Best Senior Citizen FD Rates: These banks are offering the highest interest rates on senior citizen FDs, a great opportunity to earn on your savings.
Best FD Rates: If you are a senior citizen and want to invest your savings in a 5-year FD scheme and earn good returns with safe investment, you can take an investment decision by looking at the interest rates offered by banks on deposits.
Best Senior Citizen FD Interest Rate: Despite the changing economic environment and frequent fluctuations in interest rates, fixed deposits (FDs) remain the most reliable and attractive investment option for senior citizens in India. While the country’s central bank, the RBI, is maintaining a stable repo rate, many small finance banks and private banks are offering interest rates of up to 8.10% on 5-year FDs to attract senior citizens. If you are a senior citizen and want to secure a good return with a 5-year FD scheme, you can make an investment decision by looking at the interest rates offered by banks on deposits here.
These 5 banks are offering 5-year senior citizen FDs.
Government Banks
Bank Name – Annual Interest Rate (%)
State Bank of India – 7.05
Bank of Baroda – 7.00
Union Bank of India – 6.90
Central Bank of India – 6.75
Punjab National Bank – 6.75
Private Banks
Bank Name – Annual Interest Rate (%)
SBM Bank – 7.50
YES Bank – 7.50
DCB Bank – 7.25
RBL Bank – 7.20
Axis Bank – 7.10
Small Finance Banks
Bank Name – Annual Interest Rate (%)
Suryoday Small Finance Bank – 8.10
Jana Small Finance Bank – 8.00
Utkarsh Small Finance Bank – 7.75
Ujjivan Small Finance Bank – 7.70
Fincare Small Finance Bank – 7.25
Where is the highest interest rate available?
Among public sector banks, State Bank of India (SBI) is offering 7.05% interest on 5-year FDs for senior citizens, the highest among public sector banks. Among private banks, both SBM Bank and Yes Bank are offering 7.5% interest. The most attractive rates are coming from small finance banks. Suryoday Small Finance Bank is offering 8.10% interest on 5-year FDs, currently the highest among all banks.
RBI Policy and the Future of Interest Rates
The current trend in FD rates is directly linked to the Reserve Bank of India’s (RBI) monetary policy. In its recent Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.5%. Following the central bank’s decision, most banks have not made any changes to their fixed deposit (FD) interest rates. Keeping the repo rate stable at the current level makes it unlikely that there will be a major cut in deposit rates in the near future.
Impact of Declining Rates
It’s worth noting that the RBI has reduced the repo rate three times so far in 2025, totaling 100 basis points. A decline in the repo rate means it becomes cheaper for banks to borrow from the Reserve Bank, leading them to offer lower interest rates on fixed deposits to ordinary customers. This is why many banks have gradually reduced their fixed deposit rates during this year.
Keep these things in mind when investing in small finance banks:
High interest rates may be tempting, but senior citizens should prioritize investment safety. Under the RBI’s Deposit Insurance Credit Guarantee Corporation (DICGC), only deposits up to ₹5 lakh per depositor are insured in each bank. Since the business model of small finance banks can be slightly riskier than that of larger banks, senior citizens are advised to keep their deposits within the DICGC limit of ₹5 lakh. This ensures the safety of your principal, even if the bank faces a financial crisis.
(Note: This list of FD interest rates is for your information only. Banks periodically revise their interest rates. Therefore, before investing in any of the above-mentioned bank FD schemes, please understand the interest rates and terms and conditions.)
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