FD rate up to 8.3% for senior citizens investing for three years; know the list of banks

Some banks continue to offer interest rates as high as 8.5% on fixed deposits (FDs) for senior citizens (aged 60 years and older). These rates apply to three-year terms with deposits up to Rs 3 crore.

Check out the list below to see which banks give senior citizens fixed deposit rates of up to 8.3%.

Bank FD interest rate for senior citizens

FD rate up to 8.3% for senior citizens

Jana Small Finance Bank is offering 8.3% interest on FDs with a three-year term for senior citizens.

FD rate up to 8% for senior citizens

Utkarsh Small Finance Bank is offering 8% interest on FDs with a three-year term for senior citizens.

Bank name	Interest rate
AU Small Finance Bank	7.90
Equitas Small Finance Bank	7.60
ESAF Small Finance Bank	6.50
Jana Small Finance Bank	8.30
Shivalik Small Finance Bank	7.75
slice Small Finance Bank	7.50
Suryoday Small Finance Bank	7.40
Ujjivan Small Finance Bank	7.75
Utkarsh Small Finance Bank	8.00

Source: paisabazaar.com as of September 23, 2026

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.

When is TDS deducted from bank FDs?

Banks are mandated to deduct tax deducted at source (TDS) if the interest from a fixed deposit (FD) crosses Rs 1 lakh in a specific bank. Remember, TDS isn’t an additional tax; you can get it back as a tax refund or offset it against your total tax liability when you file your income tax return (ITR). Plus, if you are eligible for a tax refund, you might also be eligible for interest on that refund.

For example, if a senior citizen has an income of Rs 11 lakh, they won’t have to pay income tax thanks to the Section 87A tax rebate under the new tax regime for FY 2025-26. The Section 87A tax rebate applies to income up to Rs 12 lakh under the new tax regime for FY 2025-26.

Moreover, a senior citizen can submit Form 15H (now renumbered to Form 121 under Income Tax Act, 2025) to avoid TDS deduction, if their total income, after claiming all tax deductions and the Section 87A rebate, is below the taxable limit, which is Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax regime.

Chartered Accountant (Dr.) Suresh Surana says that Form 15H (now renumbered as Form 121) is a self-declaration form that senior citizens (60 years & above) can submit to avoid TDS on income, provided their total tax liability is zero.

Surana says: “It applies based on the final tax liability after considering exemptions and rebates. Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no tax, making them eligible to submit Form 15H.”

Surana says that under the old tax regime, the exemption limit was Rs 3 lakh, which was enhanced to Rs 5 lakh for taxpayers aged 80 years or more, and the 87A rebate applied to income up to Rs 5 lakh, allowing Form 15H submission if the total taxable income does not exceed this threshold.

If income surpasses these limits, TDS will be deducted, and any excess tax can be claimed as a refund through ITR filing.

Even though no income tax is charged on an annual income below Rs 12 lakh, banks and other financial institutions still have to deduct TDS. This is because the law requires them to deduct TDS once the interest/income amount surpasses a certain limit -- Rs 1 lakh in case of senior citizens. Banks are not aware of individual tax liabilities and will deduct TDS whenever the annual interest exceeds Rs 1 lakh. Hence it’s better to submit Form 15H to let the banks know.