Senior citizens can earn up to 8.50% a year on fixed deposits in October 2026, but only at a few small finance banks and only on select tenures. Public sector bank senior citizen FD rates top out at 7.45% (Bank of India), and HDFC Bank and ICICI Bank pay 7.10%. This guide lists the rates of every public sector, private and small finance bank, shows what the difference means in rupees, and covers tax, safety and how to choose a tenure. Figures are as of 1 to 5 October 2026, before the RBI raised the repo rate to 5.50% on 7 October.
NRI deposit rates: NRE FD rates 2026.
Related: post office vs bank FD rates 2026.
Senior Citizen FD Rates by Bank (October 2026)
This is the full list: all 12 public sector banks, 23 private banks and 10 small finance banks. These senior citizen FD rates are for people aged 60 and above on deposits below ₹3 crore. The last column is the highest rate the bank pays on any tenure, which is often a special tenure such as 444 or 501 days and not the 1, 3 or 5-year rate.
Public sector banks
| Bank | 1 year | 3 years | 5 years | Highest tenure rate |
|---|---|---|---|---|
| State Bank of India | 6.75% | 6.80% | 7.05% | 7.05% |
| Bank of Baroda | 6.75% | 6.75% | 6.90% | 7.25% |
| Bank of India | 7.00% | 7.45% | 6.75% | 7.45% |
| Bank of Maharashtra | 6.90% | 5.75% | 5.50% | 7.15% |
| Canara Bank | 6.75% | 6.75% | 6.75% | 7.10% |
| Central Bank of India | 6.60% | 6.50% | 6.50% | 7.25% |
| Indian Bank | 6.60% | 6.55% | 6.50% | 7.15% |
| Indian Overseas Bank | 7.00% | 6.60% | 6.60% | 7.10% |
| Punjab National Bank | 6.75% | 6.80% | 6.60% | 7.10% |
| Punjab & Sind Bank | 6.35% | 6.35% | 6.45% | 7.35% |
| UCO Bank | 6.35% | 6.50% | 6.50% | 6.95% |
| Union Bank of India | 6.70% | 6.60% | 6.50% | 7.05% |
Source: Paisabazaar, updated 1 October 2026.
Private banks
| Bank | 1 year | 3 years | 5 years | Highest tenure rate |
|---|---|---|---|---|
| Axis Bank | 6.75% | 7.00% | 7.25% | 7.25% |
| Bandhan Bank | 7.50% | 7.75% | 6.60% | 7.95% |
| CSB Bank | 5.25% | 6.00% | 6.00% | 7.35% |
| City Union Bank | 6.90% | 6.75% | 6.75% | 7.50% |
| DBS Bank | 6.80% | 6.90% | 6.75% | 7.35% |
| DCB Bank | 7.15% | 7.25% | 8.00% | 8.00% |
| Dhanlaxmi Bank | 6.75% | 7.00% | 7.00% | 7.75% |
| Federal Bank | 6.75% | 7.00% | 6.90% | 7.20% |
| HDFC Bank | 6.75% | 6.95% | 6.90% | 7.10% |
| ICICI Bank | 6.75% | 6.95% | 6.90% | 7.10% |
| IDBI Bank | 6.70% | 6.85% | 6.75% | 7.05% |
| IDFC FIRST Bank | 6.75% | 7.35% | 7.00% | 7.35% |
| IndusInd Bank | 7.25% | 7.75% | 7.15% | 7.75% |
| J&K Bank | 7.05% | 7.20% | 7.25% | 7.55% |
| Karnataka Bank | 6.90% | 6.55% | 6.55% | 7.40% |
| Karur Vysya Bank | 6.95% | 6.95% | 6.95% | 7.20% |
| Kotak Mahindra Bank | 7.00% | 6.90% | 6.75% | 7.15% |
| Nainital Bank | 6.25% | 6.75% | 6.25% | 7.10% |
| RBL Bank | 7.50% | 7.70% | 7.20% | 7.70% |
| SBM Bank | 7.60% | 7.60% | 7.50% | 8.15% |
| South Indian Bank | 6.85% | 6.70% | 6.20% | 7.30% |
| Tamilnad Mercantile Bank | 7.30% | 7.20% | 7.20% | 7.70% |
| YES Bank | 7.15% | 7.75% | 7.50% | 7.75% |
Source: Paisabazaar, updated 1 October 2026; SBM, DCB, Bandhan, YES, HDFC and ICICI figures match Upstox’s 5 October table.
