Slice and 7.5 per cent from Utkarsh Bank still available, fixed deposits continue to be a compelling option for those seeking predictable and stable returns,” he said.

 

At the same time, higher-yield options are narrowing, particularly among larger lenders. Adhil Shetty, CEO of BankBazaar, said the scope for further upside in deposit rates remains limited under a steady-rate environment.

 

“While current liquidity conditions continue to support deposit mobilisation, the likelihood of materially higher FD rates emerging remains limited,” said Shetty. 

 

How fixed deposit investors can plan during a pause

 

For investors who prefer the certainty of fixed deposits, financial advisers suggest focusing on structure rather than chasing peak rates. Common strategies include spreading deposits across tenures and maintaining access to liquidity.

 

• Break deposits into multiple tenures to manage rate swings

• Keep some liquidity through staggered maturities

• Review the mix of bank FDs, corporate FDs and government-backed options

• Match choices with risk appetite, goals and time horizon

 

“Investors assessing locking strategies may benefit from spreading allocations across multi-year tenures to preserve returns before further repricing takes place,” said Shetty.

 

Senior citizen fixed deposits remain a key attraction, given the additional rate premiums offered by many banks. However, Shetty said these benefits may also adjust gradually as lenders settle into a lower reference-rate phase.

 

“Senior citizen premiums remain an advantage, though these too are expected to evolve as banks adjust to a stable but lower reference-rate regime,” he said.

 

Best FD rates for senior citizens in February 2026

 

Here are the top fixed deposit rates offered by banks and small finance banks for senior citizens, compiled by Paisabazaar.com.

 

Small finance banks

 

ESAF Small Finance Bank

Highest interest: 8.10 per cent

Highest slab tenure: 444 days

1-year FD: 5.25 per cent

3-year FD: 6.50 per cent

5-year FD: 6.25 per cent

10-year FD: 6.25 per cent

Super senior benefit: None

 

Jana Small Finance Bank

Highest interest: 8 per cent

Highest slab tenure: Above 2 years to 3 years

1-year FD: 7.50 per cent

3-year FD: 8 per cent

5-year FD: 7.77 per cent

10-year FD: 7 per cent

Super senior benefit: None

 

Shivalik Small Finance Bank

Highest interest: 8 per cent

Highest slab tenure: 21 months 1 day to 22 months

1-year FD: 6.50 per cent

3-year FD: 7.25 per cent

5-year FD: 6.75 per cent

10-year FD: 6.75 per cent

Super senior benefit: None

 

Suryoday Small Finance Bank

Highest interest: 8 per cent

Highest slab tenure: 5 years

1-year FD: 7.45 per cent

3-year FD: 7.45 per cent

5-year FD: 8 per cent

10-year FD: 7.45 per cent

Super senior benefit: None

 

Utkarsh Small Finance Bank

Highest interest: 8 per cent

Highest slab tenure: 2 years to 3 years

1-year FD: 6.50 per cent

3-year FD: 8 per cent

5-year FD: 7.50 per cent

10-year FD: 7.25 per cent

Super senior benefit: None

 

Private sector banks

 

Bandhan Bank

Highest interest: 7.70 per cent

Highest slab tenure: 2 years to less than 3 years

1-year FD: 7.50 per cent

3-year FD: 7.50 per cent

5-year FD: 6.60 per cent

10-year FD: 6.60 per cent

Super senior benefit: None

 

DCB Bank

Highest interest: 7.65 per cent

Highest slab tenure: 60 months to 61 months

1-year FD: 7.15 per cent

3-year FD: 7.25 per cent

5-year FD: 7.65 per cent

10-year FD: 7.25 per cent

Super senior benefit: Additional 0.05 per cent on 37–38 months and 60–61 months for those aged 70 and above

 

RBL Bank

Highest interest: 7.70 per cent

Highest slab tenure: 18 months to 3 years

1-year FD: 7.50 per cent

3-year FD: 7.70 per cent

5-year FD: 7.20 per cent

10-year FD: 7.20 per cent

Super senior benefit: Additional 0.25 per cent on all tenures

 

SBM Bank India

Highest interest: 7.80 per cent

Highest slab tenure: Above 18 months to less than 2 years 3 days

1-year FD: 7.50 per cent

3-year FD: 7.60 per cent

5-year FD: 7.50 per cent

10-year FD: 7.50 per cent

Super senior benefit: None

 

YES Bank

Highest interest: 7.75 per cent

Highest slab tenure: 3 years to less than 5 years

1-year FD: 7.15 per cent

3-year FD: 7.75 per cent

5-year FD: 7.50 per cent

10-year FD: 7.50 per cent

Super senior benefit: None

 

Public sector banks

 

Bank of India

Highest interest: 7.20 per cent

Highest slab tenure: 450 days under Star Swarnim

1-year FD: 6.75 per cent

3-year FD: 7 per cent

5-year FD: 6.75 per cent

10-year FD: 6.75 per cent

Super senior benefit: Additional 0.15 per cent on tenures from 180 days to 10 years

 

Bank of Maharashtra

Highest interest: 7.15 per cent

Highest slab tenure: 400 days

1-year FD: 6.70 per cent

3-year FD: 5.75 per cent

5-year FD: 5.50 per cent

10-year FD: 5.50 per cent

Super senior benefit: None

 

Indian Overseas Bank

Highest interest: 7.10 per cent

Highest slab tenure: 444 days

1-year FD: 7 per cent

3-year FD: 6.60 per cent

5-year FD: 6.60 per cent

10-year FD: 6.60 per cent

Super senior benefit: Additional 0.25 per cent on all tenures

 

Punjab & Sind Bank

Highest interest: 7.10 per cent

Highest slab tenure: 444 days

1-year FD: 6.35 per cent

3-year FD: 6.35 per cent

5-year FD: 6.45 per cent

10-year FD: 6.35 per cent

Super senior benefit: Additional 0.15 per cent on select tenures including 375, 444, 777 and 999 days, and PSB Green Earth schemes

 

State Bank of India

Highest interest: 7.05 per cent

Highest slab tenure: 5 years to 10 years

1-year FD: 6.75 per cent

3-year FD: 6.80 per cent

5-year FD: 7.05 per cent

10-year FD: 7.05 per cent

Super senior benefit: Additional 0.10 per cent on all tenures