Senior citizens fixed deposit (FD) interest rates: Banks offering highest 5-year deposit returns. Full list

Senior citizens in India continue to enjoy higher fixed deposit (FD) interest rates, with some banks offering up to 8.10% for a 5-year deposit. Small finance banks and private lenders often provide these higher rates to attract senior customers.

Banks offering highest interest rates to senior citizens

Among the public sector banks, the State Bank of India offers the highest interest rate to senior citizens for a 5-year period, at 7.05%. Within private banks, SBM Bank offers a 7.5% interest rate to senior citizens.

From small finance banks, the Suryoday Small Finance Bank offers an 8.10% interest rate to senior citizens for a 5-year period, the highest rate offered currently for a 5-year deposit.

Here are the top 5 government, private and small finance banks offering the highest interest rates to senior citizens on FDs with a 5-year tenure:

Public banks

Private banks

Small finance banks

Source: Bank websites

In its latest Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.5%, prompting most banks to maintain their FD rates as well.

When the RBI lowers the repo rate, banks can borrow at cheaper rates and pass on lower lending rates to customers. As a result, they don’t need to offer high FD interest rates, leading to a drop in deposit rates.

In 2025, the RBI has cut the repo rate three times, totaling 100 basis points, and many banks have adjusted their FD rates downward multiple times in line with these cuts.

Bank deposits up to ₹5 lakh are insured by the RBI’s Deposit Insurance Credit Guarantee Corporation (DICGC). Generally, customers are advised to keep their deposits in small finance banks within this limit to avoid risk due to their unique business model.