FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks

There are still some banks who continue to offer up to 9.1% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for five year tenure and not exceeding Rs 3 crore.

Read below to know the list of banks offering FD interest rate up to 9.1%

Bank FD interest rate

FD rate up to 9.1%

Suryoday Small Finance Bank is offering 9.1% interest rate on FD of five year tenure.

FD rate up to 8.65%

Unity Small Finance Bank is offering 8.65% interest rate on FD for five year tenure.

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	8.25%
Jana Small Finance Bank	8.2%

Source: Paisabazaar.com as of May 21, 2025

FD rate up to 8.5%

NorthEast Small Finance Bank is offering up to 8.5% interest rate on FD for five year tenure.

FD rate up to 8.25%

Utkarsh Small Finance Bank is offering 8.25% interest rate on FD for five year tenure.

FD rate up to 8.2%

Jana Small Finance Bank is offering 8.2% interest rate on FD for five 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?

TDS is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax refund.

For instance, if a senior citizen’s income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax regime.

According to chartered accountant Jambukeswaran Jambukeswaran, founder, JJ Tax, "A senior citizen can submit Form 15H to prevent TDS deduction if his total income after all deductions claim and Section 87A rebate is below the taxable limit like Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax regime." Jambukeswaran told this to ET Wealth Online on the sidelines of JJ Tax's new app launch and new corporate identity Uniqey.

Despite the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations.