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Senior citizen FD rates in October 2026: Check the highest fixed deposit returns from 26 banks
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5 min read | Updated on October 05, 2026, 10:50 IST
SUMMARY
Senior citizen FD rates in October 2026: Check the highest fixed deposit returns offered by 26 banks, with rates of up to 8.50%.
Senior citizen should also check premature withdrawal rules before parking money in an FD.
Fixed deposits remain a popular choice among senior citizens. In October 2026, some banks are offering senior citizens interest rates as high as 8.50% on select term deposit tenures. The highest rates are largely available from small finance banks.
Here is a look at the rates offered by 26 banks to senior citizens.
Senior citizen FD rates in October 2026
| Bank | Highest Rate | 1-Year | 3-Year | 5-Year |
|---|---|---|---|---|
| Equitas Small Finance Bank | 8.50% | 7.60% | 7.60% | 7.50% |
| ESAF Small Finance Bank | 8.50% | 6.50% | 6.50% | 6.25% |
| Suryoday Small Finance Bank | 8.50% | 7.40% | 7.40% | 8.50% |
| SBM Bank | 8.15% | 7.60% | 7.60% | 7.50% |
| Jana Small Finance Bank | 8.30% | 7.50% | 8.30% | 7.77% |
| Ujjivan Small Finance Bank | 8.30% | 7.75% | 7.75% | 7.70% |
| Shivalik Small Finance Bank | 8.25% | 6.25% | 7.75% | 6.50% |
| Utkarsh Small Finance Bank | 8.25% | 6.50% | 8.00% | 7.50% |
| Unity Small Finance Bank | 8.00% | 8.00% | 7.25% | 7.25% |
| DCB Bank | 8.00% | 7.15% | 7.25% | 8.00% |
| Bandhan Bank | 7.95% | 7.50% | 7.75% | 6.60% |
| AU Small Finance Bank | 7.90% | 6.85% | 7.90% | 7.25% |
| RBL Bank | 7.70% | 7.50% | 7.70% | 7.20% |
| Tamilnad Mercantile Bank | 7.70% | 7.30% | 7.20% | 7.20% |
| Capital Small Finance Bank | 7.60% | 7.60% | 7.40% | 7.30% |
| Fincare Small Finance Bank | 7.60% | 6.85% | 7.60% | 7.25% |
| IndusInd Bank | 7.75% | 7.25% | 7.75% | 7.15% |
| YES Bank | 7.75% | 7.15% | 7.75% | 7.50% |
| Dhanlaxmi Bank | 7.75% | 6.75% | 7.00% | 7.00% |
| J&K Bank | 7.55% | 7.05% | 7.20% | 7.25% |
| City Union Bank | 7.50% | 6.90% | 6.75% | 6.75% |
| IDFC FIRST Bank | 7.35% | 6.75% | 7.35% | 7.00% |
| Bank of India | 7.45% | 7.00% | 7.45% | 6.75% |
| Punjab & Sind Bank | 7.35% | 6.35% | 6.35% | 6.45% |
| HDFC Bank | 7.10% | 6.75% | 6.95% | 6.90% |
| ICICI Bank | 7.10% | 6.75% | 6.95% | 6.90% |
Where can senior citizens get 8.50%?
Suryoday Small Finance Bank offers 8.50% on a five-year deposit, while its one-year and three-year rates are lower. Jana Small Finance Bank offers 8.30% for three years, and Ujjivan Small Finance Bank offers 7.75% for both one-year and three-year deposits.
So, for someone deciding between a one-year FD and a five-year FD, looking only at the maximum rate can give a misleading picture.
Private banks offer rates up to 8.15%
Among the private banks in the list, SBM Bank has the highest rate at 8.15% for senior citizens.
DCB Bank follows with a maximum rate of 8.00%, while Bandhan Bank offers up to 7.95%. IndusInd Bank, YES Bank and Dhanlaxmi Bank offer maximum rates of 7.75%.
For senior citizens who prefer larger private-sector banks, HDFC Bank and ICICI Bank offer a maximum rate of 7.10% in the comparison.
What about government banks?
The rates offered by public-sector banks are generally lower than those offered by small finance banks.
Bank of India offers up to 7.45% to senior citizens, with the highest rate available for a three-year tenure in this comparison. Punjab & Sind Bank offers up to 7.35%, while IDFC FIRST Bank's maximum rate is also 7.35%.
Should senior citizens simply pick the highest rate?
Premature withdrawal rules should also be checked before opening the FD, as breaking a deposit before maturity can result in a lower effective interest rate or a penalty.
Another point to remember is deposit insurance. Eligible deposits are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor per bank, subject to the applicable rules.
Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Investors should do their own research or consult a registered financial advisor before making investment decisions.
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