In today’s time, everyone finds good investment options to protect their future. Especially the Fixed Deposit (FD) is considered to be the most preferred and safe investment option for senior citizens i.e. 60 years or above.
Applying money in FD not only provides guaranteed returns, but the market uproar also has no effect. Recently, many banks have raised interest rates on FD for senior citizens, which can now provide interest up to 9.1%. This news is very special for those who want regular and safe income after their retirement.
In early 2025, many small finance banks have changed their FD Interest Rates. Now senior citizens can get interest up to 9.1% for a period of 5 years, which is 0.25% more than 0.65% more than normal customers.
This opportunity is especially for those who want to protect their money and also get good returns. In this article, we will know which banks are getting the highest interest, what are the benefits of FD, who can open senior citizen FD and what necessary documents are required.
FD interest rate for senior citizens up to 9.1%
Fixed deposit (FD) is an investment in which you deposit money at the interest rate fixed for a fixed time. Banks pay more interest for senior citizens, which makes their retirement life easier.
Currently, Suryoday Small Finance Bank, Utkarsh Small Finance Bank, Unity Small Finance Bank, Jana Small Finance Bank and Northeast Small Finance Bank are getting interest in banks such as 8.2% in banks like 8.2%. These rates are higher than normal FD and especially for people of 60 years or above.
Below the table has been overview of Senior Citizen FD Scheme:
| Speciality | Description |
| Minimum age | 60 years (some banks to 55+ VRS also) |
| Interest rate | 7% to 9.1% |
| Maximum interest rate | 9.1% (Sunrise Small Finance Bank) |
| Minimum investment amount | Starting from ₹ 1,000 (separate as per bank) |
| Maximum investment period | 7 days to 10 years or 20 years |
| Interest payment option | Monthly, quarter, half, annual |
| tax benefit | Exemption under section 80C and 80TTB |
| Premature withdrol | Available (some penalty may take) |
Special things of Senior Citizen FD Scheme
- Interest rate higher: Senior Citizens receives 0.25% to 0.65% more interest than normal customers.
- Fixed returns: The interest rate in FD is fixed, which does not affect the market fluctuations.
- Tax exemption: Under Section 80TTB, a tax exemption on interest up to ₹ 50,000 annually gets.
- Premature withdrawal: Can break FD ahead of time when needed, although some penalty may take place.
- Loan facility: Lone can also be taken by mortgaging FD.
- Auto-Renual: FD matures provide automatic renewal.
Which banks are paying the most interest?
Many banks in the market are paying up to 9.1% interest on FD for senior citizens. The list of top banks below is given:
| Bank name | Interest rate on 5 years FD |
| Sunrise small finance bank | 9.1% |
| Unity short finance bank | 8.65% |
| Northeast Small Finance Bank | 8.5% |
| Utkarsh small finance bank | 8.35% |
| Mass small finance bank | 8.2% |
| Indesind bank | 8.0% |
| Yes bank | 7.75% |
| HDFC Bank | 7.75% |
| SBI | 7.5% |
| Axis bank | 7.75% |
| ICICI Bank | 7.5% |
Apart from these banks, many government and private banks are paying 7% to 8% interest, but small finance banks are getting the highest interest.
Benefits of Senior Citizen FD
- Safe Investment: Money is completely safe in FD, as it is not connected to the market.
- Regular income: Regular income can be found after retirement by taking interest on the monthly or quarterly basis.
- Tax relief: Tax exemption benefits, which increases net returns.
- Loan facility: Lone can also be taken if needed by mortgaging FD.
- Premature withdrawal: You can break FD ahead of time in emergency.
Who can open Senior Citizen FD?
- Age limit: Indian residents who are 60 years or older.
- NRI: NRE/NRO account can also open senior citizen FD.
- VRS: Some banks also provide FD to 55 -year -old VRS.
- Joint account: Husband and wife can also open joint FD.
Essential document
- Identity Card (Aadhaar Card, PAN Card, Voter ID, Driving License)
- Address proof (passport, electricity bill, bank statement)
- Senior Citizen Card (If available)
- Passport Size Photo
How is FD Interest Rate decided?
