FD interest rate up to 9.1% for senior citizens investing for five years; Check the full list of banks here

There are some banks who continue to offer up to 9.1% interest rate on FDs worth less than Rs 3 crore for 5 years tenure for senior citizens. Some banks have already started reducing interest rates after the RBI reduced repo rates by 25 basis points on February 7, 2025.

Read below to find out the entire list of banks who are offering up to 9.1% interest on FDs worth less than Rs 3 crore to senior citizens.

Latest Bank FD rate for senior citizens

Bank offering 9.1% interest on FD

Suryoday Small Finance Bank is offering a 9.1% interest rate to senior citizens on its FDs maturing in five years.

Bank offering 8.65% interest on FD
Unity Small Finance Bank is offering a 8.65% interest rate to senior citizens on its FDs maturing in five years.

Bank offering 8.5% interest on FD
NorthEast Small Finance Bank is offering a 8.5% interest rate to senior citizens on its FDs maturing in five years.

Bank offering 8.35% interest on FD
Utkarsh Small Finance Bank is offering a 8.35% interest rate to senior citizens on its FDs maturing in five years.

Bank name	Interest rate
Suryoday Small Finance Bank	9.1%
Unity Small Finance Bank	8.65%
NorthEast Small Finance Bank	8.5%
Utkarsh Small Finance Bank	8.35%

Source: paisabazaar as on February 12, 2025

Bank offering 8.2% interest on FD
Jana Small Finance Bank is offering a 8.2% interest rate to senior citizens on its FDs maturing in five years.

Five year FDs qualify for tax savings under old tax regime

For senior citizens opting to file income tax return (ITR) using the old tax regime, investing in five year tenure FDs makes sense. This is because these FDs are eligible for tax deduction under section 80C. However, for those who opt for the new tax regime, this deduction is not applicable. Hence the decision to invest in five year tenure FD is both for tax savings and investment purposes. Senior citizens need to take a judgemental call which situation applies to them and then accordingly decide.

Senior citizens can get a tax deduction of up to Rs 1.5 lakh under Section 80C. They can also claim a deduction of up to Rs 50,000 each financial year from their gross total income, under Section 80TTB. This tax deduction will be applicable on interest earned on tax-saving FDs as well.

There is a difference between tax deduction and income tax payable. In these FDs (5 year tenure) senior citizens get a tax deduction, but the maturity amount is subject to income tax as per the slab rates applicable to the taxpayer. The interest on FD is taxable as per the tax bracket of the investors, except for certain exemptions given to senior citizens.

Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen circumstances.