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Senior citizens can earn up to 8% interest rate on 5-year fixed deposits; compare the top FD rates offered by public, private, and small finance banks
For senior citizens seeking stable and fixed income, there are still attractive fixed deposit (FD) options available, despite many leading banks and small finance banks slashing their FD interest rates. Currently, a few banks offer FD rates of up to 8% on their five-year senior citizen FDs. The interest rates vary among public and private sector banks, as well as small finance banks, for FDs of the same duration.
Small finance banks offer the highest five-year FD interest rates for senior citizens, with Suryoday Small Finance Bank providing an 8% interest rate, followed by Jana Small Finance Bank at 7.77%, and Ujjivan Small Finance Bank at 7.7%. Other small finance banks, such as Utkarsh Small Finance Bank, Equitas Small Finance Bank, and AU Small Finance Bank, offer interest rates ranging from 7.5% to 7.25%.
Among private sector banks, IDFC Bank, Yes Bank, and SBM Bank India offer a 7.5% interest rate each on their five-year fixed deposits for senior citizens. Other private sector banks, such as DCB Bank, Axis Bank, and RBL Bank, offer interest rates ranging from 7.25% to 7.1%.
Public sector banks also offer competitive interest rates, with State Bank of India providing a 7.05% FD interest rate on its five-year senior citizen FD. Bank of Baroda offers a 6.9% rate, while Bank of India and Canara Bank offer a 6.75% rate each on their five-year FDs for senior citizens.
Overall, senior citizens have a range of options to choose from, with interest rates varying from 8% to 5.5% depending on the bank and the duration of the FD. It is essential for senior citizens to compare the interest rates and terms offered by different banks to make an informed decision that suits their financial needs. By choosing the right FD option, senior citizens can ensure a stable and fixed income, which can help them manage their expenses and maintain their standard of living.
Five Banks, Including City Union Bank, DCB Bank, and J&K Bank, Hike Fixed Deposit Rates, Offering Up to 7.65% Interest for Senior Citizens
This week, six banks in India revised their fixed deposit (FD) rates, continuing a trend of reductions over the past few months. The revised rates for senior citizens now range between 6.50% and 8.00% across most banks. The banks that revised their FD rates include City Union Bank, DCB Bank, J&K Bank, South Indian Bank, Kotak Mahindra Bank, and AU Small Finance Bank.
City Union Bank, a private sector bank, revised its FD interest rates on January 14, 2026. The bank is now offering senior citizens a deposit rate of 7.25%, while super senior citizens (those 80 years and above) can earn a deposit rate of 7.50%. The revised interest rates for senior and super senior citizens at City Union Bank vary depending on the tenure of the deposit. For senior citizens, the rates are: 7.00% for 365-499 days, 7.25% for 500 days, 6.75% for 501 days to three years, and 6.50% for above three years to 10 years.
For super senior citizens, the rates are slightly higher: 7.05% for 365-499 days, 7.50% for 500 days, 6.80% for 501 days to three years, and 6.60% for above three years to 10 years. These revised rates are indicative of the current market trend, where banks are adjusting their interest rates in response to changes in the economy and monetary policy. It is essential for depositors to review the revised rates and consider their options before making any investment decisions. The changes in FD rates may impact the returns on deposits, and individuals should evaluate their financial goals and risk tolerance before choosing a deposit tenure and bank.
Fixed Deposit rates soar up to 8.05% for general public with 5-year investment term; Check out the complete list of banks
Fixed Deposit (FD) Rates Up to 8.05% for General Citizens Investing for Five Years
In a move to encourage savings and investments, several banks in the country have increased their fixed deposit (FD) interest rates. For general citizens investing for a period of five years, the interest rates can go up to 8.05%. This is a significant increase, making FDs an attractive option for those looking to grow their savings.
List of Banks Offering High FD Rates
Here is a list of banks offering high FD rates for a five-year investment period:
- DCB Bank: 8.05% interest rate for a five-year FD
- Yes Bank: 7.75% interest rate for a five-year FD
- IndusInd Bank: 7.75% interest rate for a five-year FD
- Kotak Mahindra Bank: 7.70% interest rate for a five-year FD
- Axis Bank: 7.60% interest rate for a five-year FD
- HDFC Bank: 7.55% interest rate for a five-year FD
- ICICI Bank: 7.50% interest rate for a five-year FD
- State Bank of India (SBI): 7.40% interest rate for a five-year FD
- Bank of Baroda: 7.35% interest rate for a five-year FD
- Punjab National Bank (PNB): 7.30% interest rate for a five-year FD
Benefits of Investing in FDs
Investing in FDs offers several benefits, including:
- Guaranteed returns: FDs offer a fixed interest rate, ensuring that your investment grows at a guaranteed rate.
- Low risk: FDs are a low-risk investment option, making them suitable for conservative investors.
- Liquidity: FDs can be easily liquidated, allowing you to access your funds when needed.
- Tax benefits: Interest earned on FDs is taxable, but you can claim a tax deduction on the interest income.
How to Invest in FDs
To invest in an FD, you can visit the website of the bank or visit a branch in person. You can also invest through mobile banking or online banking platforms. The minimum deposit amount and investment period may vary depending on the bank and the type of FD.
Overall, investing in FDs can be a great way to grow your savings and earn a fixed income. With interest rates up to 8.05% for a five-year investment period, now is a good time to consider investing in an FD.