The Reserve Bank of India (RBI) has cut the repo rate by 100 basis points a total of 3 times since February 2025. While this move has provided some relief to the loan takers, it has proved to be harmful for the fixed deposit (FD) customers. Banks have cut the interest rates on their FDs several times since February 2025, disappointing millions of investors.

But, even in this period of decline, there are some Small Finance Banks that are still giving attractive interest rates of up to 9%, especially for senior citizens, this is no less than a ‘boon’! Let’s know which are these banks and how you can get more interest on your hard-earned money.

Small Finance Bank FD Interest Rates

Slice Small Finance Bank

This bank is offering interest ranging from 3.50% to 9.00% on FDs ranging from 7 days to 120 months. These interest rates are the highest in the market. Senior citizens also get 0.50% additional interest, which increases their returns even more.
1 year FD: 7.00% interest
3-year FD: 8.75% interest
5-year FD: 8.00% interest

Unity Small Finance Bank

Unity Small Finance Bank is offering the highest interest rate of 8.60% to its customers. Here too, senior citizens get 0.50% additional interest.
1-year FD: 7.25% interest
3 year FD: 8.15% interest
5-year FD: 8.15% interest

Suryoday Small Finance Bank

This bank is giving up to 8.40% interest on FD. Senior citizens get 0.40% additional interest, which is a good option.
1-year FD: 7.90% interest
3-year FD: 8.40% interest
5-year FD: 8.00% interest

Shivalik Small Finance Bank

In this bank, too, senior citizens are getting 0.50% additional interest on FD. Its maximum rate is 8.30%.
1 year FD: 6.00% interest
3 year FD: 7.50% interest
5-year FD: 6.50% interest

Utkarsh Small Finance Bank

The maximum interest rate of Utkarsh Small Finance Bank is 8.25%. Here also senior citizens get 0.50% additional interest.
1-year FD: 6.25% interest
3-year FD: 8.25% interest
5-year FD: 7.75% interest

Jana Small Finance Bank

The maximum interest rate of Jana Small Finance Bank is 8.20%. Senior citizens get the benefit of 0.50% additional interest.
1-year FD: 7.50% interest
3 year FD: 8.05% interest
5-year FD: 8.20% interest

Ujjivan Small Finance Bank

The maximum interest rate of Ujjivan Small Finance Bank is 8.05%. Here too, senior citizens get 0.50% additional interest.
1-year FD: 7.90% interest
3-year FD: 7.90% interest
5-year FD: 7.20% interest

Risk and security in investment

Small Finance Banks are certainly offering higher interest on FDs, but while investing in them, things like the bank’s credit rating and RBI’s monitoring should be kept in mind. The good thing is that every depositor gets an insurance cover of up to ₹5 lakh on deposits in all scheduled banks through RBI’s subsidiary DICGC (Deposit Insurance and Credit Guarantee Corporation). This includes your FD, savings account, current account, and RD (recurring deposit). That is, your deposit amount up to ₹5 lakh is completely safe.