return to news
  1. Upstox
    /
  2. News
    /
  3. Personal Finance News
    /
  4. Investing
    /
  5. Senior citizens can get up to 8.50% on FDs: Why the highest rate may not be the best choice

Personal Finance News

Senior citizens can get up to 8.50% on FDs: Why the highest rate may not be the best choice

image Sangeeta Ojha
By Sangeeta Ojha

3 min read | Updated on September 16, 2026, 08:40 IST

Google
SelectUpstoxas yourPreferred news source
Copy link
Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

Senior citizens can get up to 8.50% on fixed deposits from small finance banks. Check FD rates and why tenure, safety, liquidity and withdrawal rules matter.

Senior citizens can get up to 8.50% on FDs

For senior citizens, the additional interest offered by banks can make FDs an important part of their fixed-income strategy. However, the rate can vary depending on the bank and the tenure.

Fixed deposit rates continue to remain competitive, with small finance banks offering some of the higher rates currently available to investors.

Suryoday Small Finance Bank is offering up to 8.25% for general citizens and 8.50% for senior citizens. Jana Small Finance Bank is offering 8.00% and 8.30%, respectively, while Shivalik Small Finance Bank is offering 8.00% for general citizens and 8.25% for senior citizens.

Open FREE Demat Account within minutes!
Join now

Ujjivan Small Finance Bank is offering up to 7.80% for general citizens and 8.30% for senior citizens, while AU Small Finance Bank is offering 7.40% and 7.90%, respectively.

According to Saurabh Jain, Co-founder & CEO, Stable Money, small finance banks continue to offer some of the highest FD returns.

“Fixed deposit rates remain competitive across banks and tenures, with small finance banks continuing to offer some of the highest returns,” Jain said.

He added that investors should not choose an FD solely on the basis of the highest interest rate.

“However, the highest rate is not always the best choice. Investors should consider the tenure, the bank offering the rate and how the FD fits into their overall savings goals,” Jain said.

For investors looking to spread their savings, Jain said diversifying across banks and tenures could help balance returns, safety and liquidity.

“Spreading deposits across banks and tenures can help balance returns, safety and liquidity,” he said.

Investors should also keep deposit insurance in mind. Deposits with banks are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor per bank, including principal and interest.

“Booking FDs in stages can help investors take advantage of prevailing rates while maintaining flexibility,” Jain added.

The FD rate environment could also get more attention in the coming months after SBI Research recommended that the Reserve Bank of India raise the repo rate by 25 basis points in October and another 25 basis points in December. The research report cited elevated crude oil prices, external shocks and emerging inflationary pressures as reasons for the proposed hikes. The RBI has kept the repo rate unchanged at 5.25% for four consecutive meetings. Its next Monetary Policy Committee meeting is scheduled for October 5-7.For FD investors, any change in the RBI's interest-rate cycle could influence lending and deposit rates offered by banks, although the actual impact will depend on how individual banks respond.
For senior citizens, the additional interest offered by banks can make FDs an important part of their fixed-income strategy. However, the rate can vary depending on the bank and the tenure.

Before booking an FD, investors should therefore compare the interest rate, tenure, premature withdrawal terms and the bank offering the deposit rather than looking at the headline rate alone.

For all personal finance updates, visit here
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.

About The Author

image Sangeeta Ojha
Sangeeta Ojha is a business and finance journalist with experience across leading media platforms like Mint and India Today. She has built a reputation for covering a wide range of personal finance topics, including income tax, mutual funds, insurance, savings and investing.

Next Story