Highest fixed deposit interest rates for senior citizens in June 2025: Govt, private banks and SFBs compared

Interest rates on fixed deposits (FDs) are expected to fall soon, in line with the recent repo rate cut announced by the Reserve Bank of India (RBI). The RBI cut the key interest rate by 50 basis points (bps) on June 6, 2025, bringing it down to the lowest in three years of 5.5%. This is the third consecutive repo rate reduction seen in this year.

Repo rate is the rate at which banks borrow from the RBI. After a repo rate cut, borrowing gets cheaper for banks. Due to this, banks and other financial institutions reduce their lending rates, along with their FD interest rates. With this jumbo repo rate cut, banks are now expected to cut deposit interest rates soon. This is important for investors who rely on FDs to save their money.

Even for senior citizens, the FD interest rates will see a reduction. If you are someone who invests in FDs, you can lock in an FD at a higher interest rate currently before rates decline in the coming months.

Several banks are still offering interest rates of up to 9.1% on FDs below ₹3 crore for senior citizens.

Let’s take a look at the five highest FD rates offered by banks in June 2025 for senior citizens. These rates are sorted by the highest slab.

Public sector banks

Private sector banks

Small finance banks

Banks have already been introducing FD interest rate cuts since February 2025, after the RBI cut the repo rate by 25 bps. Similarly, in April, the central bank announced a 25 bps repo rate cut, and banks started to lower their FD interest rates. Most banks have cut their FD interest rates twice since April. Further, banks have cut FD rates by 30 to 70 bps since February, according to a report by SBI research. Now, rates are expected to decrease even further. So, you can book an FD at higher interest rates now before revised rates are implemented.