6 Small Finance Banks offer FD rates of of 8.5% and above for seniors

For senior citizens looking to secure their savings while earning attractive returns, small finance banks in India are still proving to be a reliable option. Offering some of the highest interest rates on Fixed Deposits (FDs), several small finance banks are giving seniors the opportunity to maximize their savings, with six banks now offering interest rates of 8.5% and above.

 

Here’s a look at the standout banks that are offering competitive FD rates for senior citizens:

 

1. Equitas Small Finance Bank

Equitas stands out with 8.60% for 1-year Fixed Deposits and 8.50% for 3-year deposits. 

2. Jana Small Finance Bank

 

Jana Small Finance Bank offers an attractive 8.75% for 1-year to 3-year FDs, making it one of the top banks for senior citizens. This higher interest rate is particularly appealing to those looking for short to medium-term investments.

 

3. NorthEast Small Finance Bank

NorthEast Small Finance Bank offers an impressive 9.00% on 1-year to 36-month Fixed Deposits. For seniors looking for a solid medium-term FD option with excellent returns, this bank’s rates are among the most competitive in the market.

 

4. Suryoday Small Finance Bank

Suryoday shines with 9.10% for 5-year Fixed Deposits, one of the highest rates in the industry. Seniors willing to lock in their funds for a longer tenure can benefit from these attractive returns, making it a preferred choice for long-term investors.

 

5. Ujjivan Small Finance Bank

Ujjivan offers 8.60% on 18-month Fixed Deposits, providing a solid option for senior citizens who prefer a medium-term investment with a decent return.  

6. Unity Small Finance Bank

Unity offers a stellar 9.50% for 1001-day deposits and 8.65% for 3-year Fixed Deposits. 

 

Why Are These Rates Attractive?

The interest rates above 8.5% are particularly appealing for senior citizens, as they offer higher returns compared to most traditional banks, making them a great option for those relying on fixed income from their savings.   What about private banks?

Private sector banks are also stepping up their offerings, with several providing FD rates of 8.5% and above, making them viable options for senior citizens looking to maximize their returns:

 

• Bandhan Bank leads with 8.55% for 1-year FD, one of the best rates among private sector banks.
• DCB Bank offers 8.50% for 15 months to less than 16 months, providing seniors with a competitive rate for medium-term FDs.
• RBL Bank offers 8.50% on 500-day FD.
• YES Bank provides 8.50% on 18-month FD, alongside 8.25% for 1-year and 8.00% for 3-year FDs.

Private Sector Banks and Their FD Rates for Senior Citizens

Axis Bank

 

1-year FD: 7.20%

3-year FD: 7.60%

5-year FD: 7.75%

10-year FD: 7.75%

 

City Union Bank

 

1-year FD: 7.25%

3-year FD: 6.75%

5-year FD: 6.50%

10-year FD: 6.50%

City Union Bank provides modest rates of 7.25% for short-term deposits, with rates tapering off for longer tenures.

 

CSB Bank

 

1-year FD: 5.50%

3-year FD: 6.25%

5-year FD: 6.25%

10-year FD: 6.50%

CSB Bank offers lower interest rates compared to many other private banks, starting at 5.50% for short-term FDs.

 

DBS Bank

 

1-year FD: 7.50%

3-year FD: 7.00%

5-year FD: 7.00%

10-year FD: 7.00%

DBS offers a solid rate of 7.50% for short-term deposits, but the rates decrease for longer tenures.

 

Federal Bank

 

1-year FD: 7.50%

3-year FD: 7.60%

5-year FD: 7.60%

10-year FD: 7.10%

Federal Bank has competitive rates, offering 7.60% for medium-term deposits (3–5 years).

 

HDFC Bank

 

1-year FD: 7.10%

3-year FD: 7.50%

5-year FD: 7.50%

10-year FD: 7.50%

HDFC Bank offers steady rates of 7.10% to 7.50% for various tenures.

 

ICICI Bank

 

1-year FD: 7.20%

3-year FD: 7.50%

5-year FD: 7.50%

10-year FD: 7.40%

ICICI Bank offers a similar range of rates, with 7.50% for 3-year and 5-year deposits.

 

IDFC FIRST Bank

 

1-year FD: 7.00%

3-year FD: 7.30%

5-year FD: 7.25%

10-year FD: 7.00%

IDFC FIRST Bank provides competitive rates, with a slightly higher rate of 7.30% for a 3-year deposit.

 

IndusInd Bank

 

1-year FD: 8.25%

3-year FD: 7.75%

5-year FD: 7.75%

10-year FD: 7.50%

IndusInd Bank offers 8.25% for 1-year FD, making it one of the more attractive options among private banks for short-term deposits.

 

Jammu & Kashmir Bank

 

1-year FD: 7.50%

3-year FD: 7.25%

5-year FD: 7.00%

10-year FD: 7.00%

Jammu & Kashmir Bank offers fairly moderate interest rates, starting at 7.50% for 1-year FD.

 

Karur Vysya Bank

 

1-year FD: 7.40%

3-year FD: 7.40%

5-year FD: 7.40%

10-year FD: 6.65%

Karur Vysya Bank offers stable rates of 7.40% for both 1-year and 3-year deposits, but the rates drop for longer tenures.

 

Karnataka Bank

 

1-year FD: 7.75%

3-year FD: 7.00%

5-year FD: 7.00%

10-year FD: 6.30%

Karnataka Bank provides a higher rate of 7.75% for 1-year FD, but its longer tenures offer lower returns.

 

Kotak Mahindra Bank

 

1-year FD: 7.60%

3-year FD: 7.60%

5-year FD: 6.70%

10-year FD: 6.70%

Kotak Mahindra Bank offers 7.60% for 1-year and 3-year FDs, but the rates decrease for longer-term deposits.

 

RBL Bank

 

1-year FD: 8.00%

3-year FD: 8.00%

5-year FD: 7.60%

10-year FD: 7.50%

RBL Bank offers 8.00% on 1-year and 3-year FDs, making it an attractive option for medium-term investments.

 

SBM Bank India

 

1-year FD: 7.55%

3-year FD: 7.80%

5-year FD: 8.25%

10-year FD: 7.90%

SBM Bank India offers competitive rates of 8.25% for 5-year FD, making it a solid choice for longer-term deposits.

 

South Indian Bank

 

1-year FD: 7.30%

3-year FD: 7.20%

5-year FD: 6.50%

10-year FD: 6.50%

South Indian Bank offers moderate rates, with 7.30% for 1-year FD.

 

Tamilnad Mercantile Bank

 

1-year FD: 7.50%

3-year FD: 7.00%

5-year FD: 7.00%

10-year FD: 7.00%

Tamilnad Mercantile Bank provides steady but lower rates for long-term FDs, with 7.50% for 1-year deposits.

 

YES Bank

 

1-year FD: 8.25%

3-year FD: 8.00%

5-year FD: 8.00%

10-year FD: 7.75%

YES Bank offers 8.25% for 1-year FD, making it another top contender for senior citizens.