- The interest rate of FD is fixed based on the bank’s policy, RBI repo rate, market status and deposit period.
- Senior citizens usually get 0.25% to 0.75% more interest.
- The interest rate on long -term FD is higher, but it depends on the bank’s rules.
How does FD get interest?
- Simple Interest: Interest only gets interest on principal.
- Compound Interest: Interest is received on both the principal and the earlier interest, which increases the total returns.
- Interest payment option: monthly, quarter, half or annual.
Tax exemption in Senior Citizen FD
- Under Section 80TTB, FD interest gets tax exemption up to ₹ 50,000 annually.
- A 5 -year tax saving FD gives a discount of up to ₹ 1.5 lakh under section 80C.
- TDS: If the interest is more than ₹ 50,000 annually, TDS can be deducted.
Changes in FD Interest Rate 2025
- In February 2025, RBI cut the repo rate by 0.25%, after which many banks adjusted FD interest rates.
- Banks like Ujjivan Small Finance Bank, Suryoday Small Finance Bank, Utkarsh Small Finance Bank have raised interest rates on senior citizen FD.
- This change is especially applicable to FD of less than ₹ 3 crore.
FD opening process
- You can open FD accounts by going to bank branch or through online website/app.
- The necessary documents and form have to be filled and submitted.
- It is necessary to give FD duration, interest payment option and nominee information.
- FD matures provide auto-rinuals or closing options.
FD interest rate comparison table
| Bank name | 1 year | 3 year | 5 years |
| Sunrise small finance bank | 8.75% | 8.75% | 9.1% |
| Utkarsh small finance bank | 8.25% | 8.35% | 8.35% |
| Unity short finance bank | 8.65% | 8.65% | 8.65% |
| Northeast Small Finance Bank | 8.5% | 8.5% | 8.5% |
| Mass small finance bank | 8.2% | 8.2% | 8.2% |
| SBI | 7.3% | 7% | 7.5% |
| HDFC Bank | 7.1% | 7.5% | 7.75% |
| Axis bank | 7.6% | 7.6% | 7.75% |
| ICICI Bank | 7.65% | 7.5% | 7.5% |
How to use FD Interest Rate Calculator?
- FD Interest Calculator is available on the bank’s website or mobile app.
- Investment amounts, duration and interest rates can be detected by the total interest and maturity amount.
- This makes it easier to make the right investment plan.
Fautable things when investing in FD
- Must compare the interest rate.
- Choose the duration of FD thoughtfully.
- Know the conditions of premature withdrawal.
- Understand tax exemption and TDS rules.
- Must add nominee.
Benefits and Damage of FD Interest Rate
Benefits:
- Safe and guaranteed returns
- Tax exemption advantage
- Regular income option
Loss:
- Return may be reduced if inflation increases due to interest rate fixing.
- Penalty may be imposed on premature withdrawal.
- The interest rate in some banks may also be low.
Suggestion for Senior Citizen FD
- Always compare the interest rate.
- Do check the credibility of the bank.
- Select the option of interest payment according to the need.
- You can choose 5 years tax saving FD for tax planning.
conclusion
FD is a great opportunity for senior citizens to get interest up to 9.1%. This can make his retirement life even easier and safe. However, before investing, all conditions, interest rates and tax rules must be understood. Small finance banks are getting more interest, but it is also necessary to check their credibility and security. Due to the change in FD Interest Rate 2025, this opportunity can be for limited time, so decide to invest at the right time.
Disclaimer:
This article is only for information. The FD Interest Rate may change from time to time and the terms of each bank may vary. Be sure to get complete information from the bank before investing. Small finance banks have higher interest rates, but it is necessary to check their safety and reliability.
The guarantee on FD is only up to ₹ 5 lakhs (under DICGC). Before making any investment, consult your financial advisor. The 9.1% interest rate on FD is currently available in some banks, this offer is not forever and may also change in future. Do not consider this news as an investment advice, invest only by reading complete information and bank terms.
