According to Paisabazaar, senior citizen FD interest rates currently range from 2.50% to 8.50% per annum, depending on the bank, tenure and scheme. Small finance banks are offering some of the highest rates, with several of them offering 8% or more on select tenures.
Here is a look at the highest FD rates available to senior citizens across major public sector banks, private sector banks and small finance banks. Rates mentioned below are as of August 26, 2026, and apply to deposits below ₹3 crore.
Public Sector Banks: Up to 7.45%
Among major public sector banks, Bank of India offers the highest rate of 7.45% per annum for senior citizens on select tenures. Bank of Baroda and Central Bank of India offer rates of up to 7.25%, while Punjab & Sind Bank offers up to 7.35%.
Other major lenders, including SBI, Canara Bank, Punjab National Bank and Union Bank of India, offer senior citizen rates of around 7% or above on select tenures.
| Bank | 1 Year | 3 Years | 5 Years |
| Bank of India | 7.45% | 7.00% | 7.45% |
| Bank of Baroda | 7.25% | 6.75% | 6.75% |
| Central Bank of India | 7.25% | 6.60% | 6.50% |
| Punjab & Sind Bank | 7.35% | 6.35% | 6.35% |
| Bank of Maharashtra | 7.15% | 6.90% | 5.75% |
| Indian Bank | 7.15% | 6.60% | 6.55% |
| Canara Bank | 7.10% | 6.75% | 6.75% |
| Indian Overseas Bank | 7.10% | 7.00% | 6.60% |
| Punjab National Bank | 7.10% | 6.75% | 6.80% |
| State Bank of India | 7.05% | 6.75% | 6.80% |
| Union Bank of India | 7.05% | 6.70% | 6.60% |
| UCO Bank | 6.95% | 6.35% | 6.50% |
Private Banks: Up to 8.15%
Senior citizens can find attractive FD returns among private lenders, with SBM Bank leading the segment at 8.15% per annum on certain tenures. DCB Bank follows with a maximum rate of 8%, while Bandhan Bank offers up to 7.95%. IndusInd Bank and YES Bank also offer rates of up to 7.75% on selected deposits.
| Bank | 1 Year | 3 Years | 5 Years |
| SBM Bank | 8.15% | 7.60% | 8.15% |
| DCB Bank | 8.00% | 7.15% | 7.25% |
| Bandhan Bank | 7.95% | 7.50% | 7.75% |
| Dhanlaxmi Bank | 7.75% | 6.75% | 7.00% |
| IndusInd Bank | 7.75% | 7.25% | 7.75% |
| YES Bank | 7.75% | 7.15% | 7.75% |
| RBL Bank | 7.70% | 7.50% | 7.70% |
| Tamilnad Mercantile Bank | 7.70% | 7.30% | 7.20% |
| J&K Bank | 7.55% | 7.05% | 7.30% |
| City Union Bank | 7.50% | 6.90% | 6.75% |
| IDFC FIRST Bank | 7.50% | 6.75% | 7.50% |
| CSB Bank | 7.35% | 5.25% | 6.00% |
| DBS Bank | 7.35% | 6.80% | 6.90% |
| Kotak Mahindra Bank | 7.30% | 7.00% | 6.90% |
| South Indian Bank | 7.30% | 6.85% | 6.70% |
| Axis Bank | 7.25% | 6.75% | 7.00% |
| Federal Bank | 7.20% | 6.75% | 7.00% |
| Karur Vysya Bank | 7.20% | 6.95% | 6.95% |
| HDFC Bank | 7.10% | 6.75% | 6.95% |
| ICICI Bank | 7.10% | 6.75% | 6.95% |
| Nainital Bank | 7.10% | 6.25% | 6.75% |
| IDBI Bank | 7.00% | 6.70% | 6.85% |
Small Finance Banks: Up to 8.50%
For those looking for higher FD returns, small finance banks currently offer some of the most competitive rates for senior citizens. Equitas Small Finance Bank, ESAF Small Finance Bank, Shivalik Small Finance Bank and Suryoday Small Finance Bank offer up to 8.50% per annum on specific tenures. Jana and Ujjivan Small Finance Bank offer up to 8.30%, while Utkarsh Small Finance Bank offers a maximum of 8.25%.
| Bank | 1 Year | 3 Years | 5 Years |
| Equitas Small Finance Bank | 8.50% | 7.60% | 7.60% |
| ESAF Small Finance Bank | 8.50% | 6.50% | 6.50% |
| Shivalik Small Finance Bank | 8.50% | 6.50% | 8.00% |
| Suryoday Small Finance Bank | 8.50% | 7.40% | 7.40% |
| Jana Small Finance Bank | 8.30% | 7.50% | 8.30% |
| Ujjivan Small Finance Bank | 8.30% | 7.75% | 7.75% |
| Utkarsh Small Finance Bank | 8.25% | 6.50% | 8.00% |
| Unity Small Finance Bank | 8.00% | 8.00% | 7.25% |
| AU Small Finance Bank | 7.90% | 6.85% | 7.90% |
| Capital Small Finance Bank | 7.60% | 7.60% | 7.40% |
| Fincare Small Finance Bank | 7.60% | 6.85% | 7.60% |
Which banks offer the highest rates?
Based on the rates provided, small finance banks lead the list, with four banks offering senior citizens rates of up to 8.50%. Among private sector banks, SBM Bank offers up to 8.15%, while Bank of India leads the listed public sector banks at 7.45%.
Senior citizens should also check the specific tenure and FD scheme before investing, as the highest rate may apply only to selected periods or special deposit schemes. Rates can also change, so the applicable rate should be confirmed with the bank before booking an FD.
Why Fixed Deposits Matter After 60
For many people, financial stability becomes more important after retirement, when regular income may be limited. Fixed deposits (FDs) can provide a relatively stable source of returns while keeping savings in a low-risk investment option. Senior citizens may also receive higher interest rates than regular depositors on eligible FDs.
FDs can help retirees manage regular expenses such as household costs, medical bills and other financial needs. For those who prioritise the safety of their savings over higher but riskier returns, bank FDs can be a suitable option.
