Highest FD rates for senior citizen in 2026: PSU vs private vs small finance banks with best fixed deposit rates on 3-year tenure

Fixed deposits (FDs) continue to be one of the most preferred investment options for senior citizens who are looking for stable returns along with the safety of capital. Banks offer different durations of fixed deposits, from which you can pick one that suits your needs. In this write-up, we compare the highest interest rates on the 3-year senior citizen FD offered by public sector, private sector and small finance banks (SFBs).

Senior citizen FD rates (3-year tenure): Small finance banks

Among small finance banks, Jana Small Finance Bank and Utkarsh Small Finance Bank are offering the highest interest rate of 8% each on their three-year fixed deposit scheme to senior citizens. These are followed by Ujjivan Small Finance Bank, which is offering 7.70%, while AU Small Finance Bank provides 7.60% for the same tenure.

Also read: SCSS interest rate 2026: Has Senior Citizen Savings Scheme interest rate changed for April-June quarter?

Highest 3-year Senior Citizen FD interest rates (small finance banks)

• Jana Small Finance Bank — 8.00%
• Utkarsh Small Finance Bank — 8.00%
• Ujjivan Small Finance Bank — 7.70%
• AU Small Finance Bank — 7.60%
• Equitas Small Finance Bank — 7.50%
• slice Small Finance Bank — 7.50%
• Suryoday Small Finance Bank — 7.40%
• Shivalik Small Finance Bank — 7.25%
• ESAF Small Finance Bank — 6.50%

Senior citizen FD rates (3-year tenure): Private sector banks

Among private sector banks, Bandhan Bank and YES Bank are offering the highest interest rate of 7.75% each on a three-year fixed deposit to senior citizens.

Highest 3-year Senior Citizen FD interest rates (private sector banks)

• Bandhan Bank — 7.75%
• YES Bank — 7.75%
• RBL Bank — 7.70%
• SBM Bank India — 7.60%
• IDFC FIRST Bank — 7.50%
• IndusInd Bank — 7.40%
• DCB Bank — 7.25%
• Federal Bank — 7.25%
• Tamilnad Mercantile Bank — 7.20%
• Jammu & Kashmir Bank — 7.15%
• Axis Bank — 6.95%
• HDFC Bank — 6.95%
• ICICI Bank — 6.95%
• DBS Bank — 6.90%
• Kotak Mahindra Bank — 6.90%
• IDBI Bank — 6.85%
• City Union Bank — 6.75%
• South Indian Bank — 6.70%
• Karnataka Bank — 6.55%
• CSB Bank — 5.90%

Public sector banks: Senior citizen FD rates (3-year tenure)

Among public sector banks, Bank of India is offering the highest interest rate of 7.00% on a three-year fixed deposit to senior citizens. This is followed by Punjab National Bank and State Bank of India, both offering 6.80% each. Several other major lenders, including Bank of Baroda, Canara Bank and Union Bank of India are offering 6.75% rate each, providing stable returns backed by government-owned institutions. Overall, while PSU bank rates are slightly lower than some private sector and small finance banks, they continue to attract senior citizens due to their strong safety perception and reliability.

Highest 3-year Senior Citizen FD interest rates (PSU banks)

• Bank of India — 7.00%
• Punjab National Bank — 6.80%
• State Bank of India — 6.80%
• Bank of Baroda — 6.75%
• Canara Bank — 6.75%
• Union Bank of India — 6.75%
• Indian Overseas Bank — 6.60%
• Indian Bank — 6.55%
• Central Bank of India — 6.50%
• Punjab & Sind Bank — 6.35%
• Bank of Maharashtra — 5.75%