KEY HIGHLIGHTS
- Senior citizens can secure up to 8.15% FD interest in 2025.
- RBI kept repo rate unchanged, but banks may lower FD rates soon.
- Experts suggest locking rates now; DICGC insures deposits up to ₹5 lakh.
If you’re a senior citizen depending on a safe monthly income, this is one of those moments you don’t want to miss.
Banks and small finance banks are still offering 8%+ interest on fixed deposits, but these rates may cool down soon.
Before we go further, here’s a quick breakdown.
Top Senior Citizen FD Offers (2025)
| Bank / SFB | Highest Interest Rate | Best Tenure | Notes |
|---|---|---|---|
| Utkarsh SFB | 8.15% | 2–3 years | One of the highest secured FD rates right now |
| Suryoday SFB | 8.4% (General), higher for seniors | 5 years | Attractive long-term option |
| Jana SFB | 8% | 2–3 years | Stable pick for mid-term FDs |
| slice SFB | 7.75% | 18 months+ | Shorter tenure option |
| Shivalik SFB | 7.5% | 3 years | Moderate but steady rate |
| Private Banks | Up to ~7.75% | 3 years | Lower compared to SFBs |
| Public Banks | Up to ~7.10% | 3 years | Safer, but returns lower |
| DICGC Cover | Up to ₹5 lakh | All banks | Deposit protection |
Senior citizens always get a little extra love from banks — typically 0.25% to 0.50% higher interest than the general public. That bonus makes a big difference when you’re planning a predictable retirement income.
But here’s the catch:
RBI has held the repo rate at 5.5%, yet banks can still cut FD rates anytime because previous rate cuts haven’t fully passed through.
So locking into a multi-year FD right now? Totally paisa-vasool.
RBI’s Latest Update: Repo Rate Unchanged, But FD Rates May Cool
During the October 1, 2025, MPC meeting, RBI decided to keep the repo rate steady at 5.5%.
But don’t assume FD rates will stay high.
The central bank has already cut repo rates by 100 bps this year, so banks could reduce deposit rates gradually. That’s why financial planners are saying:
Senior citizens should freeze these high FD rates before the slide begins.
Highest FD Rates for Senior Citizens (3-Year Tenure)
Utkarsh Small Finance Bank — 8.15%
Currently, the top pick in India for seniors on a 3-year FD. Solid return for medium-term goals.
slice Small Finance Bank — 7.75%
Applicable on FDs from 18 months and 1 day to 3 years.
Jana Small Finance Bank — 8%
Available on 2–3 year tenures. Works well for stable income planning.
Shivalik Small Finance Bank — 7.50%
A decent rate for a standard 3-year deposit.
Important: Safety Check Before You Invest
Deposits in small finance banks are insured up to ₹5 lakh under DICGC.
Experts say it’s smarter to keep your investment within this insured limit, especially in SFBs where risk may be slightly higher compared to big scheduled commercial banks.
Highest FD Rates in Small Finance Banks (All Tenures)
| Small Finance Bank | Interest Rate (p.a.) | Tenure |
|---|---|---|
| AU SFB | 7.6% | 2 years 1 day to 3 years |
| Equitas SFB | 7.9% | 888 days |
| ESAF SFB | 8.1% | 444 days |
| Jana SFB | 8% | 2–3 years; 5 years |
| Shivalik SFB | 7.8% | 18–24 months |
| slice SFB | 7.75% | 18 months 1 day to 18 months 2 days |
| Suryoday SFB | 8.4% | 5 years |
| Ujjivan SFB | 7.95% | 2 years |
| Utkarsh SFB | 8.15% | 2–3 years |
FD Rates in Private Sector Banks (3-Year Tenure)
| Bank | 3-Year Rate (Senior Citizens) | Additional Super-Senior Benefit |
|---|---|---|
| Axis Bank | 7.10% | — |
| Bandhan Bank | 7.50% | — |
| City Union Bank | 6.90% | +0.10% |
| DCB Bank | 7.25% | +0.25% |
| ICICI Bank | 7.10% | — |
| IndusInd Bank | 7.40% | — |
| RBL Bank | 7.70% | +0.25% |
| YES Bank | 7.75% | — |
| (Rates as of 30 Sept 2025) |
FD Rates in Public Sector Banks (3-Year Tenure)
| Bank | 3-Year Rate (Senior Citizens) | Super Senior Bonus |
|---|---|---|
| SBI | 6.80% | +0.10% |
| Bank of Baroda | 7.00% | +0.10% |
| PNB | 6.90% | +0.30% |
| Union Bank | 7.10% | +0.25% |
| Indian Bank | 6.75% | +0.25% |
| Indian Overseas Bank | 6.70% | +0.25% |
So, Should You Lock Your FD Rate Now?
If you’re a senior citizen depending on a fixed and stress-free income, this is probably the best window to capture high rates.
Repo rate isn’t rising anytime soon, but FD rates can fall from here.
A smart strategy many seniors follow:
- Split FDs across multiple banks
- Keep amounts within the DICGC insurance limit
- Mix short and medium tenures for flexibility
If you play it right, your interest earnings stay steady even if market rates drop.
Frequently Asked Questions
1. Are small finance bank FDs safe for senior citizens?
Yes, up to ₹5 lakh is insured by DICGC. For extra safety, avoid depositing beyond the insured amount in any single SFB.
2. Will FD interest rates fall in 2025?
They may. Since the RBI cut repo rates earlier, banks could reduce FD rates gradually in the coming months.
3. Which bank currently offers the highest FD rate for seniors?
For 3 years, Utkarsh Small Finance Bank has offered up to 8.15%, one of the best in India right now.
