Senior Citizen FD Rates 2026: Select Small Finance Banks Offer Up To 8.5% Interest On Fixed Deposits
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An interest rate of up to 8.5% is available to senior citizens at select small finance banks. The RBI’s reported repo rate increase to 5.50% could lead to changes in deposit rates. (The published rates are dated 7 October 2026.)
The Reserve Bank of India (RBI) reportedly raised the repo rate by 25 basis points to 5.50% at its Monetary Policy Committee meeting on 7 October. The increase could prompt banks to reassess the interest rates they pay on fixed deposits (FDs).
The rates show a wide gap between the highest slabs offered by different lenders. Small finance banks feature among the banks offering higher interest rates. At private, public sector and foreign banks, the rate depends on the deposit duration.
Small Finance Banks Offer The Highest Rates
Equitas Small Finance Bank, ESAF Small Finance Bank and Suryoday Small Finance Bank list maximum senior citizen FD rates of 8.5% per annum. The qualifying deposit periods differ, so the headline figure does not apply to every tenure.
Bank | 1-year rate | 3-year rate | 5-year rate |
|---|---|---|---|
Equitas Small Finance Bank | 7.6% | 7.6% | 7.5% |
ESAF Small Finance Bank | 6.5% | 6.5% | 6.25% |
Suryoday Small Finance Bank | 7.4% | 7.4% | 8.5% |
Jana Small Finance Bank | 7.5% | 8.3% | 8.0% |
Ujjivan Small Finance Bank | 7.75% | 7.75% | 7.7% |
Private Banks Show Differences Across Tenures
DCB Bank lists a maximum rate of 8%, followed by Bandhan Bank at 7.95% and SBM Bank India at 7.8%. The returns offered for individual durations can differ considerably from these highest slabs.
Bank | Highest slab | 1-year rate | 3-year rate | 5-year rate |
|---|---|---|---|---|
DCB Bank | 8.0% | 7.15% | 7.25% | 8.0% |
SBM Bank India | 7.8% | 7.6% | 7.6% | 7.5% |
Bandhan Bank | 7.95% | 7.5% | 7.75% | 6.6% |
IndusInd Bank | 7.75% | 7.25% | 7.75% | 7.15% |
YES Bank | 7.75% | 7.15% | 7.75% | 7.5% |
Public Sector And Foreign Bank Rates
Bank of India offers the highest slab of 7.45%, while Bank of Baroda and Central Bank of India list 7.25%. Among foreign lenders, Standard Chartered Bank lists 7.1%, Deutsche Bank 7% and HSBC 6%.
These figures reflect the rates listed in the supplied tables, not necessarily the rates available when a deposit is booked.
When Will Banks Change FD Rates?
An RBI announcement does not necessarily bring an immediate revision in deposit rates. Some banks may respond within a short time. Others could delay the move until they need to reassess their funding requirements. The impact of the reported repo rate hike will ultimately rest on decisions made by individual lenders.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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