Over 9% FD interest rates for senior citizens: Check these 7 banks

Senior citizens often prefer fixed deposits (FDs) over other investment options, thanks to their fixed returns, liquidity options, and safety. A few Small Finance Banks (SFBs) are still offering more than 9% interest rates to senior citizens. Do keep in mind that small finance banks are also regulated by the Reserve Bank of India (RBI). Deposits opened with small finance banks are protected by the deposit insurance program to the tune of Rs 5 lakh. However, it includes both the principal and interest amounts.

This bank offers up to 9.15% FD interest rates

Here are the seven banks that offer 9% or more to senior citizens on FDs below Rs 2 crore


1. Unity Small Finance Bank
Unity Small Finance Bank offers an interest rate of 9.50% for FDs maturing in 1001 days.As per the bank website, for premature withdrawal of fixed deposits and recurring deposits, a premature penalty of 1.00% will be charged to the rate applicable for the period the deposit."

2. Utkarsh Small Finance Bank
Utkarsh SFB offers 9.10% to senior citizens for FDs maturing between two and three years.

According to the website, “Penalty on premature withdrawal is 1% (not applicable for closure within 7 days) i.e. 1% less than the card rate as on the date of deposit, for the period for which the deposit has remained with the Bank or 1% less than the contracted rate, whichever is lower.”

3. Equitas Small Finance Bank
Interest rates on FDs can go up to as high as 9% for senior citizens in this small finance bank. NO interest will be paid where premature withdrawal of deposits takes place before completion of the minimum specified period.

4. Suryoday Small Finance Bank
Suryoday Small Finance Bank offers an interest rate of 9.10% for FDs maturing between two years and three years. According to the bank website, “n case of Premature withdrawal for Closure or renewal or partial withdrawal of term deposit, interest shall be paid for the period the deposit remained with the bank at a rate of interest prevailing on the date of booking of the deposit for such tenor, less the applicable penalty of 1%”

5. Fincare Small Finance Bank
For senior citizens, the bank offers an interest rate of 9.21% for FDs maturing in 750 days.

6. Jana Small Finance Bank
Jana Small Finance Bank offers an interest rate of 9% to senior citizens on FDs maturing in 1095 days. As per the website, “In case of premature withdrawal of the deposit, penalty of 0.5% will be applied on the applicable rate of interest for the duration which the deposit is maintained with us.”

7. ESAF Small Finance Bank
ESAF Small Finance Bank offers an interest rate an 9% on FDs maturing between two years and less than three years. “No interest shall be paid, if the deposit is closed within the minimum period prescribed for the product (7 days for Domestic Deposits and 1 year for NRE Deposits) .After which , interest will be paid @ Retail FD rate prevailing at the date of contract for the period run minus applicable penalty.”

Bank	Highest interest rate	Tenure
Unity Small Finance Bank	9.50per cent	1001
Utkarsh Small Finance Bank	9.10per cent	2 years - 3 years
Equitas Small Finance Bank	9per cent	444 Days
Jana Small Finance Bank	9per cent	2 years - 3 years
Suryoday Small Finance Bank	9.10per cent	2 years - 3 years
Fincare Small Finance Bank	9.21per cent	750 days
ESAF Small Finance Bank	9per cent	2 years to less than 3 years