Up to Rs 5.52 lakh interest on Rs 10 lakh investment: 5-year senior citizen FDs offering up to 8.50% rates

Many senior citizens invest in fixed deposits (FD) as they need a stable income in their old age to fund their daily expenses. So, a lot of them look for a deposit that offers them the highest interest rate. A high interest rate helps them earn a high income without exposing money to the risks of the market. FDs have tenures of 7 days to 10 years and the return depends on the interest rate locked in at the time of investment.

For example, a senior citizen who invests Rs 10 lakh in a 5-year FD at a 8.5% interest rate will get approximately Rs 5.22 lakh just in interest on maturity.. The maturity amount, thus, would be approximately Rs 15.22 lakh.

Small finance banks offer high FD rates to senior citizens

Small finance banks offer some of the highest FD interest rates to senior citizens among all types of banks.


DCB Bank, SBM Bank India and YES Bank are among the private sector banks in the list offering the highest rates to senior citizens on the 5-year FD. Among public sector banks, State Bank of India (SBI) is offering a 7.05% rate on its 5-year senior citizen FD.

Senior citizens should compare the bank's maturity amount and deposit terms before making an FD investment. Here, we take you through the highest 5-year senior citizen FD interest rates from small finance banks and public and private sector banks. Also see the maturity amounts senior citizens will get on Rs 10 lakh investment in these FDs.

Highest 5-year senior citizen FD interest rates from small finance banks

Senior citizens can earn higher interest incomes from small finance banks. These are the rates of various banks.

Small Finance Bank	Interest Rate (%)	Estimated Interest Earned
Suryoday Small Finance Bank	8.50%	₹ 5,22,000
Jana Small Finance Bank	8.00%	₹ 4,86,000
Ujjivan Small Finance Bank	7.70%	₹ 4,68,000
Equitas Small Finance Bank	7.50%	₹ 4,52,000
slice Small Finance Bank	7.50%	₹ 4,52,000
Utkarsh Small Finance Bank	7.50%	₹ 4,52,000

Highest 5-year senior citizen FD interest rates from private sector banks

Among private sector banks, DCB Bank offers an interest rate of 8% on the 5-year senior citizen FD, followed by SBM Bank India and YES Bank at 7.5% each.

Private Sector Bank	Interest Rate (%)	Interest Income on Rs 10 lakh investment (₹)
DCB Bank	8.00	4,86,000
SBM Bank India	7.50	4,52,000
YES Bank	7.50	4,52,000
Axis Bank	7.25	4,35,000
Jammu & Kashmir Bank	7.25	4,35,000
ICICI Bank	7.20	4,32,000
RBL Bank	7.20	4,32,000
Tamilnad Mercantile Bank	7.20	4,32,000
South Indian Bank	6.20	3,61,000

Highest 5-year senior citizen FD interest rates from public sector banks

Senior citizens who prefer public sector banks can compare the rates offered by SBI and other government-owned banks. SBI offers the highest rate of 7.05% on the 5-year senior citizen FD followed by Bank of Baroda at 6.9%.

Public Sector Bank	Interest Rate (%)	Interest Income (₹)
State Bank of India	7.05	4,21,000
Bank of Baroda	6.90	4,12,000
Punjab National Bank	6.85	4,09,000
Bank of India	6.75	4,03,000
Canara Bank	6.75	4,03,000
Indian Overseas Bank	6.60	3,92,000

FD interest rate data: Paisabazaar as on October 28, 2026