Several small finance banks in India offer higher interest rates on FDs for senior citizen investors. Some small finance banks offer FD interest rates of up to 8.50 percent exclusively for senior citizens. These exclusive rates are available for select tenures and offer a safe investment choice with assured returns.
On National Senior Citizen Day, the senior citizens of the country can consider investing in fixed deposit schemes to get guaranteed returns and capital preservation.
Here’s a list of banks that are offering FD interest rates up to 8.50 percent to senior citizens.
Slice Small Finance Bank FD Interest
Slice Small Finance Bank is offering an 8.50 percent interest rate on FD for 18 months 1 Day to 18 months 2 days tenure for senior citizens.
Suryoday Small Finance Bank
Suryoday Small Finance Bank provides an 8.40 percent interest rate on fixed deposits with a five-year tenure. The bank provides an 8.15 percent interest rate on fixed deposits of 30 Months to 36 Months tenure. The rates are effective from August 1, 2025.
Equitas Small Finance Bank
Equitas Small Finance Bank offers an interest rate of 8.20 percent pa for resident senior citizens on a 888-day tenure. The bank is offering 0.60 percent extra for 888 days for senior citizens.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank is offering an 8.15 percent interest rate on FD for up to three years. The bank is offering an 8 percent interest rate on an FD for up to four years. The interest rates are effective from July 25, 2025.
Tax on FD
The TDS rules on FD investments applicable for senior citizens are revised from April 1, 2025. The latest law states that tax on FD investments will be deducted if the senior citizen’s interest income exceeds Rs one lakh in the financial year.
Should you invest in small finance banks?
For people looking for better yields than regular banks, investing in small finance banks may be a good option. However, it is important to assess the bank’s reputation and performance and also consider their financial objectives and risk tolerance before investing.
