These 5 Banks Are Offering Over 8.50% FD Interest to Senior Citizens in 2025 – Full List & Benefits

Worried about fluctuating markets? Fixed deposits might just bring you some peace of mind—especially if you’re a senior citizen. Unlike shares or mutual funds, FDs offer guaranteed returns. And here’s some good news: a few select banks are now offering interest rates above 8.50% exclusively for senior citizens.

Why Do Senior Citizens Get Higher FD Rates?

Banks in India generally offer 0.50% extra interest on fixed deposits to senior citizens compared to regular customers. This small difference makes a big impact over time, especially for retirees depending on interest income. And in 2025, some small finance banks are offering even higher rates—going up to 9.60%.

Top 5 Banks Giving 8.50% or More FD Interest to Senior Citizens

Bank NameFD TenureSenior Citizen Rate
Suryoday Small Finance Bank5 years9.60%
Unity Small Finance Bank1001 days9.50%
Jana Small Finance Bank1095 days9.00%
Ujjivan Small Finance Bank12 months / 560 days8.85%
AU Small Finance Bank24 – 36 months8.50%

1. Suryoday Small Finance Bank – 9.60% for 5 Year

Suryoday offers one of the highest FD interest rates in India for senior citizens right now. If you lock in your money for 5 years, you can earn 9.60% annual interest—a great option for those looking at long-term, secure income.

2. Unity Small Finance Bank – 9.50% for 1001 Days

With Unity Bank, senior citizens can earn 9.50% interest by investing in a Fixed Deposit for 1001 days. It’s a popular choice for people looking to park savings for around 2.5–3 years with strong returns.

3. Jana Small Finance Bank – 9% for 1095 Days

Jana Bank offers 9% interest on a deposit held for three years (1095 days). For many senior citizens, this duration fits well with medium-term financial planning.

4. Ujjivan Small Finance Bank – 8.85% for 560 Days

Ujjivan provides a rate of 8.85% on FDs with flexible tenure choices like 12 months or 560 days. This is ideal if you’re not ready to commit for several years but still want better-than-average returns.

5. AU Small Finance Bank – 8.50% for 24–36 Months

AU Bank offers a fixed deposit scheme with 8.50% interest for senior citizens with tenure ranging between 2 to 3 years. It’s a solid, low-risk option if you’re planning around upcoming life events or medical expenses.

Who Should Consider These High-Interest FDs?

These FDs are ideal if you:

  • Are a senior citizen above the age of 60
  • Prefer safe, fixed income over volatile returns
  • Want to beat inflation while keeping your principal secure
  • Are planning for regular interest payouts or reinvestment

FAQs: Senior Citizen FD Rates 2025

Q: Are these FDs safe?
Yes, but deposits are insured only up to ₹5 lakh under DICGC. It’s best to split large amounts across banks.

Q: Can I open these FDs online?
Most small finance banks now offer online FD booking through their apps or websites.

Q: Is the interest payout monthly or at maturity?
You can usually choose between monthly interest or lump-sum payout at maturity.

Q: Is form 15H required?
Yes, submit Form 15H to avoid TDS if your total income is below the taxable limit.

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