FD Rate Hike: India’s Reserve Bank’s Monetary Policy Committee boosted the repo rate by 25 basis points, moving it from 5.25 percent to 5.50 percent during their Wednesday, October 7 session. As a result, banks are anticipated to adjust their fixed deposit (FD) interest rates accordingly.
Industry professionals note that certain banks might update their FD rates shortly after the RBI’s policy announcement, whereas others could require several weeks to implement changes.
The timeline for these adjustments is primarily influenced by each bank’s specific funding needs and cash position. Shopping around for competitive rates across multiple banks and selecting an appropriate duration can help you boost your interest earnings while keeping risk in check.
Top FD interest rates for senior citizens at banks nationwide
1. Small Finance Banks
Equitas Small Finance Bank: Up to 8.50%
ESAF Small Finance Bank: Up to 8.50%
Suryoday Small Finance Bank: Up to 8.50%
Jana Small Finance Bank: Up to 8.30%
Ujjivan Small Finance Bank: Up to 8.30%
Shivalik Small Finance Bank: Up to 8.25%
Utkarsh Small Finance Bank: Up to 8.25%
AU Small Finance Bank: Up to 7.90%
Slice Small Finance Bank: Up to 7.75%
2. Private Sector Banks
DCB Bank: Up to 8.00%
Bandhan Bank: Up to 7.95%
SBM Bank India: Up to 7.80%
Axis Bank: Up to 7.25%
Kotak Mahindra Bank: Up to 7.15%
HDFC Bank: Up to 7.10%
ICICI Bank: Up to 7.10%
IDBI Bank: Up to 7.05%
3. Government banks
Bank of India: Up to 7.45%
Bank of Baroda: Up to 7.25%
Indian Overseas Bank: Up to 7.10%
Punjab National Bank: Up to 7.10%
State Bank of India (SBI): Up to 7.05%
Union Bank of India: Up to 7.05%
4. Foreign banks
Standard Chartered Bank: Up to 7.10%
Deutsche Bank: up to 7.00%
HSBC Bank: Up to 6.00%
How much will you earn on an FD of Rs 10 lakh in 3 and 5 years?
If you make a fixed deposit (FD) of Rs 10 lakh for a tenure of 3 years or 5 years, the total interest and maturity amount at interest rates of 8.5%, 8% and 7.5% becomes quite attractive.
Investing Rs 10 lakh for a period of 3 years will earn you approximately Rs 277,289 in interest at an 8.5% interest rate. At an 8% interest rate, the total interest will be Rs 259,712, and at 7.5%, you will earn Rs 242,297 in interest over 3 years.
Senior citizens can find FD rates as high as 8.50% at smaller lenders, compared with 6.75%–6.95% at HDFC Bank and ICICI Bank for selected tenures.
#FixedDeposit #SeniorCitizens #PersonalFinance pic.twitter.com/WASdRWaVf9
“>October 5, 2026
If you invest Rs 10 lakh for a longer period, i.e., 5 years, the benefits of compounding increase even more. At the highest interest rate of 8.5%, you will earn Rs 5,03,656 in interest over 5 years, growing your money to Rs 15,03,656. At an 8% interest rate, the total interest over 5 years is Rs 4,69,328 (total maturity: Rs 14,69,328), while at a 7.5% rate, you will earn Rs 4,35,629 in interest over 5 years (total maturity: Rs 14,35,629).