FD rates compared: Where you can earn up to 8.5% as a senior citizen | Personal Finance

Investors willing to move beyond large public sector banks can earn up to 1.65 percentage points more on fixed deposits, with small finance banks (SFBs) offering interest rates of up to 8.1% for regular depositors and 8.5% for senior citizens, compared with 6.45-6.75% offered by India’s largest public sector lenders.

 

An analysis of fixed deposit rates across 28 banks and NBFCs by Stable Money shows that while Suryoday Small Finance Bank and Utkarsh Small Finance Bank currently offer the highest regular FD rates of 8.1%, Shivalik Small Finance Bank and Unity Small Finance Bank are offering 8.5% to senior citizens. Among public sector banks, the highest rate for regular customers is 6.75% at Bank of Baroda, while Bank of India offers 7.45% to senior citizens.

 

“The fixed deposit landscape continues to see measured rate revisions as banks recalibrate their deposit offerings in line with evolving liquidity requirements and interest rate expectations. This week, both IDFC FIRST Bank and IndusInd Bank have revised their fixed deposit rates across select tenures. Notably, IndusInd Bank is now offering up to 7.0% for general citizens and 7.75% for senior citizens on its 3-year fixed deposits, reinforcing the continued competitiveness among private sector banks in attracting depositors,” said Saurabh Jain, Co-founder & CEO, Stable Money.

 

 

“These revisions highlight that attractive returns are available across a diverse set of institutions, including both private sector and small finance banks. While interest rates remain an important consideration, investors should look beyond headline yields and assess factors such as the bank’s financial strength, investment tenure, liquidity needs, and the protection offered under the DICGC deposit insurance framework before making investment decisions,” said Jain. 

 

Private sector banks largely offer between 6.5% and 7.45%, with Bandhan Bank topping the segment at 7.45%, followed by IDFC FIRST Bank, Yes Bank, RBL Bank and IndusInd Bank, each offering around 7.2-7.25%.

 

PSU banks continue to lag

 

Public sector banks remain the most conservative on deposit pricing.

 

Bank of Baroda: 6.75%

Bank of India: 6.70%

Punjab National Bank: 6.60%

Indian Overseas Bank: 6.60%

State Bank of India: 6.45%

 

Most PSU lenders continue to offer their best rates on special maturities ranging between 444 and 555 days, instead of the traditional one-, three- or five-year deposits.

 

Senior citizens get up to 8.5%

 

Senior citizens continue to enjoy a meaningful premium across banks.

 

The highest rates currently available are:

 

• 
  Shivalik Small Finance Bank: 8.5%
• 
  Unity Small Finance Bank: 8.5%
• 
  Suryoday Small Finance Bank: 8.25%
• 
  Utkarsh Small Finance Bank: 8.25%
• 
  Jana Small Finance Bank: 8.3%
• 
  Ujjivan Small Finance Bank: 8.3%

 

Among larger banks, Bank of India leads public sector lenders with 7.45%, while Axis Bank and Bank of Baroda offer 7.25%.

 

NBFCs remain competitive

 

Deposit-taking NBFCs also continue to offer attractive returns.

 

• 
  Shriram Finance: 7.5% (8% for senior citizens)
• 
  Mahindra Finance: 7.45% (7.8% for senior citizens)
• 
  Bajaj Finance: 7.4% (7.75% for senior citizens)

• 
   

These rates are broadly comparable with private banks but remain below the best offers from small finance banks.

 

“Fixed deposits continue to remain an important component of a balanced investment portfolio, offering stability, predictable returns, and capital preservation. Investors should also consider diversifying deposits across multiple institutions while staying within the DICGC insurance coverage limit of ₹5 lakh per bank. A well-diversified allocation across issuers and tenures can help optimise returns while maintaining the safety and reliability that fixed income investments are designed to deliver,” said Jain.