New Delhi: Banks are showing significant concern for senior citizens, offering them excellent interest rates on their investments. If you are looking to invest amidst the volatility of the stock market, here are some useful points you should consider first. For senior citizens, Fixed Deposits (FDs) have once again emerged as the most attractive investment option.
For elderly individuals prioritising the safety of their capital and a regular income stream following retirement in 2026, FDs are currently offering impressive returns. Moreover, senior citizens typically receive an interest rate that is 0.50% higher than that offered to the general public. Read on to find detailed information regarding which banks are offering what interest rates on FDs for senior citizens.
key highlights
Highest rate (SFB)
8.50%
ESAF Small Finance Bank
Best private bank
7.50%
IndusInd Bank (18 months)
PSU bank range
7.00–7.10%
PNB, UBI, Canara
Senior citizen extra
+0.50%
The general public rates
Interest Rates at Public and Private Sector Banks
In public sector banks, interest rates on FDs for senior citizens appear to be trending around the 7% mark. Banks such as Punjab National Bank, Union Bank, and Canara Bank are offering interest rates of up to 7.10% for select tenures, specifically 444 days and 555 days.
Among these, SBI and Bank of Baroda are offering interest rates ranging from 7.00% to 7.05% for long-term tenures of 5 to 10 years. Meanwhile, returns offered by private sector banks are slightly more attractive. IndusInd Bank leads the pack, offering an interest rate of 7.50% for a tenure of 18 months.
Kotak Mahindra Bank is offering 7.30%, while Axis Bank is providing an interest rate of 7.20% for long-term deposits. At ICICI Bank and HDFC Bank, these rates are currently set between 7.00% and 7.10%.
Banks Offering Higher Interest Rates
Small Finance Banks are currently offering the highest interest rates. In terms of returns, Small Finance Banks appear to be at the forefront, with interest rates reaching as high as 8.5%. ESAF Small Finance Bank, for instance, is offering an interest rate of 8.50% on FDs with a tenure of 501 days.
Furthermore, Suryoday, Shivalik, Equitas, and Jana Small Finance Banks also appear to be offering interest rates ranging from 8.00% to 8.30% for various tenures. Compared to large commercial banks, these are generally perceived to carry a slightly higher level of risk.
