Year-end senior citizen fixed deposit rates at 6-8%: Top bank options

Small finance banks lead the market for retirees, with senior citizen fixed deposit rates peaking at over 8% across select tenures

Fixed deposits (FDs) continue to be a preferred savings option for senior citizens, amid volatile equity markets and uneven returns from other assets in 2025. For retirees who prioritise capital safety and predictable income, banks offer meaningful rate premiums over regular deposits. Data compiled by Paisabazaar.com shows that senior citizen FD rates at the end of December 2025 range from about 6 per cent to over 8 per cent per annum, depending on the bank and tenure.

 

Small finance banks

 

Small finance banks (SFBs) remain at the top of the rate table for senior citizens. According to Paisabazaar.com data, several SFBs are offering rates close to or above 8 per cent for specific tenures.

 

 

-ESAF Small Finance Bank offers up to 8.10 per cent for a 444-day tenure.

 

-Jana Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank offer rates of around 8.00 per cent on select tenures.

 

-Ujjivan Small Finance Bank provides up to 7.95 per cent for a two-year deposit.

 

Higher rates can improve interest income but depositors should remain mindful of concentration risk and stay within the Deposit Insurance and Credit Guarantee Corporation (DICGC) limit of Rs 5 lakh per bank. 

 

Private sector banks

 

Private-sector banks are offering relatively lower rates than SFBs, but still provide stability and wider branch networks. Paisabazaar.com data shows:

 

-YES Bank offers up to 7.75 per cent for senior citizens on three- to five-year tenures.

 

-RBL Bank and Bandhan Bank offer rates close to 7.70 per cent on medium-term deposits.

 

-Large banks, such as HDFC Bank, ICICI Bank and Axis Bank, offer rates in the 6.9–7.2 per cent range for longer tenures.

 

Some private banks also offer additional incentives for super senior citizens, typically those aged 70 or 80 and above.

 

Public sector banks

 

Public-sector banks (PSBs) continue to trail private and small finance banks on headline rates, but remain popular for their perceived safety. According to Paisabazaar.com:

 

-Bank of Baroda and Indian Bank offer senior citizen rates of around 7.10 per cent on special tenure schemes.

 

-State Bank of India provides up to 7.05 per cent for senior citizens on select long-term deposits.

 

-Several PSBs offer an extra 0.10–0.30 percentage points for super senior citizens.

Latest senior citizen 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	7.50	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	7.20	5 years to 10 years	6.75	6.95	7.20	7.20	---
Bandhan Bank	7.70	2 years to less than 3 years	7.50	7.50	6.60	6.60	---
City Union Bank	7.00	500 days	6.75	6.75	6.50	6.50	0.05% on 271 days to 3 years tenure; 0.10% on above 3 years to 10 years
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	7.65	Above 60 months to 61 months	7.15	7.25	7.25	7.25	0.05% on tenures of 37 months to 38 months & Above 60 months to 61 months **
Federal Bank	7.25	36 months	6.75	7.25	7.00	7.00	---
HDFC Bank	6.95	18 months to 3 years	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	7.15	7.10	7.10	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