Small finance banks
| Bank | 1 year | 3 years | 5 years | Highest tenure rate |
|---|---|---|---|---|
| Equitas Small Finance Bank | 7.60% | 7.60% | 7.50% | 8.50% |
| ESAF Small Finance Bank | 6.50% | 6.50% | 6.25% | 8.50% |
| Suryoday Small Finance Bank | 7.40% | 7.40% | 8.50% | 8.50% |
| Jana Small Finance Bank | 7.50% | 8.30% | 7.77% | 8.30% |
| Ujjivan Small Finance Bank | 7.75% | 7.75% | 7.70% | 8.30% |
| Utkarsh Small Finance Bank | 6.50% | 8.00% | 7.50% | 8.25% |
| AU Small Finance Bank | 6.85% | 7.90% | 7.25% | 7.90% |
| Unity Small Finance Bank | 8.00% | 7.25% | 7.25% | 8.50% |
| Shivalik Small Finance Bank | 7.25% | 8.00% | 6.75% | 8.50% |
| North East Small Finance Bank | 7.30% | 7.30% | 6.80% | 7.50% |
Sources: Upstox News Desk, 5 October 2026 (Equitas to AU); Unity (revised 15 July 2026), Shivalik (17 June 2026) and North East (6 August 2026) from the banks’ published rate changes, so these three may have moved since. Their 1-year, 3-year and 5-year figures are the start of each tenure band; check the bank for the exact band. Capital Small Finance Bank is not listed because no current senior rate could be confirmed.
Banks change senior citizen FD rates without notice, so confirm the current rate on the bank’s website or app before you book. Our SBI FD calculator shows the maturity amount for any SBI tenure.
How Much Extra Do You Earn at 8.5%?
Take ₹10,00,000 placed for 5 years with quarterly compounding:
| Rate | Maturity value | Interest earned |
|---|---|---|
| 8.50% (top small finance bank rate) | ₹15,22,795 | ₹5,22,795 |
| 7.10% (HDFC Bank, ICICI Bank) | ₹14,21,747 | ₹4,21,747 |
The higher rate earns about ₹1.01 lakh more over 5 years. Run your own numbers in the FD calculator. If you prefer monthly income, a payout FD at 8.5% on ₹10 lakh gives roughly ₹7,000 a month before tax, slightly less than the cumulative figure above because interest is not reinvested.
Are Small Finance Bank FDs Safe?
Small finance banks are scheduled banks regulated by the Reserve Bank of India, and their deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor per bank, covering principal and interest together. Larger banks are insured to the same limit, so the insurance does not differ. What differs is the size and track record of the institution.
A practical approach is to keep each deposit within the ₹5 lakh cover at any one bank and spread larger amounts across several banks. Chasing the last 0.25% at a smaller lender is rarely worth the added risk for money you cannot afford to lose.
Tax on Senior Citizen FD Interest
Interest earned at senior citizen FD rates is added to your income and taxed at your slab rate. Banks deduct TDS only when a senior citizen’s interest at one bank crosses ₹1,00,000 in a financial year (the limit for others is lower). If your total income is below the taxable limit, you can submit Form 15H to avoid TDS. Under the old tax regime, senior citizens can also claim a deduction of up to ₹50,000 on interest from savings accounts and deposits under Section 80TTB. This deduction is not available under the new regime, so compare both regimes before you file.
FD vs Senior Citizen Savings Scheme
The Senior Citizen Savings Scheme (SCSS) pays 8.2% for October to December 2026, backed by the government, with a 5-year term and a ₹30 lakh limit. That beats every large bank FD in the table above and matches most small finance banks without the credit risk. Many seniors fill the SCSS limit first and use bank FDs for the rest. Read the SCSS guide and track all small savings rates on our interest rate tracker.
