Highest senior citizen FD interest rates: Get up to 8.50% from these small finance, private and PSU banks

If you are a senior citizen looking to put your savings in a fixed deposit (FD), the interest rate is likely to be one of the first things you check. Here is a look at the highest FD interest rates currently offered to senior citizens by public and private sector banks and small finance banks, as per Paisabazaar data as on September 9, 2026.

Equitas Small Finance Bank offers the highest interest rate of 8.50% per annum on an FD of 3 years and 1 day under its Maxima FD scheme for senior citizens.

ESAF Small Finance Bank also offers a 8.50% rate on its 800-day deposit, while Suryoday Small Finance Bank too offers 8.50% rate on the 5-year FD scheme to senior citizens.

Jana Small Finance Bank offers a 8.30% rate on deposits of above 2 years to 3 years. Ujjivan Small Finance Bank offers a 8.30% rate on tenures of 3 years and 1 day to 3 years and 6 months. Shivalik Small Finance Bank offers a 8.25% rate on the FD of 23 months and 1 day to 27 months to senior citizens.

For senior citizens, DCB Bank offers a 8.00% rate on select tenures of 24–25 months, 34–35 months and 60–61 months. Bandhan Bank offers a 7.95% rate on an FD of 2 years to less than 3 years.

SBM Bank India offers a 8.15% rate on FDs of above 18 months to less than 2 years and 3 days. IndusInd Bank offers a 7.75% rate on tenures of 2 years to 3 years. YES Bank offers a 7.75% rate on 18 months and 1 day to less than 24 months FDs and on select longer tenures. RBL Bank offers a 7.70% rate on tenures of 18 months to 3 years to senior citizens.

Bank of India is offering its highest rate of 7.45% to senior citizens on a tenure of 3 years. Punjab & Sind Bank offers a 7.35% rate on the 666-day FD. Bank of Baroda offers a 7.25% rate on the 555-day tenure under its Golden Goal Deposit Scheme. Central Bank of India offers a 7.25% rate on its FD of 444 days. Bank of Maharashtra offers a 7.15% rate on 400 days of FD, while Indian Bank offers a 7.15% rate on the 555-day tenure to senior citizens.

For bank deposits, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides an insurance cover of up to Rs 5 lakh per depositor per bank, including principal and interest, subject to the applicable rules. This is particularly relevant when you are depositing a large amount in FDs.

Banks are mandated to deduct tax deducted at source (TDS) if the interest from a fixed deposit (FD) for a senior citizen crosses Rs 1 lakh in a specific bank. Remember, the 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).