In the wake of the Reserve Bank of India’s (RBI) recent repo rate cut of 25 basis points (bps) announced during the bi-monthly monetary policy meeting on April 9, 2025, several major banks have slashed their fixed deposit (FD) interest rates. The move has led to a general decline in deposit returns, especially from leading players like State Bank of India (SBI), HDFC Bank, ICICI Bank, Federal Bank, and Yes Bank.
Downward revision in FD interest rates
With the RBI shifting to a more accommodative stance to support economic growth, the reduction in policy rates has led to a downward revision in deposit rates across most large commercial banks. For conservative investors—particularly senior citizens who rely on steady returns from FDs—this shift can significantly impact the returns on investments.
FD interest rate up to 8.05%: 4 banks that are still offering special FDs; Check the last date, latest interest rates
These banks are still offering high interest rates
Despite the general trend of declining interest rates, a few small finance banks and regional banks are still offering attractive FD interest rates—some as high as 9.10% for senior citizens. These banks are looking to attract long-term deposits and are offering better-than-average rates in this low interest rate environment.
Top banks offering highest FD rates
If you’re a senior citizen looking to maximize your returns, here are some banks currently offering FD rates above 8%, with a few going as high as 9.10%:
| Bank Name | Interest Rates (p.a.) | ||
| Highest slab | |||
| % | Tenure | Revison date | |
| SMALL FINANCE BANKS | |||
| AU Small Finance Bank | 8.25 | 18 months | 16-Apr-25 |
| Equitas Small Finance Bank | 8.55 | 888 days | 7-Apr-25 |
| ESAF Small Finance Bank | 8.25 | 444 days | 7-Apr-25 |
| Jana Small Finance Bank | 8.75 | Above 2 years to 3 years | 5-Apr-25 |
| NorthEast Small Finance Bank | 9 | 18 months 1 day to 36 months | 18-Jan-25 |
| Suryoday Small Finance Bank | 9.1 | 5 years | 1-Feb-25 |
| Ujjivan Small Finance Bank | 8.75 | 18 months | 21-Feb-25 |
| Unity Small Finance Bank | 9.1 | 1001 days | 11-Mar-25 |
| Utkarsh Small Finance Bank | 9.1 | 2 years to 3 years; 1500 days | 7-Jun-24 |
Sources: From Paisabazaar dataFD interest rates up to 7.95%: These banks have revised FD interest rates last weekGiven the downward pressure on interest rates, these attractive FD rates may not last long. Banks may revise their deposit rates soon to align with the broader market trend. Hence, locking in a high FD rate, especially if you’re a senior citizen, could be a smart move to secure risk-free returns for the medium to long term.
Small Finance Banks are RBI-regulated banks and customers should also ensure that the bank is covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance of up to Rs 5 lakh.
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