Fixed deposit (FD) has always been a safe and reliable investment option for senior citizens in India. In the last few years, there have been several changes in the FD Interest Rate, so that investors can get good returns on their money. Especially, talking about Senior Citizen FD Interest Rate 2025, the interest rates that were around 7% till now have now reached above 9% in many banks. This change is not only beneficial for senior citizens, but is also very important for their financial security and future planning.
In today’s time, when inflation is continuously increasing, the high interest rate FD schemes are proving to be very relieved for senior citizens. Now small and private banks, especially small finance banks, are offering interest rates from 9% to 9.25%. Earlier, most of the big government and private banks used to give interest rates ranging from 7% to 7.5%.
But in 2025, there has been a tremendous bounce in the Senior Citizen FD Interest Rate, which will benefit senior citizens more on their investment. Let us know in detail, which banks are getting the highest interest, what are its conditions and what things should be kept in mind.
Senior Citizen FD Interest Rate 2025: Overview Table
| Acquaintance | Description |
| Scheme name | Senior Citizen Fixed Deposit |
| Minimum interest rate (2025) | 7% (Government/Private Bank) |
| Maximum interest rate (2025) | 9.25% (Small Finance Bank) |
| Highest bank | Suryoday Small Finance Bank (25 months – 9.25%) |
| Other major banks | Ekta, Northeast, Ujeevan, ICICI, HDFC, SBI, Bajaj Finance |
| Minimum investment amount | ₹ 1,000 to ₹ 10,000 (as per bank) |
| Maximum investment amount | No limit (FD), ₹ 30 lakh in SCSS |
| Tenure | 7 days to 10 years |
| Tax exemption | Under 80C (5 -year FD), TDS exemption to senior citizens |
| Interest payment option | On monthly, quarterly, half, annual or maturity |
Senior Citizen FD interest rate 2025: What is a new change?
In 2025, there has been a major change in FD Interest Rate for Senior Citizens. Now banks like Suryoday Small Finance Bank are paying up to 9.25% interest on 25 months FD. At the same time, Unity Small Finance Bank and Northeast Small Finance Bank are also paying interest from 8.65% to 9%. Earlier, most of the big banks used to pay interest from 7% to 7.5%, but now small finance banks are offering more returns.
- Suryoday Small Finance Bank: 9.25% interest on 25 months FD
- Unity Small Finance Bank: 8.65% interest on 5 -year FD
- Northeast Small Finance Bank: 8.50% interest on 3 year old FD
- ICICI, HDFC, SBI: 7% to 7.55% interest on 5 -year FD
These rates can be changed according to the bank’s policy and time, so before investing, please confirm the bank’s website or branch.
Senior Citizen FD Interest Rate 2025: Interest Rates of major banks
| Bank name | 1 year | 3 year | 5 years | Maximum interest rate (%) |
| Sunrise small finance bank | 7.35% | 9.10% | 9.10% | 9.25% |
| Unity short finance bank | 7.75% | 8.65% | 8.65% | 8.65% |
| Northeast Small Finance Bank | 7.50% | 8.75% | 8.50% | 9.00% |
| Ujjivan Small Finance Bank | 8.40% | 7.70% | 7.70% | 8.55% |
| ICICI Bank | 7.10% | 7.40% | 7.55% | 7.55% |
| HDFC Bank | 7.10% | 7.40% | 7.25% | 7.55% |
| SBI | 7.30% | 7.50% | 7.50% | 7.50% |
| Bajaj finance | 7.85% | 8.30% | 8.60% | 8.60% |
Benefits of Senior Citizen FD
- High interest rate: Senior citizens get 0.25% to 0.75% more interest on FD than ordinary citizens.
- Safety: FD is guaranteed up to ₹ 5 lakh under DICGC.
- Flexibility: You can choose a duration of 7 days to 10 years.
- Tax exemption: 5-year tax saving exemption under 80C on FD, as well as TDS exemption limit FY 2025-26 up to ₹ 1 lakh.
- Interest Payment Options: You can take interest on monthly, quarterly, half, annual or maturity.
- Loan facility: Lone is also easily available on FD, due to which there is no problem of money in emergency.
How to invest in senior citizens FD?
- Choose a bank or finance company: First choose the bank or NBFC who is paying the most interest.
- Online or offline application: You can open FD by going to the bank branch or from the bank’s website/app.
- KYC Document: It is necessary to install Aadhaar card, PAN card, address proof and senior citizen proof (such as pension card).
