Personal Finance News
4 banks offering 8% and above on FDs for senior citizens after RBI repo rate cut. Full List
11 min read | Updated on December 22, 2025, 16:20 IST
SUMMARY
Utkarsh Small Finance Bank is currently offering up to 8% to senior citizens. The SFB revised its rates recently, effective from December 1, 2025.
Fixed deposits with small finance banks (SFBs) are covered under the RBI’s DICGC scheme.
Fixed deposit (FD) rates in India have dropped significantly this year, mainly due to the repo rate cuts. While most public and private banks have adjusted their rates, small finance banks often offer higher returns, thanks to their unique structure that allows them to attract more deposits and compete with bigger players.
Despite the rate cuts, some small finance banks are still offering 8% and above for senior citizens, making them a good option for those looking to maximise their returns.
Top 4 banks offering highest FD interest rates to senior citizens
| Bank Name | Highest Slab |
|---|---|
| ESAF Small Finance Bank | 8.10 |
| Utkarsh Small Finance Bank | 8.00 |
| Suryoday Small Finance Bank | 8.00 |
| Jana Small Finance Bank | 8.00 |
ESAF Small Finance Bank
ESAF Small Finance Bank is offering up to 8.10% interest on fixed deposits to senior citizens. The bank last revised its interest rates in June this year.
| Period | Normal Rate (%) | Rate for Senior Citizens (%) |
|---|---|---|
| 7 days to 14 days | 2.75% | 3.25% |
| 15 days to 59 days | 3.25% | 3.75% |
| 60 days to 90 days | 3.75% | 4.25% |
| 91 days to 182 days | 4.00% | 4.50% |
| 183 days to 1 year | 4.75% | 5.25% |
| 1 year 1 day to 443 days | 7.25% | 7.75% |
| 444 days | 7.60% | 8.10% |
| 445 days to less than 2 years | 7.25% | 7.75% |
| 2 years to less than 3 years | 7.25% | 7.75% |
| 3 years to less than 5 years | 6.00% | 6.50% |
| 5 years to 10 years | 5.75% | 6.25% |
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank is currently offering up to 8% to senior citizens. The SFB revised its rates recently, effective from December 1, 2025.
| Tenure | General Customers | Senior Citizens |
|---|---|---|
| 7 Days to 45 Days | 4.00% | 4.50% |
| 46 Days to 90 Days | 4.50% | 5.00% |
| 91 Days to 180 Days | 5.00% | 5.50% |
| 181 Days to 370 Days | 6.00% | 6.50% |
| 371 Days to less than 2 Years (729 Days) | 7.25% | 7.75% |
| 2 Years (730 Days) up to 3 Years (1095 Days) | 7.50% | 8.00% |
| Above 3 Years to less than 4 Years | 7.25% | 7.75% |
| 4 Years (1461 Days) up to 5 Years (1826 Days) | 7.00% | 7.50% |
| Above 5 Years to 10 Years | 6.75% | 7.25% |
Suryoday Small Finance Bank
Suryoday Small Finance Bank offers interest rates of up to 8% on FDs for senior citizens. Here is the detailed list of the SFB’s interest rates:
| Period | Interest Rate | Senior Citizen Rate |
|---|---|---|
| 7 Days to 14 Days | 4.00% | 4.20% |
| 15 Days to 45 Days | 4.25% | 4.45% |
| 46 Days to 90 Days | 4.50% | 4.70% |
| 91 Days to 6 Months | 5.00% | 5.20% |
| 6 Month 1 Day | 6.75% | 6.95% |
| Above 6 Month 1 Day to 9 Months | 5.50% | 5.70% |
| Above 9 Months to less than 1 Year | 6.00% | 6.20% |
| 1 Year | 7.25% | 7.45% |
| Above 1 Year to Less than 18 Months | 7.25% | 7.45% |
| 18 Months | 7.50% | 7.70% |
| Above 18 Months to 2 Years | 7.25% | 7.45% |
| Above 2 Years to 3 Years | 7.25% | 7.45% |
| Above 3 Years to less than 5 Years | 6.75% | 6.95% |
| 5 Years | 8.00% | 8.00% |
| Above 5 Years to 10 Years | 7.25% | 7.45% |
Jana Small Finance Bank
Jana Small Finance Bank recently revised its FD interest rates on December 11, 2025. It offers up to 8% on FDs for senior citizens:
| Tenure | Regular FD Interest Rate | Senior Citizen Interest Rate |
|---|---|---|
| 7 – 14 Days | 4.50% | — |
| 15 – 60 Days | 4.50% | 5.25% |
| 61 – 90 Days | 5.25% | 5.25% |
| 91 – 120 Days | 5.25% | 5.25% |
| 121 – 180 Days | 5.25% | 6.00% |
| 181 – 270 Days | 6.00% | 6.50% |
| 271 – 365 Days | 7.00% | 7.00% |
| > 1 Year – 2 Years | 7.50% | 7.25% |
| > 2 Years – 3 Years | 7.75% | 7.50% |
| > 3 Years – < 5 Years | 8.00% | 7.25% |
| 5 Years | 7.75% | 8.00% |
| > 5 Years – 10 Years | 8.00% | 6.50% |
Are FDs with SFBs safe?
Fixed deposits with small finance banks (SFBs) are generally seen as safe, as they’re covered under the Reserve Bank of India’s Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. This means that deposits up to ₹5 lakh are insured. However, because of their unique structure, SFBs come with some additional risks. To stay on the safe side, experts recommend that customers limit their investments in SFBs to ₹5 lakh.
Why have FD rates fallen in 2025?
This year, the RBI has announced a total of four repo rate cuts:
-
February: 25 bps
-
April: 25 bps
-
June: 50 bps
-
December: 25 bps
With these, the cumulative repo cut comes to 1.25% (125 bps). When the repo rate falls, borrowing becomes cheaper for banks, which means borrowing becomes cheaper for customers as well. This is why loans get cheaper after repo rate cuts.
However, repo rate cuts also bring a reduction in FD interest rates, as banks no longer have to offer high interest rates on deposits. This is why FD interest rates have fallen this year.
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