Are you a senior citizen looking to secure a stable and predictable return on your hard-earned money? Do you have a proper financial plan to combat the current wave of inflation and geopolitical uncertainty? Then you need not look far, as fixed deposits remain one of the most dependable investment options for senior citizens across the country today.
With the RBI keeping its policy rates unchanged in the June review, prominent banking institutions, especially small finance banks (SFBs), are offering investors lucrative FD rates of over 8%.
Senior citizens can earn up to 8.50% interest on across select banks, provided they meet the basic eligibility criteria. In this article, we compare over 13 banks across the small finance, private and public sectors for fixed deposits of less than ₹3 crore.
continue to lead the race for higher returns. Institutions such as Jana Small Finance Bank, Ujjivan Small Finance Bank, Unity Small Finance Bank, Suryoday Small Finance Bank and ESAF Small Finance Bank are offering some of the most competitive rates, with several deposit tenures yielding 8% or more.
Among private lenders, YES Bank and IDFC FIRST Bank continue to offer competitive returns in the mid-to-high 7% range across select medium-term tenures. Public sector banks, including and Punjab National Bank, continue to offer comparatively lower rates. However, certain special-tenure deposit schemes still offer higher returns than their regular fixed-deposit offerings.
The table below compares senior-citizen eligible tenures and special deposit schemes offered by 13 prominent banks across the country.
Senior Citizen FD rates for July
|
Bank |
Tenure / Scheme |
FD Rate |
|---|---|---|
| Suryoday SFB | 30 Months | 8.25% |
| Suryoday SFB | 5 Years | 8.05% |
| Equitas SFB | 3 Years 1 Day (Maxima FD) | 8.00% |
| Jana SFB | >2–3 Years (1095 Days) | 8.30% |
| Jana SFB | >3–5 Years (1825 Days) | 8.00% |
| Ujjivan SFB | 2 Years | 8.30% |
| Ujjivan SFB | 3 Years 1 Day – 3.5 Years | 8.05% |
| Unity SFB | 501 Days | 8.30% |
| Unity SFB | 12 Months | 8.00% |
| Utkarsh SFB | 2–3 Years (730–1095 Days) | 8.00% |
| Shivalik SFB | 18–23 Months | 8.00% |
| Shivalik SFB | 23 Months 1 Day – 27 Months | 8.50% |
| Shivalik SFB | 27–36 Months | 8.00% |
| ESAF SFB | 501 Days | 8.00% |
| ESAF SFB | 2–<3 Years | 8.25% |
| IDFC FIRST Bank | 500 Days – 3 Years | 7.60% |
| YES Bank | 18 Months 1 Day – <24 Months | 7.75% |
| YES Bank | 36–<60 Months | 7.75% |
| HDFC Bank | 3 Years 1 Day – <4 Years 7 Months | 7.00% |
| Bank of Baroda | >5–10 Years | 7.00% |
| Bank of Baroda | 555 Days (Golden Goal Deposit) | 7.25% |
| Punjab National Bank | 444 Days | 7.10% |
| Punjab National Bank | 666 Days | 7.00% |
Note: The above FD rates are compiled from official bank websites as of 2 July and are subject to change based on bank revisions and tenure-specific conditions.
Given the recent decision to keep RBI policy rates unchanged in June, the gap between small finance banks (SFBs) and larger institutions remains significant.
Senior citizens looking to maximise fixed-income returns should compare not only interest rates but also deposit tenures, bank safety and liquidity requirements before making an investment decision.