FD rate up to 8.50%: List of banks offering above 8% to senior citizens

At a time when most banks are lowering their fixed deposit (FD) interest rates, there are still banks offering higher interest rates on FDs especially for senior citizens investors. Major commercial banks have slashed FD rates below the 8% per annum, however, several small finance banks continue to offer FD interest rates of 8% and above exclusively for senior citizens. These special rates are available for select tenures and offer a safe investment avenue with assured returns.

ET Wealth online has list out the names of the banks that are offering FD interest rate up to 8.50% to the senior citizens.

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Highest bank FD interest rate for senior citizens

Utkarsh Small Finance Bank is offering 8.25% interest rate on FD of 2 years (730 Days) upto 3 years (1095 Days).

Jana Small Finance Bank is offering 8.25% interest rate on FD for tenure between 1year to 3 years.

Unity Small Finance Bank is offering up to 8.25% interest rate on FD tenure of 1001 days.

Slice Small Finance Bank is offering 8.50% interest rate on FD for 18 months 1 Day to 18 months 2 day tenure for senior citizens.

Bank Name	Interest Rates (p.a.)
	Highest slab
	%	Tenure
SMALL FINANCE BANKS
AU Small Finance Bank	7.6	2 years 1 day to 3 years
Equitas Small Finance Bank	8.2	888 days
ESAF Small Finance Bank	8.1	444 days
Jana Small Finance Bank	8.25	Above 1 year to 3 years
slice Small Finance Bank	8.5	18 months 1 day to 18 months 2 days
Suryoday Small Finance Bank	8.4	5 years
Ujjivan Small Finance Bank	8.1	2 years
Unity Small Finance Bank	8.25	1001 days
Utkarsh Small Finance Bank	8.5	2 years to 3 years

Source: Paisabazaar data. Rates as on July 22, 2025 Just make sure highest rate is above and lowest of 8% above at end.

Are Small Finance Banks covered under DICGC?

Many depsoitors are hesitant to invest in fixed deposits because they are not sure if the FD deposits are insured. According to current rules, deposits under small finance banks are insured up to Rs 5 lakhs just like private and public sector banks under Deposit Insurance and Credit Guarantee Corporation DICGC, a subsidiary of the RBI.

How safe are Small Finance Banks for FD investments?

According to the AU Small Finance Bank website, “Like all banks in India, the RBI governs and monitors SFBs. As a result, all regulations associated with banking, such as Statutory Liquidity Ratio Requirements and Cash Reserve Ratio Requirements also apply to them. Further, the RBI lays out guidelines or rules like Eligibility Criteria and Mandatory Promoter Contribution for SFBs.”

Current TDS rules on FD investment

From April 1, 2025, the TDS rules on FD investments applicable for senior citizens are revised. According to latest laws, tax on FD investments will be deducted if the interest income earned by the senior citizen exceeds Rs 1 lakh in the financial year. In case of general citizens, tax on FD interest will be deducted if the interest earned by general public exceeds Rs 50,000 in a financial year.