Regarding where to keep their retirement savings, many people look for safe and fixed return options. Fixed deposit or permanent trust is an important medium in that list. Especially for senior citizens, many banks offer additional interest compared to general customers. According to Paisabazaar's data till September 9, 2026, senior citizens are getting interest up to 8.50% on FDs in some small finance banks.
Interest up to 8.50% in Small Finance Bank
Senior citizens are getting comparatively higher interest rates on FDs from small finance banks.
Equitas Small Finance Bank's 'Maxima FD Scheme' offers 8.50% annual interest for senior citizens for a tenure of 3 years and 1 day.
On the other hand, it is mentioned in the given list that ESAF Small Finance Bank is offering 800 days FD and Suryoday Small Finance Bank is offering 8.50% interest on 5 years FD.
FD rates of some other small finance banks
Not just 8.50%, other small finance banks also have higher interest rates of 8%.
Jana Small Finance Bank is offering 8.30% interest on deposits for tenure above 2 years to 3 years.
At Ujjivan Small Finance Bank, 8.30% interest rate has been mentioned on FD for tenure from 3 years 1 day to 3 years 6 months.
Apart from this, Shivalik Small Finance Bank is giving 8.25% interest on deposits for tenure from 23 months to 1 day to 27 months.
How much interest in private bank?
Even among private banks, some institutions are offering interest rates as high as 7 percent on FDs for senior citizens.
It is mentioned in the list that SBM Bank India is offering 8.15% interest on FDs with a tenure of more than 18 months to less than 2 years.
DCB Bank is giving maximum interest of 8.00% for the fixed tenure.
Apart from this, bank is giving interest rate of 7.75% on FD for tenure less than 3 years, IndusInd Bank is giving 7.75% interest rate on fixed FD from 2 to 3 years, Yes Bank is giving 7.75% interest rate on fixed FD and RBL Bank is giving 7.75% interest rate on FD from 18 months to 3 years as per the given information.
Government banks are also getting attractive interest
Government bank FD also has good interest rates for senior citizens for different tenures. State Bank of India (SBI) has the highest interest rate of 7.45% on FD of 3 years tenure. Punjab & Sind Bank is offering 7.65% interest on FD of 666 days. Bank of Baroda's 555 day 'Golden Goal' deposit and Central Bank of India's 444 day FD have 7.25% interest rate, as per the given list. Here, Bank of Maharashtra's 400 day FD and Indian Bank's 555 day FD have 7.25% interest rate.
Security insurance up to Rs 5 lakh
Before making an FD, it is not enough to just look at the interest rate, it is also important to consider the security of the security of the deposit. According to the rules of DICGC, a maximum of Rs 5 lakh of a depositor's principal and interest in a bank is covered under the insurance cover. Therefore, it is important to know about this limit before making FD of large amount of money.
TDS on FD interest of senior citizens
While getting interest from FD, it is important to keep the tax issue in mind. According to the given information, the bank can deduct TDS if the amount of interest earned from the FD of a senior citizen exceeds the specified limit. However, deducting TDS does not mean that the final tax amount of that person will be the same. There may be an opportunity to get refund of excess amount deducted as per the calculation of total income and applicable tax at the time of filing income tax return.
There is a facility to get interest at fixed rate by keeping money in fixed deposit or FD. Generally, banks offer additional interest rates for senior citizens. According to the information provided till 9 September 2026, FD interest up to 8.50% is available for senior citizens in some small finance banks. Private and government banks also have attractive interest rates for different tenures.