While overall interest rate has started coming down, but there are still some banks who are offering a high interest rate on fixed deposits (FDs) for senior citizens up to 9.1% for three year tenure. Considering the fact that the Reserve Bank of India (RBI) has cut repo rates and already many banks have reduced their FD and savings account interest rates, now seems like a good time to invest in FDs for a medium time duration like three years. Do note that these interest rates are for FDs worth less than Rs 3 crore.Read below to know the latest FD interest rates for senior citizens
FD interest rate up to 9.1% for senior citizens
Utkarsh Small Finance Bank is offering up to 9.1% interest rate on FDs for three year tenure for senior citizens.
FD interest rate up to 9% for senior citizens
NorthEast Small Finance Bank is offering up to 9% interest rate on FDs for three year tenure for senior citizens.
| Bank name | Interest rate |
| Utkarsh Small Finance Bank | 9.1% |
| NorthEast Small Finance Bank | 9% |
| Jana Small Finance Bank | 8.75% |
| Suryoday Small Finance Bank | 8.75% |
| Unity Small Finance Bank | 8.65% |
| Equitas Small Finance Bank | 8.25% |
Source: paisabazaar.com as of April 23, 2025
FD interest rate up to 8.75% for senior citizens
Jana Small Finance Bank and Suryoday Small Finance Bank are both offering up to 8.75% interest rate on FDs for three year tenure for senior citizens.
FD interest rate up to 8.65% for senior citizens
Unity Small Finance Bank is offering up to 8.65% interest rate on FDs for three year tenure for senior citizens.
FD interest rate up to 8.25% for senior citizens
Equitas Small Finance Bank is offering up to 8.25% interest rate on FDs for three year tenure for senior citizens.
Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it’s recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen circumstances.
Can senior citizens submit Form 15H to prevent TDS deduction from FDs
In Budget 2025 it was announced that TDS on FD would be deducted once the interest amount crosses Rs 1 lakh in a particular bank. Form 15H is a self-declaration form that senior citizens (60 years & above) can submit to avoid TDS on income, provided their total net tax liability is zero. Do note that the TDS deducted by banks can very well be claimed at the time of ITR filing, so it’s not like any extra tax, but it’s like an additional tax compliance process to follow.
Pallav Pradyumn Narang, Partner, CNK, says: “The key condition is that the tax liability on the total income should be nil after considering deductions and rebates. It is not solely based on the basic exemption limit or post-Section 87A rebate thresholds. Instead, if after all deductions (like under Chapter VI-A) and rebates, the tax payable is zero, Form 15H can be submitted.”
Narang explains that this means, “A senior citizen can submit Form 15H even if the gross total income exceeds Rs 3 lakh, provided that after claiming eligible deductions (such as under Sections 80C, 80D, etc.), the taxable income falls below the basic exemption limit (Rs 3 lakh for senior citizens under the old regime or Rs 4 lakh under new regime) and results in zero income tax liability. The form is valid as long as the final tax payable is nil.”
