FD rates up to 8.50% for senior citizens on 5-year deposits; Check the list of banks

Fixed deposit (FD) is one of the popular investment avenues for senior citizens. For senior citizens comparing FDs, the interest rate is an important factor, but it should not be the only consideration. The FD tenure, premature withdrawal rules and minimum deposit requirements are some of the other key factors that senior citizens should check before investing in FDs. Here we take you through the list of banks offering up to 8.50% interest rate to senior citizens on a five-year FD.

Small finance banks offering highest interest rates to senior citizens on 5-year FD

Among small finance banks, Suryoday Small Finance Bank is offering the highest interest rate of 8.5% to senior citizens on a 5-year FD. Jana Small Finance Bank follows with an interest rate of 8%, while Ujjivan Small Finance Bank offers 7.7%. Equitas Small Finance Bank and Utkarsh Small Finance Bank are offering a 7.5% interest rate each.

Small Finance Bank	Interest Rate
Suryoday Small Finance Bank	8.50%
Jana Small Finance Bank	8.00%
Ujjivan Small Finance Bank	7.70%
Equitas Small Finance Bank	7.50%
Utkarsh Small Finance Bank	7.50%
AU Small Finance Bank	7.25%
slice Small Finance Bank	7.25%

Private sector banks offering highest interest rates to senior citizens on 5-year FD

Among private sector banks, DCB Bank offers the highest interest rate of 8% to senior citizens on the 5-year FD, followed by SBM Bank India and YES Bank that offer 7.5% each.

Axis Bank and Jammu & Kashmir Bank offer an interest rate of 7.25% each, while RBL Bank and Tamilnad Mercantile Bank offer a 7.2% rate apiece. IndusInd Bank offers 7.15%, while ICICI Bank offers a 7.1% interest rate to senior citizens on the 5-year FD.

Bank	Interest Rate
DCB Bank	8.00%
SBM Bank India	7.50%
YES Bank	7.50%
Axis Bank	7.25%
Jammu & Kashmir Bank	7.25%
RBL Bank	7.20%
Tamilnad Mercantile Bank	7.20%
IndusInd Bank	7.15%
ICICI Bank	7.10%

Public sector banks offering highest interest rates to senior citizens on 5-year FD

For senior citizens, State Bank of India offers an interest rate of 7.05%, followed by Bank of Baroda at 6.90% and Punjab National Bank at 6.85%. Bank of India and Canara Bank offer a 6.75% rate each, while Indian Overseas Bank offers a 6.60% interest rate to senior citizens on the 5-year FD.

Central Bank of India, Indian Bank and Union Bank of India offer an interest rate of 6.50% each.

Bank	Interest Rate
State Bank of India	7.05%
Bank of Baroda	6.90%
Punjab National Bank	6.85%
Bank of India	6.75%
Canara Bank	6.75%
Indian Overseas Bank	6.60%
Central Bank of India	6.50%
Indian Bank	6.50%
Union Bank of India	6.50%
Punjab & Sind Bank	6.45%
Bank of Maharashtra	5.50%

When is tax deducted at source (TDS) deducted from bank FD interest?

Banks are mandated to deduct TDS if interest on an FD for a senior citizen 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).

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.