Public vs private banks: Who offers best FD rates for senior citizens?

As senior citizens plan their investments in Fixed Deposits (FDs), interest rates have become a key factor in their decision-making. With several banks still offering FD interest rates of 8% or more for senior citizens, now is the time to maximize returns on long-term savings.  Here’s a detailed comparison of public sector banks, private sector banks, and small finance banks, helping senior citizens find the best options for investment.

 

FD Rates for Senior Citizens

 

Top banks offering over 8% FD Rates for Senior Citizens

• Suryoday Small Finance Bank - Offers a whopping 9.10% on 5-year FD tenures. This is one of the highest rates available among small finance banks, making it a strong option for senior citizens looking to invest for long-term growth.
• Unity Small Finance Bank - Offers 9.50% on a 1001-day FD, which is an excellent rate for those who want to lock in their funds for a mid-term period.
• Equitas Small Finance Bank - With an offering of 9.00% on an 888-day FD, this is a good choice for senior citizens who wish to invest for around 2.5 years.
• YES Bank - Offers 8.50% on an 18-month FD, and is also known for providing a decent interest rate for shorter tenures, appealing to senior citizens who want more flexibility.
• IndusInd Bank - Providing 8.49% on a tenure of 1 year 5 months, this is a good choice for senior citizens who need steady returns without locking their funds for too long.
• Bandhan Bank - Offering 8.55% on a 1-year FD, this is a short-term option that ensures good returns for senior citizens who don't want to commit to long tenures.

 

 

Public vs. Private Sector Banks: Who Offers the Best FD Rates for Senior Citizens?

 

In terms of interest rates, small finance banks and private sector banks tend to offer higher rates compared to their public sector counterparts. For example, Unity Small Finance Bank offers 9.50%, while Equitas and Suryoday offer around 9%. On the other hand, public sector banks such as State Bank of India and Punjab National Bank offer relatively lower rates, hovering around 7.75% to 8.00%.

 

Private Sector Banks:

Private sector banks like Bandhan Bank, IndusInd Bank, and ICICI Bank are offering senior citizens attractive rates of around 8.00% to 8.55%.

These banks are known for their flexibility, with some offering additional benefits or higher rates for specific FD tenures, making them an appealing option for those seeking higher returns.

 

YES Bank, Axis Bank, and HDFC Bank provide reliable services with competitive rates, making them a trusted choice for senior citizens.

 

Public Sector Banks:

Public sector banks such as Bank of India, Canara Bank, and SBI offer FD rates ranging from 7.75% to 8.00%.

While the rates are slightly lower than those of private sector or small finance banks, they provide a sense of security due to their government backing.  PUBLIC SECTOR BANKS 

 

How Many Banks Are Offering 8% or More for Senior Citizen FDs?

Several banks—especially small finance banks and private sector banks—are offering FD interest rates of 8% or higher. As of February 2025, more than 15 banks are offering attractive rates over 8% for senior citizens. Some of the best offers come from small finance banks like Unity Small Finance Bank (9.50%), Suryoday Small Finance Bank (9.10%), and Equitas Small Finance Bank (9.00%). 

FD Rates for Senior Citizens at Different Banks

Small Finance Banks

AU Small Finance Bank:

 

• 1-year FD: 7.75%
• 3-year FD: 8.00%
• 5-year FD: 7.75%
• 10-year FD: 7.75%
• Highest Rate: 8.60% (18 months)

Equitas Small Finance Bank:

 

• 1-year FD: 8.60%
• 3-year FD: 8.50%
• 5-year FD: 7.75%
• 10-year FD: 7.75%
• Highest Rate: 9.00% (888 days)

ESAF Small Finance Bank:

 

• 1-year FD: 6.50%
• 3-year FD: 7.25%
• 5-year FD: 6.75%
• 10-year FD: 6.75%

Highest Rate: 8.88% (888 days) 

Jana Small Finance Bank:

 

• 1-year FD: 8.75%
• 3-year FD: 8.75%
• 5-year FD: 8.20%
• 10-year FD: 7.00%
• Highest Rate: 8.75% (1 year to 3 years)

NorthEast Small Finance Bank:

 

1-year FD: 7.50%

3-year FD: 9.00%

5-year FD: 8.50%

10-year FD: 6.75%

Highest Rate: 9.00% (18 months to 36 months) 

Suryoday Small Finance Bank:

 

