For senior citizens, fixed deposits can provide stable and predictable returns on their lifetime savings, offering a shield from market volatility and uncertainty arising from global events such as the ongoing US-Iran conflict.
Prominent small finance banks (SFBs) across the country, such as AU Small Finance Bank, Equitas Small Finance Bank, and Shivalik Small Finance Bank, among others, are offering them competitive rates across different tenures.
These senior citizen fixed deposit rates can help retirees balance safety, predictability and assured returns with better income generation in a low-risk investment avenue. Keeping these essentials in mind, let’s check out the highest interest rates along different tenures.
Senior Citizen FD Rates – Small Finance Banks in Jun2 2026
| Bank name | Highest slab (%) | Tenure | 1-year (%) | 3-year (%) | 5-year (%) |
|---|---|---|---|---|---|
| 7.90 | 30 months 1 day to 3 years | 6.85 | 7.90 | 7.25 | |
| 7.65 | 600 days | 7.40 | 7.40 | 7.30 | |
| 8.25 | 888 days | 7.60 | 7.60 | 7.50 | |
| 8.30 | 21 months 1 day to 22 months | 6.50 | 7.25 | 6.75 | |
| 8.25 | 30 month | 7.40 | 7.40 | 8.05 | |
| 8.25 | 666 days | 6.50 | 8.00 | 7.50 | |
| 8.00 | 365 days | 8.00 | 7.25 | 7.25 |
Interest rates as of 14 June 2026. For updated terms and conditions, refer to the official website of the respective lending institutions.
Source: Paisabazaar
Eligibility for senior citizen fixed deposit
Individuals aged 60 years and above are eligible for higher fixed deposit interest rates than regular customers. In addition, several banks and NBFCs provide an extra rate benefit to super senior citizens, that is those aged 80 years and above.
For instance, Indian Overseas Bank, Indian Bank, Union Bank of India and RBL Bank offer an additional 0.75% interest rate over and above the regular fixed deposit rates to super senior citizens. Further, Punjab National Bank offers an additional 0.80% p.a. interest rates to super senior FD depositors, Paisa Bazaar notes
Document required
Identity Proof
- Senior citizen ID card
- Passport
- PAN card
- Voter ID card
- Driving licence
- Photo ration card
Address Proof
- Passport
- Telephone bill
- Electricity bill
- Bank Statement with Cheque
- Certificate/ ID card issued by Post office
Key factors to consider before investing in senior citizen FDs
You should understand the SFB senior citizen fixed deposits on a fundamental level. Go through the brochures, terms, and associated factors. Lock in the highest possible rates once you have complete clarity on the terms.
In case of doubts, discuss the issue with the customer service team of the respective lending institution so that you can align tenure selection and maturity with your cash flow needs.
Be clear about liquidity requirements before you lock in a fixed deposit. This is because premature withdrawal later may reduce returns.
It is also vital for all senior citizens to carefully understand the tax implications of FD interest rates offered by small finance banks, so that the actual final returns can be calculated.
Finally, do check the deposit insurance and the bank’s credibility. The higher the credibility and trustworthiness of the banking institution you interact with, the higher the protection your funds are kept under.