FD Interest Rates- Top Banks Offering Highest Returns on Fixed Deposits, Check Now

FD Rates May 2026: Establishing secure and stable savings for retirement has become a significant worry for many individuals today, and fixed deposits (FDs) are rising as the most trustworthy choice. They ensure a steady income at fixed interest rates without exposing you to market risks. Additionally, numerous banks provide extra interest rates of 0.25% to 0.50% for senior citizens. You can find the full list of public and private banks that currently offer returns exceeding 8%.

Planning for retirement is a pressing issue nowadays. With inflation increasing each year, it becomes more challenging for everyday people to save money. If you are a senior citizen in search of a dependable income and secure returns without market risks, a fixed deposit (FD) can be a solid investment choice. Most banks grant senior citizens an additional interest rate benefit of 0.25% to 0.50% compared to regular customers, ensuring better returns on their savings and a reliable source of consistent income.

A lot of senior citizens choose to invest in fixed deposits because they guarantee a stable and secure income. They also come with advantages like the ability to withdraw funds early with minimal penalties, the option to secure a loan against their FD, and the sweep-in facility when linked to a savings account, enhancing both liquidity and financial security. According to a report, small finance banks provide the highest FD interest rates for senior citizens. Here are the banks that are part of this.

ESAF Small Finance Bank offers senior citizens interest rates of up to 8.5%, particularly on 501-day FDs, which is among the highest rates available today.

Shivalik Small Finance Bank provides interest rates of up to 8.3%, with tenures ranging from 21 months and 1 day to 22 months.

Suryoday Small Finance Bank also presents interest rates of up to 8.25%, especially on 30-month FDs, making it one of the top choices.

Equitas, Jana, and Utkarsh Small Finance Bank generally offer interest rates of up to 8% (on 2- to 3-year FDs), which are regarded as favorable for safe and stable returns.

Small finance banks, DCB Bank offers returns of around 7.65%. Among large private banks, ICICI Bank, HDFC Bank, and IDBI Bank typically offer interest rates of 7% to 7.1%. Overall, senior citizens can expect safe returns of around 7% to 8.35% at private banks.

Let us tell you which are the highest FD interest rates for senior citizens in PSU i.e. government banks. Punjab & Sind Bank offers interest up to 7.25% to senior citizens, which is available on FDs of 666 days. Bank of Maharashtra offers interest up to 7.15%, especially on FDs of 400 days. Apart from this, banks like Bank of India (Star Swarnim), Canara Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank and Union Bank of India offer interest up to 7.1% on tenures of 444 to 555 days.

The country’s largest public sector bank, State Bank of India (SBI), offers senior citizens interest rates of up to 7.05% on long-term FDs ranging from 5 to 10 years. FD rates at PSU banks offer stable and secure returns ranging from approximately 7% to 7.25%.