It seems that the high-interest-rate regime, which prevailed for almost three years, has come to an end in the wake of the RBI slashing the repo rate by 100 basis points (bps) this year. However, there are some private sector banks that are still offering attractive interest rates on their fixed deposits (FDs) for senior citizens.
If senior citizens are planning to invest in fixed deposits (FD) in 2025, then they can probably look at some small finance banks and private sector banks to park their money. At present, many banks are giving more than 8% interest on FDs to senior citizens, which can be considered a better option considering the current market conditions.
ALSO READBest FD rates July 2025: Senior citizens can still earn up to 8.8% on THESE bank FDs
According to Bankbazaar.com data, banks like Suryodaya Small Finance Bank, Unity Small Finance Bank, Equitas Small Finance Bank, Jana SFB are offering more than 8% to senior citizens. Most of these banks offer 50 bps higher interest on FDs to senior citizens than the rates they offer to general customers.
The following banks are offering the highest interest rates on their FDs for senior citizens:
BankHighest advertised rateTenureSuryodaya Small Finance Bank8.40%1825 days
(5 years)Unity Small Finance Bank8.25%1001 daysEquitas Small Finance Bank8.20%888 daysJana Small Finance Bank8.20%1095 – 1825 days
(3-5 years)Utkarsh Small Finance Bank8.15%730 – 1095 days
(2-3 years)ESAF Small Finance Bank8.10%444 daysUjjivan Small Finance Bank8.10%730 days
(2 years)IndusInd Bank7.98%402 – 730 days
(1.1 – 2 years)Yes Bank7.85%1080 – 1800 days
(36-60 months)AU Small Finance Bank7.82%767 to 1095 days
(2.1-3 years)RBL Bank7.70%767 to 1095 days
(2.1 – 3 years)Note: Highest interest rates as advertised on the company’s website on July 25, 2025; Subject to change as per the company’s policies. Compiled by BankBazaar.com
“Rising living costs and unpredictable returns from market-linked products are two major challenges retirees face today. Fixed deposits for senior citizens offer a simple and reliable way to earn steady returns while keeping capital safe,” says Adhil Shetty, CEO, BankBazaar.
With rates up to 8.40%, this is also a good time to lock in, feels Shetty. “Ladder your FDs across different maturities to balance liquidity with better yields. If you rely on regular income, opt for monthly or quarterly interest payouts to meet day-to-day expenses without touching your principal,”
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