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 Name | FD Tenure | Senior Citizen Rate |
|---|---|---|
| Suryoday Small Finance Bank | 5 years | 9.60% |
| Unity Small Finance Bank | 1001 days | 9.50% |
| Jana Small Finance Bank | 1095 days | 9.00% |
| Ujjivan Small Finance Bank | 12 months / 560 days | 8.85% |
| AU Small Finance Bank | 24 – 36 months | 8.50% |
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.