FD Interest Rates: Fixed deposits remain one of the most trusted investment options for senior citizens, as they offer security against capital loss alongside steady returns.

Fixed Deposit: After retirement, senior citizens are often concerned about the safety of their savings and generating additional monthly income alongside their pension. At this stage of life, they seek schemes that carry no risk of capital loss while providing assured, periodic returns. Fixed income schemes—such as fixed deposits—serve as an excellent option, offering a source of stable, additional income for those who have retired or are nearing retirement. The key question now is: which banks are offering higher interest rates on FDs?

SFBs Lead the Way in Interest Rates

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

List of Small Finance Banks Offering Higher Interest Rates

• Equitas Small Finance Bank offers a maximum interest rate of 8.5% on its 'Maxima FD' for a tenure of three years and one day.
• Shivalik Small Finance Bank offers 8.5% interest for tenures ranging from 23 to 27 months.
• Jana Small Finance Bank offers 8.3% interest on deposits with tenures exceeding two years up to three years.
• Suryoday Small Finance Bank offers up to 8.25% interest on deposits with tenures of up to five years.
• Utkarsh Small Finance Bank is offering interest of up to 8.30% on deposits with a tenure of up to 3 years.
• Ujjivan Small Finance Bank is offering interest of up to 8.25% on deposits for a period of up to 3 years.

How much will the deposit earn?

If a senior citizen invests ₹10 lakh at an interest rate of 8.50%, they will earn up to ₹85,000 in annual interest. A key point regarding this investment for senior citizens is that if their earnings from the FD exceed ₹50,000 in a financial year, the bank will deduct TDS. To avoid this, one must submit Form 15H.