- Choose the investment amount and duration: Choose the amount and as long as it is to FD.
- Interest Payment Options: Choose to take interest on monthly, quarterly, half, annual or maturity.
- Get FD receipt: After investment, the bank will give you FD receipt, which will have an interest rate, duration and maturity date written.
Senior Citizen FD Interest Rate 2025: Tax and other rules
- Tax exemption: 5 years tax saving FD gives a discount of up to ₹ 1.5 lakh under 80C.
- TDS exemption: The TDS exemption limit for senior citizens in FY 2025-26 has been reduced to ₹ 1 lakh.
- Tax on interest: Interest from FD is taxable according to your tax slab.
- SCSS vs. FD: Senior Citizen Savings Scheme (SCSS) also gets 8.2% interest, but FD has no upper limit of investment.
Senior Citizen FD Interest Rate 2025: Whom to choose – Bank FD or SCSS?
| Feature | Senior Citizen FD | SCSS (Senior Citizen Savings Scheme) |
| Interest rate | 7% – 9.25% | 8.2% |
| input range | No limit | Above 3 million |
| Duration | 7 days – 10 years | 5 years (can increase up to 3 years) |
| Tax exemption | 80C (5 years FD) | 80 c |
| Interest payment | Flexible | Quarter |
| Security | DICGC (up to ₹ 5 lakh) | Full guarantee by the government |
Senior Citizen FD Interest Rate 2025: Noted things before investment
- See bank’s credibility: Small finance banks pay more interest, but definitely check their financial condition.
- DICGC Cover: FD is guaranteed only up to ₹ 5 lakh, if there is more amount, then invest in different banks.
- Validity of interest rate: Interest rates vary from time to time, confirm from the bank’s website before investment.
- Premature withdrawal: Breaking FD before maturity may impose penalty.
- Make sure to make a nominee: While opening FD, add nominee, so that the family can get the money in any untoward.
- Online FD: Nowadays most banks offer online FD, so that investment can be made from home.
Documents required for investment in Senior Citizen FD
- Aadhar card
- PAN card
- Address proof (electricity bill, ration card etc.)
- Senior Citizen Proof (Pension Card, Senior Citizen Card)
- Passport Size Photo
Senior Citizen FD Interest Rate 2025: Example
Suppose, you offer ₹ 5 lakh FD for 25 months in Suryoday Small Finance Bank, on which 9.25% annual interest is available. So after 25 months you will get more than ₹ 60,000 interest. Similarly, if you make FD at 7.5% interest in a large bank, then interest can be made from ₹ 10,000 to ₹ 12,000.
Senior Citizen FD Interest Rate 2025: Frequently Asked Questions (FAQ)
Q1. Who can invest in senior citizens FD?
Indian citizens aged 60 years or older, NRI (in some banks), pensioners etc.
Q2. Is premature withdrawal possible in FD?
Yes, but some penalty may be cut. Do read the conditions of the bank.
Q3. How to get a loan on FD?
Lone can be taken from 75% to 90% by mortgaging FD.
Q4. Does FD get tax exemption?
5 -year tax saving FD is exempted under 80C. Interest on normal FD is taxable.
Q5. Which bank is paying the highest interest?
In 2025, Suryoday Small Finance Bank is paying 9.25% interest on 25 months FD.
Other advantages of fixed deposits for senior citizens
- Non-risk investment: FD does not have market risk, so money is safe.
- Regular Income: Monthly or quarterly interest option provides regular income.
- Online Management: It is easy to open, renew FD and check interest.
- Property Planning: Property can be planned by adding nominees to FD.
Conclusion
In 2025, there has been a tremendous increase in the Senior Citizen FD Interest Rate, giving senior citizens more interest on their retirement funds. Banks such as Suryoday Small Finance Bank are offering interest rates of up to 9.25%, which is one of the highest rates ever. However, before investing, check the bank’s credit, DICGC cover, validity of interest rate and other conditions. FD is a safe and stable investment option, which gives economic security and regular income to senior citizens.
Disclaimer:
This article has been written only for the purpose of information and education. FD’s interest rates vary from time to time and each bank has its own terms. Other small finance banks including Suryoday Small Finance Bank are paying more interest, but must check their financial position and the limit of DICGC cover. Before investing in FD, confirm the official website or branch of the bank or finance company. This is not an investment advice. FD’s interest rates have reached 9.25%, but it is not applicable in every bank. It is important to understand all conditions and risks before investment.
