FD rate up to 8% for senior citizens investing for five years; Know full list of banks

Some banks are still offering interest rates reaching up to 8% on fixed deposits (FDs) for senior citizens (60 years and older) for a five- year term, with a cap of Rs 3 crore.

Check out the list below to see which banks offer FD interest rates up to 8% for senior citizens.

Bank FD interest rate for senior citizens

FD rate up to 8%

Suryoday Small Finance Bank is providing an 8% interest rate on fixed deposits with a five-year tenure for senior citizens.

FD rates up to 7.77% for senior citizens

Jana Small Finance Bank is offering 7.77% interest rate on FD with five-year term for senior citizens.

AU Small Finance Bank	7.25
Equitas Small Finance Bank	7.50
ESAF Small Finance Bank	6.25
Jana Small Finance Bank	7.77
Shivalik Small Finance Bank	6.75
slice Small Finance Bank	7.25
Suryoday Small Finance Bank	8.00
Ujjivan Small Finance Bank	7.70
Utkarsh Small Finance Bank	7.50

Source: Paisabazaar.com as of January 2, 2026

FD rates up to 7.7% for senior citizens

Ujjivan Small Finance Bank is offering a 7.7% interest on FDs with a five-year term for 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.

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) crosses Rs 1 lakh in a specific bank. Since 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 of 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 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.