• 1-year FD: 8.75%
• 3-year FD: 8.75%
• 5-year FD: 9.10%
• 10-year FD: 7.75%
• Highest Rate: 9.10% (5 years)

Ujjivan Small Finance Bank:

• 1-year FD: 8.75%
• 3-year FD: 7.70%
• 5-year FD: 7.70%
• 10-year FD: 7.00%
• Highest Rate: 8.75% (12 months)

Unity Small Finance Bank:

 

• 1-year FD: 8.35%
• 3-year FD: 8.65%
• 5-year FD: 8.65%
• 10-year FD: 8.00%
• Highest Rate: 9.50% (1001 days)

Utkarsh Small Finance Bank:

 

• 1-year FD: 8.60%
• 3-year FD: 9.10%
• 5-year FD: 8.35%
• 10-year FD: 7.85%
• Highest Rate: 9.10% (2-3 years)

Private Sector Banks

Axis Bank:

 

• 1-year FD: 7.20%
• 3-year FD: 7.60%
• 5-year FD: 7.75%
• 10-year FD: 7.75%
• Highest Rate: 7.75% (15 months to 10 years)

Bandhan Bank:

 

1-year FD: 8.55%

3-year FD: 7.75%

5-year FD: 6.60%

10-year FD: 6.60%

Highest Rate: 8.55% (1 year) 

City Union Bank:

 

• 1-year FD: 7.25%
• 3-year FD: 6.75%
• 5-year FD: 6.50%
• 10-year FD: 6.50%
• Highest Rate: 8.00% (333 days)

CSB Bank:

 

• 1-year FD: 5.50%
• 3-year FD: 6.25%
• 5-year FD: 6.25%
• 10-year FD: 6.50%
• Highest Rate: 8.00% (501 days)

DBS Bank:

 

• 1-year FD: 7.50%
• 3-year FD: 7.00%
• 5-year FD: 7.00%
• 10-year FD: 7.00%
• Highest Rate: 8.00% (376-540 days)

DCB Bank:

 

• 1-year FD: 8.00%
• 3-year FD: 7.90%
• 5-year FD: 7.75%
• 10-year FD: 7.75%
• Highest Rate: 8.55% (19-20 months)

Federal Bank:

 

• 1-year FD: 7.50%
• 3-year FD: 7.60%
• 5-year FD: 7.60%
• 10-year FD: 7.10%
• Highest Rate: 8.00% (444 days)

HDFC Bank:

 

• 1-year FD: 7.10%
• 3-year FD: 7.50%
• 5-year FD: 7.50%
• 10-year FD: 7.50%
• Highest Rate: 7.90% (4 years 7 months)

ICICI Bank:

 

• 1-year FD: 7.20%
• 3-year FD: 7.50%
• 5-year FD: 7.50%
• 10-year FD: 7.40%
• Highest Rate: 7.85% (15 months-18 months)

IDFC FIRST Bank:

 

• 1-year FD: 7.00%
• 3-year FD: 7.30%
• 5-year FD: 7.25%
• 10-year FD: 7.00%
• Highest Rate: 8.40% (400-500 days)

IndusInd Bank:

 

• 1-year FD: 8.25%
• 3-year FD: 7.75%
• 5-year FD: 7.75%
• 10-year FD: 7.50%

Highest Rate: 8.49% (1 year 5 months to 1 year 6 months)

Jammu & Kashmir Bank:

 

• 1-year FD: 7.50%
• 3-year FD: 7.25%
• 5-year FD: 7.00%
• 10-year FD: 7.00%
• Highest Rate: 7.75% (444 days)

Karur Vysya Bank:

 

• 1-year FD: 7.40%
• 3-year FD: 7.40%
• 5-year FD: 7.40%
• 10-year FD: 6.65%
• Highest Rate: 8.10% (760 days)

Karnataka Bank:

 

• 1-year FD: 7.75%
• 3-year FD: 7.00%
• 5-year FD: 7.00%
• 10-year FD: 6.30%
• Highest Rate: 8.00% (401 days)

 

• Kotak Mahindra Bank:
• 1-year FD: 7.60%
• 3-year FD: 7.60%
• 5-year FD: 6.70%
• 10-year FD: 6.70%
• Highest Rate: 7.90% (390 days to 23 months)

RBL Bank:

 

• 1-year FD: 8.00%
• 3-year FD: 7.60%

Source: Paisabazaar