If you are a senior citizen then this article is for you. With the stock market bouncing around a lot lately, many everyday investors are looking for safer options for their savings and investments. Fixed deposits at banks are topping their lists. These FDs are especially popular among senior citizens, providing them with a steady income and a comfortable lifestyle post-retirement.
Recently, the Reserve Bank of India (RBI) cut the repo rate by 0.25%, leading to speculation that banks might follow suit and lower interest rates on fixed deposits. As of February 2025, at least six banks have adjusted their interest rates on various FD accounts, including those for senior citizens.
Let’s check out some of the FD offers from different banks:
Ujjivan Small Finance Bank Fixed Deposit
Starting February 1, 2025, Ujjivan Small Finance Bank updated its FD interest rates. According to their website, senior citizens can earn between 4.25% and 8.75% on fixed deposits under Rs 3 crore, while general customers can get rates from 3.75% to 8.25%. The top rate of 8.75% is available for senior citizens on 18-month deposits, and all customers can enjoy an 8.45% interest rate on Platinum Fixed Deposits for 12 to 18 months.
DCB Bank Fixed Deposit
DCB Bank is offering over 8% interest on fixed deposits with six different tenures starting February 14, 2025. Their website states that senior citizens can earn 8.25% on deposits that last from 12 months to 12 months and 10 days.
The bank is currently providing an interest rate of 8.55% for accounts held between 19 and 20 months. For accounts that last from 500 days to 26 months and from 26 months to 37 months, the interest rate is set at 8%.
DCB Bank has an interest rate of 8.35% for deposits between 28 and 37 months, while deposits for 61 months earn 8.15%.
Karnataka Bank is offering an 8% interest rate on deposits of 401 days and 7.75% for senior citizens on deposits ranging from 1 to 2 years, applicable for balances under ₹3 crore starting February 18, 2025.
Suryoday Small Finance Bank has been providing an attractive 8.75% interest rate for senior citizens on deposits from 1 to 3 years since February 1, 2025. Additionally, they offer a 9.1% fixed deposit rate for 5-year terms, which also applies to deposits under ₹3 crore.
City Union Bank is giving senior citizens an 8% interest rate on deposits up to 333 days starting February 10. For deposits between 334 and 400 days, the interest rate is 7.25%.
Shivalik Small Finance Bank is offering a competitive 9.05% interest rate for senior citizens on deposits from 12 months and 1 day to 18 months starting February 18. They also provide 8.8% for deposits between 18 months and 24 months, and 8% for deposits from 24 months and 1 day to 36 days.