Attractive Fixed Deposit Rates for Senior Citizens in 2026

Overview of Fixed Deposit Rates for Senior Citizens

Senior citizens, defined as individuals aged 60 and above, can still benefit from favorable interest rates on fixed deposits (FDs). As of January 2026, several small finance banks are offering enticing returns of between 7.5% and 8% on three-year FDs. This is significantly higher than the rates provided by major banks like SBI, HDFC, and ICICI, which typically range from 6.9% to 7.2% for the same tenure.

Important Notes on Fixed Deposit Rates

These interest rates apply to deposits up to ₹3 crore and are based on the latest information available as of mid-January 2026, sourced from various financial platforms. Rates are subject to change, so it is advisable to verify with the bank's official website or branch. Additionally, the DICGC insurance covers deposits up to ₹5 lakh, so it is prudent to distribute larger amounts across multiple banks.

Top Fixed Deposit Offers for Senior Citizens

Here are some of the leading small finance banks providing the best returns:

1. Utkarsh Small Finance Bank — 8% p.a. for a three-year tenure.
   
   

   
   
   • One of the most attractive options for senior citizens.
   
   

   
   



2. Jana Small Finance Bank — 7.77% to 8% p.a. for three years.
   
   

   
   
   • Recent reports indicate rates revised to between 7.5% and 8%.
   
   

   
   



3. Suryoday Small Finance Bank — 8% p.a. for tenures of 2-3 years or 3-5 years.
   
   

   
   
   • High rates for longer tenures.
   
   

   
   



4. Shivalik Small Finance Bank — 8% p.a. for select tenures of 2-5 years.


5. ESAF Small Finance Bank — 8% p.a. for 2-3 years, with rates up to 8.10% for 444 days.

Other Notable Options

• Slice Small Finance Bank — 7.5% p.a. for three years.


• Ujjivan Small Finance Bank — 7.95% p.a. for two years, with higher rates for three years.


• AU Small Finance Bank — 7.6% p.a. for 24-36 months.

For comparison with larger banks:

• ICICI Bank: ~7.1% for three years.


• HDFC Bank: ~6.95%.


• SBI: ~6.8-7% (slightly higher for special schemes).

Why Small Finance Banks Offer Higher Rates?

These banks operate at the grassroots level and offer higher rates to attract deposits. However, they are considered to carry slightly more risk, although DICGC coverage is available.

If you are considering a three-year FD, banks like Utkarsh, Jana, or Suryoday could be excellent choices. Before investing, assess your needs regarding liquidity and amount, and keep in mind that senior citizens are exempt from TDS on interest up to ₹50,000.