Bank FD Rates: These banks are giving 9.1% interest on FD to senior citizens, check the rates

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Bank FD Rates: If you are a senior citizen and are looking for safe investment options, then bank FDs can be a great opportunity for you. Currently, some small finance banks are offering attractive interest rates of up to 9.1% on FDs with a tenure of three years.

Note, these interest rates are applicable on FDs of less than Rs 3 crore. While all banks are reducing interest rates on FDs, these banks are still offering interest rates above 9% to senior citizens.

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These banks are getting the highest interest rates

Utkarsh Small Finance Bank: 9.1% interest rate

Northeast Small Finance Bank: 9% interest rate

Jana Small Finance Bank: 8.75% interest rate

Suryoday Small Finance Bank: 8.75% interest rate

Unity Small Finance Bank: 8.65% interest rate

Equitas Small Finance Bank: 8.25% interest rate

(Source: Paisabazaar.com, as of 23 April 2025)

This time is considered right for investing in FD because Reserve Bank of India (RBI) has cut the repo rate and many big banks have reduced their FD interest rates.

Caution is necessary while investing in small finance banks

Although deposits in small finance banks up to Rs 5 lakh are protected under the Deposit Insurance Credit Guarantee Corporation (DICGC), still be a little cautious while investing in these banks. Keep the investment amount within the coverage limit of DICGC so that in case of any untoward incident, you can get your money back.

Senior citizens can fill Form 15H to save TDS

As per Budget 2025, TDS will now be deducted on FDs with a bank if the interest earned is more than Rs 1 lakh. But if your total tax liability is zero, you can avoid TDS deduction by submitting Form 15H. Form 15H is valid only if your tax liability is zero after all deductions (like 80C, 80D etc.), even if your total income is more than Rs 3 lakh. If you want safe and good returns for the next three years, then this could be a great opportunity for FDs.

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