FD Investors Take Note: 9% Interest Still Available Despite RBI’s Rate Cut
The Reserve Bank of India (RBI) recently announced a 50 basis point cut in the repo rate, bringing it down to 5.5%. This was the third rate cut of 2025. Normally, a repo rate cut leads to lower fixed deposit (FD) interest rates as banks can borrow money more cheaply from the RBI.
However, despite the downward trend, some Small Finance Banks (SFBs) are still offering 9% or more interest on FDs — especially for senior citizens. If you’re eligible, now is a great time to lock in higher returns.
List of Banks Still Offering High FD Rates to Senior Citizens Bank Name Interest Rate (Annual) Tenure| AU Small Finance Bank | 8.25% | 18 months |
| Equitas Small Finance Bank | 8.55% | 888 days |
| ESAF Small Finance Bank | 8.25% | 444 days |
| Jana Small Finance Bank | 8.55% | Between 1 to 3 years |
| NorthEast Small Finance Bank | 9.00% | 18 months 1 day to 18 months 2 days |
| Suryoday Small Finance Bank | 8.80% | 30 months to 3 years |
| Ujjivan Small Finance Bank | 8.55% | 18 months |
| Unity Small Finance Bank | 9.10% | 1001 days |
Source: PaisaBazaar
Why Senior Citizens Should Act FastAt a time when most major banks are expected to lower their FD rates, these SFBs provide a safe and rewarding option for senior citizens looking for guaranteed returns.
Is It Safe to Invest in Small Finance Banks?Yes. According to AU Small Finance Bank, SFBs are regulated by the RBI just like regular banks. They follow all key banking norms like:
Statutory Liquidity Ratio (SLR)
Cash Reserve Ratio (CRR)
Promoter capital contribution rules
Other eligibility and compliance requirements
This means SFBs are under strict supervision and are considered safe for deposits, similar to mainstream banks.
ConclusionIf you're a senior citizen looking for high FD returns, this could be your best opportunity before rates go further down. Be sure to check the terms and conditions of each bank, and choose a tenure that suits your financial goals.
