Indian banks offer up to 8.5% interest on senior citizen FDs

Senior citizens in India are increasingly utilizing Fixed Deposits (FD) as a reliable investment tool to ensure capital security and regular cash flow during retirement. According to Reserve Bank of India (RBI) guidelines, commercial banks typically offer senior citizens (aged 60 and above) an additional interest rate of 0.50% to 0.75% compared to general customers.

While major public and private sector banks offer rates ranging from 7.00% to 7.75%, several scheduled Small Finance Banks (SFBs) are providing higher returns. Unity Small Finance Bank offers up to 8.50% per annum for special tenures of 501 and 1001 days. Shivalik Small Finance Bank provides 8.50% for durations between 23 and 27 months, and Utkarsh Small Finance Bank offers between 8.25% and 8.50% for tenures ranging from 666 days to 3 years. Suryoday Small Finance Bank also provides competitive rates for selected tenures between 2 and 3 years.