FD rate up to 8.4% for senior citizens investing for five years; Know the full list of banks

A few banks are still offering interest rates as high as 8.4% on fixed deposits (FDs) for senior citizens (aged 60 years and above) for a five- year term with a maximum limit of Rs 3 crore.

Check out the list below to see which banks offer FD interest rates up to 8.4% for senior citizens.

Bank FD interest rate for senior citizens

FD rate up to 8.4%

Suryoday Small Finance Bank provides an 8.4% interest rate on fixed deposits with a five-year tenure for senior citizens.

FD rates up to 8% for senior citizens

Jana Small Finance Bank is offering 8% interest rate on FD with five-year term for senior citizens.

Bank Name	Interest rate
Suryoday Small Finance Bank	8.4%
Jana Small Finance Bank	8%
Utkarsh Small Finance Bank	7.75%

Source: Paisabazaar.com as of September 24, 2025

FD rates up to 7.75%

Utkarsh Small Finance Bank is offering up to 7.75% interest rate on FD for a three-year tenure.

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 required to deduct tax deducted at source (TDS) if the interest from a fixed deposit (FD) goes over Rs 1 lakh in a specific bank. Remember, TDS isn’t an additional tax; you can get it back as 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 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.

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