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FD Interest Rates: Fixed deposits are still considered one of the most reliable investment options for senior citizens, as there is no fear of loss of money, and returns are also generated.

Small finance banks are offering higher interest rates on FDs

Fixed Deposit: After retirement, adult citizens are always concerned about the safety of their deposits and the availability of a monthly income in addition to their pension. At this age, they seek schemes that are risk-free and offer guaranteed returns over time. Therefore, investing in fixed income schemes is an excellent option for those who have retired or are nearing retirement age, providing an additional and stable source of income. The biggest question now is which banks offer higher interest rates on FDs?

SFB ahead in terms of interest

According to Paisabazaar.co, SFBs dominate the segment with the highest interest rates, while private sector and public sector banks (PSBs) offer comparatively lower interest rates. As of the latest update for June 2026, Shivalik Small Finance Bank and Equitas Small Finance Bank offer the highest interest rates of up to 8.5% on FDs for senior citizens for select tenures.

List of some small finance banks offering higher interest rates

• Equitas Small Finance Bank is offering the highest interest rate of up to 8.5% on the 'Maxima FD' of three years and one day.
• Shivalik Small Finance Bank is offering an interest rate of 8.5% for tenures of 23 months to 27 months.
• Jana Small Finance Bank is offering 8.3% interest on deposits of more than two years and up to three years.
• Suryoday Small Finance Bank is offering interest up to 8.25% on deposits for a tenure of up to 5 years.
• Utkarsh Small Finance Bank is offering interest up to 8.30% on deposits for tenures up to 3 years.
• Ujjivan Small Finance Bank is offering interest up to 8.25% on deposits maturing in up to 3 years.

How much will be the earning on the deposit amount?

If a senior citizen invests ₹10 lakh at an interest rate of 8.50%, they will earn up to ₹85,000 in annual interest. The most important investment concern for senior citizens is that if their FD earnings exceed ₹50,000 in a given financial year, the bank will deduct TDS. To avoid this, they must fill out Form 15H.