Interest Rates for Senior Citizen Fixed Deposits in India, 2025
In today's financial landscape, senior citizens in India have a variety of options to secure their savings and earn competitive returns. One such option is the Senior Citizen Fixed Deposit (FD) scheme, which offers attractive interest rates and flexible tenures.
To open a Senior Citizen Fixed Deposit account, individuals must be aged 60 years and above. The process is straightforward and can be completed online, making it accessible and convenient. You can access the bank or Non-Banking Financial Company's (NBFC) website or mobile app, fill out the online application form, upload necessary documents, and transfer the deposit amount.
The documents required for opening a Senior Citizen Fixed Deposit account include a fixed deposit account opening form, photo identity proof, age proof, address proof, PAN Card, Aadhaar Card, and utility bills or rent agreement or property deeds.
Resident Indians and Non-Resident Indians (NRIs) can opt for a Senior Citizen Fixed Deposit scheme. Among the major banks, State Bank of India (SBI) offers senior citizens a maximum interest rate of 7.10% per annum for tenures such as 1 year to less than 2 years, 2 years to less than 3 years, and the Amrit Vrishti (444 Days) scheme.
However, for those seeking higher returns, small finance banks are currently offering the top Senior Citizen Fixed Deposit rates. As of 2025, Equitas Small Finance Bank offers up to 8.40% interest for a fixed deposit tenure of 888 days for senior citizens for deposits below Rs 3 crore. Slice Small Finance Bank provides a high FD interest rate of up to 8.5%, while Unity Small Finance Bank offers an interest rate of 8.60% for a tenure of 1001 days. Suryoday Small Finance Bank offers an interest rate of 8.40% for a tenure of 30-36 months, and Utkarsh Small Finance Bank offers 8.25% for a tenure of 2-3 years.
It's essential to note that interest up to ₹50,000 earned from saving accounts, bank fixed deposits, or post-office fixed deposits is tax-free for senior citizens under Section 80 TTB of the Income Tax Act, 1961.
Moreover, Senior Citizen FDs can also be used as collateral for taking a loan, making them valuable assets. Bajaj Finance fixed deposits, for instance, have strong financial ratings of CRISIL AAA (Stable) and ICRA AAA (Stable).
For those looking to invest in a Senior Citizen FD to earn the best FD rates, platforms like ET Money provide an easy and convenient option.
In conclusion, Senior Citizen FDs offer a reliable and lucrative way for senior citizens to secure their savings and earn competitive returns. With the convenience of online application and the attractive rates offered by small finance banks, these schemes are worth considering for senior citizens seeking financial security.
In the realm of personal-finance and investing, senior citizens in India can consider the Senior Citizen Fixed Deposit (FD) scheme as an option for securing their savings and earning competitive returns, especially with the attractive rates offered by small finance banks. Online platforms like ET Money provide an effortless method for individuals to invest in a Senior Citizen FD and gain access to the best FD rates.
