According to the latest data from Paisabazaar.com as of September 16, 2026, small finance banks are now offering the highest senior citizen FD rates at up to 8.50%, while Bank of India leads among major public sector banks at 7.45% - the highest rate among major banks. ESAF Small Finance Bank and Suryoday Small Finance Bank continue to offer 8.50% rates, though the applicable tenures differ significantly. ESAF Small Finance Bank offers 8.5% on exactly 800-day deposits (effective August 17, 2026) for resident term deposits below ₹300 lakh, while Suryoday Small Finance Bank provides 8.5% on its five-year Tax Saver Fixed Deposit with a five-year lock-in for resident individuals aged 60 years and above. Jana Small Finance Bank offers 8.3% for deposits above 2 years to 3 years, Ujjivan Small Finance Bank provides 8.3% for deposits of 3 years and 1 day to 3 years and 6 months (effective September 1, 2026) with an additional 0.50 percentage point for senior citizens, and Shivalik Small Finance Bank offers 8.25% for callable FDs with 23 months and 1 day to 27 months tenure. Utkarsh Small Finance Bank provides 8.25% on a 666-day FD and 8% for two-year to three-year tenure. Among traditional banks, City Union Bank offers 7.50% for 555-day deposits, followed by Karnataka Bank at 7.40% and Bank of Baroda providing 7.25% under its Golden Goal Deposit Scheme. The difference between the highest and lowest annual interest rates amounts to ₹2,250 in this simple calculation.
The latest data reveals significant variations in interest rates across different tenures and bank categories. Small finance banks offer the highest returns, with ESAF Small Finance Bank providing ₹37,500 annual interest at 8.50% for its Maxima FD, Suryoday Small Finance Bank offering ₹37,000 at 8.50% for its five-year Tax Saver FD, and Jana Small Finance Bank providing ₹35,750 at 8.30% for deposits above 2 years to 3 years. Ujjivan Small Finance Bank offers ₹35,750 at 8.30% for deposits of 3 years and 1 day to 3 years and 6 months, while Shivalik Small Finance Bank provides ₹35,250 at 8.25% for callable FDs with 23 months and 1 day to 27 months tenure. Utkarsh Small Finance Bank offers ₹35,250 at 8.25% on a 666-day FD and ₹31,250 at 8% for two-year to three-year tenure. Among traditional banks, City Union Bank offers ₹37,500 at 7.50% for 555-day deposits, Karnataka Bank provides ₹37,000 at 7.40%, and Bank of Baroda offers ₹36,250 at 7.25% under its Golden Goal Deposit Scheme. The highest rate does not apply across all FD periods - for example, Suryoday's 8.50% rate is available for 5-year deposits only, while its 1-year and 3-year rates are 7.40%. As per NDTV Profit, rates differ according to tenure and product, and senior citizens must compare the applicable rate with the lock-in period and premature-withdrawal rules before booking an FD.
According to the latest Mint analysis, Bank of India leads among major public sector banks at 7.45% for senior citizens, with Punjab & Sind Bank ranking second at 7.35% and Bank of Baroda and Central Bank of India each showing 7.25%. Bank of Maharashtra and Indian Bank have peak rates of 7.15%, while Canara Bank, Indian Overseas Bank and Punjab National Bank each list 7.10%. State Bank of India and Union Bank of India show 7.05%, and UCO Bank has the lowest peak rate in this comparison, at 6.95%. The gap between the highest and lowest peak rates is modest, with ₹500 yearly difference for ₹1 lakh and ₹2,500 for ₹5 lakh before tax. For example, Bank of India's 7.45% rate on ₹1 lakh investment would yield ₹7,450 per year, while UCO Bank's 6.95% rate would result in ₹6,950. As per Mint, the highest advertised rate does not apply to every deposit period, and readers should confirm rates with their bank before depositing money.
Among private sector banks, DCB Bank offers the highest rate at 8%, followed by Bandhan Bank at 7.95% and IndusInd Bank at 7.75%. YES Bank offers up to 7.75%, while RBL Bank offers up to 7.70% for deposits with a tenure of 18 months to three years. IDFC FIRST Bank provides 7.35% interest on FDs, with the highest rate applying to select deposits between 500 days and three years. Kotak Mahindra Bank offers 7.30% on deposits with a tenure of two years to less than three years. These private banks demonstrate competitive rates compared to their public sector counterparts, with DCB Bank's 8% rate representing the highest among all banks covered in the current analysis.
The latest data reveals significant variations in interest rates across different tenures and bank categories. For one year deposits, Bank of India and Indian Overseas Bank lead with 7%, with ₹1 lakh earning ₹7,000 before tax without compounding. Bank of Maharashtra follows at 6.90%, giving ₹6,900 on the same basis. Several banks, including the State Bank of India, offer 6.75% for one year, while Punjab & Sind Bank and UCO Bank offer the lowest yearly rate, at 6.35% - ₹6,350 on ₹1 lakh. For three years, the Bank of India leads at 7.45% annually, with ₹1 lakh earning ₹22,350 over three years, totaling ₹1,22,350 before tax without compounding. For five years, the State Bank of India leads at 7.05%, with ₹1 lakh earning ₹35,250 over five years, totaling ₹1,35,250 before tax. Bank of Baroda follows with a five-year rate of 6.90%, and Bank of Maharashtra offers 5.50% for five years, the lowest figure among major banks. As per Mint, keeping money longer does not always mean higher yearly interest, and actual earnings can differ when interest is added back to the deposit through compounding.
A significant development in the senior citizen FD market is the introduction of additional interest rates for super senior citizens aged 80 or more. As per Paisabazaar.com data, some banks offer extra interest over and above the standard senior citizen rates for those aged 80 years and above. This additional benefit can make bank FDs even more attractive for older investors seeking predictable income. However, the highest rates are generally linked to specific tenures, so comparing rates across the period for which the money is to be invested remains crucial for investment decisions.
