Senior citizen fixed deposit rates rise to 8.1%: Check banks' offers

Larger banks remain popular for institutional stability, according to data

Senior citizens get some of the most attractive fixed deposit (FD) rates, with private and small finance banks offering yields of 7.5–8.1 per cent for select tenures. Data from Paisabazaar.com shows that while large banks held rates steady in mid-December, smaller lenders remain the preferred option for maximising returns.

 

Small finance banks’ senior citizen FD rates

Small finance banks (SFBs) offer the best FD rates to senior citizens, with multiple institutions offering 7.75–8.10 per cent for specific tenure buckets.

 

Top SFB rates

• ESAF Small Finance Bank offers the highest senior citizen rate of 8.10 per cent for a 444-day tenure.

 

• Jana Small Finance Bank, Suryoday SFB, and Utkarsh SFB follow with peak rates of 8.00 per cent.

• Equitas SFB and Shivalik SFB also offer competitive peak yields of 7.80 per cent.

 

These high-yield options are particularly attractive for retirees seeking predictable income, although investors should consider the risk profile of smaller banks before opting for longer tenures. 

 

Private banks’ FD rates

Senior citizens looking for balance between yield and institutional stability may find favourable choices among private sector banks. 

Noteworthy private bank offers

• YES Bank: Up to 7.75 per cent for tenures of three to under five years.

• Bandhan Bank and RBL Bank: Up to 7.70 per cent.

• ICICI Bank, Kotak Mahindra Bank, and Axis Bank: From 7.10 and 7.35 per cent on select tenures.

 

Some private banks also provide additional incentives for super senior citizens (typically aged 80 and above). For instance, RBL Bank offers an additional 0.25 per cent across all tenures, while City Union Bank provides a 0.10 per cent premium for select periods.

Public-sector banks’ rates

Public sector banks continue to offer modest but steady FD returns. The highest rates in this segment hover around 7.10–7.20 per cent.

 

• Bank of India, Indian Overseas Bank, and Punjab & Sind Bank peak at around 7.20 per cent for specific schemes.

• State Bank of India offers a maximum of 7.10 per cent for its 444-day Amrit Vrishti deposit for senior citizens.

• Many PSUs provide additional interest, typically 0.10–0.30 per cent, for senior and super senior depositors, enhancing returns for longer tenures.

 

Foreign banks’ FD rates

Foreign banks remain at the bottom of the FD rate spectrum.

• Deutsche Bank offers up to 7.00 per cent,

• Standard Chartered peaks at 7.10 per cent,

• HSBC continues to offer modest rates of 6.00 per cent for senior citizens.

 

  Latest senior citizne FD rates in December  

Senior Citizen FD Table
Bank Name	Interest Rates (p.a.)						Additional rates offered to Super Senior Citizen* (over and above to senior citizen rates)
	Highest slab		1-year	3-year	5-year	10-year
	%	Tenure
SMALL FINANCE BANKS
AU Small Finance Bank	7.60	2 years 1 day to 3 years	6.85	7.60	7.25	7.25	---
Equitas Small Finance Bank	7.80	888 days	7.50	7.50	7.50	7.50	---
ESAF Small Finance Bank	8.10	444 days	5.25	6.50	6.25	6.25	---
Jana Small Finance Bank	8.00	Above 2 years to 3 years; 5 years	7.75	8.00	8.00	7.00	---
Shivalik Small Finance Bank	7.80	18 months to 24 months	6.50	7.50	7.00	6.75	---
slice Small Finance Bank	7.75	18 months 1 day to 18 months 2 days	6.50	7.50	7.25	6.75	---
Suryoday Small Finance Bank	8.00	5 years	7.45	7.45	8.00	7.45	---
Ujjivan Small Finance Bank	7.95	2 years	7.75	7.70	7.70	7.00	---
Utkarsh Small Finance Bank	8.00	2 years to 3 years	6.50	8.00	7.50	7.25	---
PRIVATE SECTOR BANKS
Axis Bank	7.35	5 years to 10 years	6.75	7.10	7.35	7.35	---
Bandhan Bank	7.70	2 years to less than 3 years	7.50	7.50	6.60	6.60	---
City Union Bank	7.00	365 days	7.00	6.90	6.50	6.50	0.10% on 365 days to 3 years tenure
CSB Bank	7.30	13 months	5.30	6.05	6.05	6.30	---
DBS Bank	7.10	376 days to 600 days	6.80	6.90	6.75	6.75	---
DCB Bank	7.70	37 months to 38 months	7.15	7.25	7.25	7.25	0.05% on tenures of 37 months to 38 months**
Federal Bank	7.20	36 months	6.75	7.20	7.00	7.00	---
HDFC Bank	7.10	18 months to less than 21 months	6.75	6.95	6.90	6.65	---
ICICI Bank	7.20	2 years 1 day to 5 years	6.75	7.20	7.20	7.10	---
IDFC FIRST Bank	7.50	450 days to 5 years	6.80	7.50	7.50	6.50	---
IndusInd Bank	7.50	1 year 6 months to less than 1 year 7 months	7.25	7.40	7.15	7.00	---
Jammu & Kashmir Bank	7.50	888 days	7.00	7.25	7.00	7.00	0.25% on all tenures
Karur Vysya Bank	7.20	400 days	6.95	6.95	6.95	6.65	---
Karnataka Bank	7.05	555 days	6.90	6.55	6.55	5.90	---
Kotak Mahindra Bank	7.20	391 days to less than 2 years	6.75	6.90	6.75	6.75