While big banks have reduced FD interest rates after the repo rate cut, some small finance banks are still offering attractive interest rates of up to 9.10 percent. This may be a good time for senior citizens to invest in fixed deposits as these schemes can give them risk-free returns.
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Best FD for Senior Citizens: RBI cut the repo rate by 25 basis points on 9 April 2025. Due to this, big banks like SBI, HDFC, ICICI, Yes Bank have cut their fixed deposit (FD) interest rates. This has caused loss to common investors and especially senior citizens, who expect safe returns on FD. However, there are still some banks which are giving up to 9 percent return to senior citizens on FD. If you are eligible for this, then you can take advantage of it.
Small banks are giving more interest
Unlike big banks, some small finance banks are still offering attractive interest rates ranging from 8% to 9.10%. These banks are offering special schemes to attract long term deposits.
| Name of the Bank | Rate of Interest (%) (Senior Citizen) | Deposit Period |
|---|---|---|
| Unity Small Finance Bank | 9.10% | 1001 days |
| Suryoday Small Finance Bank | 9.10% | 5 years |
| Jana Small Finance Bank | 8.75% | 2 to 3 years |
| Equitas Small Finance Bank | 8.55% | 888 days |
| AU Small Finance Bank | 8.25% | 18 months |
Good opportunity for senior citizens
Senior citizens can get special benefits in these schemes. When most banks in the market are reducing interest rates, these FD options are an opportunity to get safe and better returns.
Things to keep in mind before investing
Before investing, make sure that the concerned bank is authorised by RBI and has DICGC insurance cover which comes up to Rs 5 lakh. Also, understand that these special interest rates may be for a limited period. Take time to understand all the rules while investing.