How to Choose the Right Tenure
Do not choose among senior citizen FD rates on the highest figure alone. Several banks pay their top rate only on one tenure. Suryoday offers 8.50% on 5 years but 7.40% on 1 and 3 years, while Jana pays 8.30% on 3 years but 7.50% on 1 year. Match the tenure to when you will need the money, because breaking an FD early usually cuts the rate or adds a penalty. Splitting a large sum into several FDs of different tenures (a ladder) keeps part of it available every year. For the history behind today’s rates, see our FD interest rate history and the full list of best FD rates in India.
What the RBI Repo Rate Hike on 7 October Means for FD Rates
On 7 October 2026 the RBI raised the repo rate by 25 basis points to 5.50% and changed its stance to calibrated tightening. Banks usually adjust senior citizen FD rates a few weeks after a rate change, so deposit rates may drift higher, but each bank moves on its own timetable. The rates in this table are as of 1 to 5 October, before the hike, and we will refresh them as banks reprice. Read our RBI repo rate hike guide for FDs and EMIs.
SBI Senior Citizen FD Rates
State Bank of India pays senior citizens 6.75% on a 1-year deposit, 6.80% on 3 years and 7.05% on 5 years. SBI also runs special deposit schemes for super senior citizens, which Stable Money lists at up to 7.15%. See the full table above or work out your own maturity amount in our SBI FD calculator.
Highest FD Rate for Senior Citizens in Public Sector Banks
Among the 12 public sector banks, Bank of India pays the most at 7.45%, followed by Punjab & Sind Bank at 7.35%, and Bank of Baroda and Central Bank of India at 7.25% each. All of them pay less than the small finance banks, but they offer government ownership and wide branch networks.
Best Senior Citizen FD Rates for 5 Years
| Bank | 5-year senior citizen rate |
|---|---|
| Suryoday Small Finance Bank | 8.50% |
| DCB Bank | 8.00% |
| Jana Small Finance Bank | 7.77% |
| Ujjivan Small Finance Bank | 7.70% |
| Equitas Small Finance Bank | 7.50% |
| State Bank of India | 7.05% |
A 5-year tax-saver FD qualifies for a deduction under the old tax regime, with a 5-year lock-in. Check the bank’s tax-saver FD rate, which can differ from the regular 5-year rate.
Super Senior Citizen FD Rates (Age 80 and Above)
Some banks run separate schemes for customers aged 80 and above, for example RBL Bank’s Akshay Nidhi at up to 7.95% for 18 to 36 months and IDBI’s Chiranjeevi scheme at 7.05% to 7.10%, per Stable Money. Ask your bank whether an 80+ rate applies before you book.
Frequently Asked Questions
Which bank gives the highest FD rate to senior citizens?
As of 5 October 2026, Equitas, ESAF, Suryoday, Unity and Shivalik small finance banks pay the highest rate to senior citizens at 8.50%, each on a specific tenure. Among larger banks, SBM Bank pays 8.15% and DCB Bank 8.00%.
Is it safe to put a fixed deposit in a small finance bank?
Small finance banks are RBI-regulated and their deposits are insured up to ₹5 lakh per depositor per bank, the same as other banks. Keep each deposit within that limit or spread larger sums across banks.
Is FD interest taxable for senior citizens?
Yes. Interest is taxed at your slab rate. TDS applies only when interest at one bank crosses ₹1,00,000 in a year, and you can submit Form 15H if your income is below the taxable limit.
Is SCSS better than a bank FD for senior citizens?
SCSS pays 8.2% with government backing and a ₹30 lakh limit, which is higher than large-bank FDs and close to small finance bank rates. FDs offer shorter tenures and no deposit cap.
Can I get monthly interest on a senior citizen FD?
Yes. Most banks offer monthly, quarterly or cumulative payout options. Monthly payout gives regular income but a slightly lower total return than reinvesting.
This article is general information, not investment advice. Check current rates and terms with the bank before you invest.