Senior citizen FD rates up to 8.3% this month: Know offers

Senior citizens can still earn up to 8.3%, with small finance banks offering the highest rates

Senior citizens can earn up to 8.25 per cent on fixed deposits (FDs) in late May, with small finance banks offering higher returns than large state-owned and private lenders.

 

Data compiled by Stable Money shows that while most major public sector banks are offering senior citizen FD rates between 6.75 per cent and 7.45 per cent, several small finance banks are offering rates above 8 per cent on select tenures.

 

Suryoday Small Finance Bank and Utkarsh Small Finance Bank are offering up to 8.25 per cent to senior citizens. Shivalik Small Finance Bank is offering up to 8.3 per cent on a special tenure deposit, while Unity Small Finance Bank is offering 8 per cent on one-year FDs.

 

 

Public banks offer lower but stable returns

 

Among public-sector lenders, Bank of India is offering the highest senior citizen FD rate at 7.45 per cent for a three-year tenure.

 

Other large banks include:

 

• State Bank of India: Up to 7.05 per cent
• Punjab National Bank: Up to 7.1 per cent
• Bank of Baroda: Up to 7 per cent
• Most public banks are offering around 6.75-7 per cent on one-year to five-year deposits for senior citizens.

 

Private banks and small finance banks lead rates

 

Several private banks are offering rates above 7.5 per cent for medium-term deposits.

 

For instance:

 

• Bandhan Bank: 7.75 per cent
• Yes Bank: 7.75 per cent
• RBL Bank: 7.7 per cent
• IDFC First Bank: 7.5 per cent
• IndusInd Bank: 7.5 per cent

 

Meanwhile, HDFC Bank, ICICI Bank and Axis Bank are offering peak senior citizen FD rates between 7 per cent and 7.2 per cent.

 

Among NBFCs, Bajaj Finance and Shriram Finance are offering up to 7.75 per cent on three-year deposits. 

Bank Name	Bank Type	Special rate (Senior)	Special Tenure (Senior)	Sr Highest Rate (%)	Sr Highest Rate Tenure	Sr 1Y (%)	Sr 3Y (%)	Sr 5Y (%)	Sr 10Y (%)
Bank of Baroda	PUBLIC_BANK_TYPE			7	10Y	6.75	6.75	6.9	7
Bank of India	PUBLIC_BANK_TYPE			7.45	3Y	7	7.45	6.75	6.75
PNB	PUBLIC_BANK_TYPE			7.1	444D	6.75	6.8	6.6	6.8
SBI	PUBLIC_BANK_TYPE			7.05	5Y	6.75	6.8	7.05	7.05
Axis Bank	PRIVATE_BANK_TYPE			7.2	5Y	6.75	6.95	7.2	7.2
Bandhan Bank	PRIVATE_BANK_TYPE			7.75	3Y	7.5	7.75	6.6	6.6
FEDERAL BANK LTD.	PRIVATE_BANK_TYPE			7.25	3Y	6.75	7.25	6.9	6.9
HDFC Bank	PRIVATE_BANK_TYPE			7	3Y1D-4Y7M	6.75	6.95	6.9	6.65
ICICI Bank	PRIVATE_BANK_TYPE			7.1	5Y	6.75	6.95	7.1	7
IDFC First Bank	PRIVATE_BANK_TYPE			7.5	3Y	6.75	7.5	7.4	6.25
IndusInd Bank	PRIVATE_BANK_TYPE			7.5	1Y 6M	7.25	7.4	7.15	7
Kotak Mahindra Bank	PRIVATE_BANK_TYPE			7.3	2Y	7	6.9	6.75	6.75
RBL Bank	PRIVATE_BANK_TYPE			7.7	3Y	7.5	7.7	7.2	7.2
South Indian Bank	PRIVATE_BANK_TYPE			7.3	30M	6.75	6.7	6.2	6.2
Yes Bank	PRIVATE_BANK_TYPE			7.75	3Y	7.15	7.75	7.5	7.5
AU SF Bank	SMALL_FINANCE_BANK_TYPE			7.75	3Y	6.85	7.75	7.25	7.25
Jana SF Bank	SMALL_FINANCE_BANK_TYPE			8	3Y	7.5	8	7.77	7
Shivalik SF Bank	SMALL_FINANCE_BANK_TYPE	8.30%	1Y10M			6.5	6.5	6.75	6.75
Suryoday SF Bank	SMALL_FINANCE_BANK_TYPE	8.25%	2Y6M			7.4	7.4	8.05	7.4
Ujjivan SF Bank	SMALL_FINANCE_BANK_TYPE	7.95%	2Y			7.75	7.7
Unity SF Bank	SMALL_FINANCE_BANK_TYPE	8.00%	1Y			8	7.25	7.25
Utkarsh SF Bank	SMALL_FINANCE_BANK_TYPE	8.25%	1Y 301D			6.5	8	7.5
slice SF Bank	SMALL_FINANCE_BANK_TYPE	7.75%	1Y6M1D			6.5	7.5	7.25
Bajaj Finance	NBFC_BANK_TYPE	7.75%	3Y			6.95	7.75	7.75	NA
Shriram Finance	NBFC_BANK_TYPE	7.75%	3Y			7.25	7.75	7.75	NA

 

“FD interest rates continue to remain attractive across banks, giving investors a good opportunity to lock in higher yields for the medium to long term,” said Saurabh Jain, cofounder and chief executive officer of Stable Money.

 

However, he cautioned investors against chasing only the highest rates.

 

“Along with returns, assessing the safety and fundamentals of the bank is equally important. Depositors should look at factors such as the bank’s asset quality, capital position, and overall stability,” he said.

 

What senior citizens should keep in mind

 

Financial planners say senior citizens should balance returns with safety while selecting FDs, especially because many retirees depend on interest income for regular expenses.

 

Experts suggest evaluating:

 

• The financial strength of the institution
• Deposit insurance coverage
• Liquidity requirements
• Tenure suitability
• Diversification across banks