FD interest rates up to 9.10%: 15 banks offer 7.80% or more to seniors

Business Standard

30-06-2025

Can you still get over 8 per cent on a fixed deposit? Despite this year's repo rate cuts, the answer is yes—at least for now.
The Reserve Bank of India (RBI) has cut the repo rate by 100 basis points since February 2025. In response, several banks have reduced their fixed deposit (FD) interest rates. But a few small finance and private banks continue to offer interest rates above 7.80 per cent, especially for senior citizens.
Top FD rates as of June 30, 2025
For deposits below Rs 3 crore, some small finance banks are offering relatively high FD rates for senior citizens. As of June 28, 2025, Unity Small Finance Bank is offering the highest FD rate at 9.10 per cent for a tenure of 1001 days. Suryoday Small Finance Bank follows with 8.80 per cent for tenures above 30 months and up to 3 years. Utkarsh Small Finance Bank is offering 8.75 per cent for deposits held between 2 and 3 years. Slice Small Finance Bank is offering 8.50 per cent for a narrowly defined window of 18 months 1 day to 18 months 2 days. Equitas Small Finance Bank offers 8.40 per cent for a tenure of 888 days.
All rates apply to senior citizens and are available on deposits of less than Rs 3 crore. These figures are based on each bank's official website as of June 28, 2025.
Regular depositors can also find rates above 8 per cent, though options are fewer. Experts say locking in the current rate may help, as further cuts could follow if the repo rate continues to drop.
Tax rules on FD interest
Interest earned on fixed deposits is taxable. If the interest exceeds a certain threshold, tax is deducted at source.
'Interest earned on FDs is taxable, with tax deducted at source (TDS) if it exceeds a specified limit,' said Adhil Shetty, CEO of BankBazaar.
The 2025 Union Budget raised the TDS threshold:
For general citizens: From Rs 40,000 to Rs 50,000
For senior citizens: From Rs 50,000 to Rs 1 lakh
Take the example of Nupur, a 38-year-old resident of Noida. She earns Rs 75,000 in annual FD interest. Since the new threshold for general citizens is Rs 50,000, TDS applies on the excess Rs 25,000. At 10 per cent, the deducted tax is Rs 2,500.
That Rs 75,000 also counts as part of her total taxable income. But if her overall income is below Rs 2.5 lakh, she doesn't owe additional tax. To avoid TDS in such a case, she can submit Form 15G at the start of the financial year, declaring her income falls below the taxable limit.
Senior citizens can submit Form 15H for the same purpose.
Take a look at the banks offering the highest interest rate as of June 28, according to PaisaBazaar:
Small Finance Banks
1. Equitas Small Finance Bank
Highest rate: 8.40 per cent for 888 days
1-year: 8.10 per cent
3-year: 8.00 per cent
5-year: 7.75 per cent
10-year: 7.75 per cent
No extra rate for super senior citizens
2. ESAF Small Finance Bank
Highest rate: 8.10 per cent for 444 days
1-year: 5.25 per cent
3-year: 6.50 per cent
5-year: 6.25 per cent
10-year: 6.25 per cent
No extra rate for super senior citizens
3. Jana Small Finance Bank
Highest rate: 8.25 per cent (Above 1 year to 3 years)
1-year: 8.00 per cent
3-year: 8.25 per cent
5-year: 8.20 per cent
10-year: 7.00 per cent
No extra rate for super senior citizens
4. Slice Small Finance Bank
Highest rate: 9.00 per cent (18 months 1 day to 18 months 2 days)
1-year: 7.00 per cent
3-year: 8.25 per cent
5-year: 8.25 per cent
10-year: 6.75 per cent
No extra rate for super senior citizens
5. Suryoday Small Finance Bank
Highest rate: 8.80 per cent (Above 30 months to 3 years)
1-year: 8.30 per cent
3-year: 8.80 per cent
5-year: 8.40 per cent
10-year: 7.65 per cent
No extra rate for super senior citizens
6. Ujjivan Small Finance Bank
Highest rate: 8.25 per cent for 2 years
1-year: 8.15 per cent
3-year: 7.70 per cent
5-year: 7.70 per cent
10-year: 7.00 per cent
No extra rate for super senior citizens
7. Unity Small Finance Bank
Highest rate: 9.10 per cent for 1001 days
1-year: 7.50 per cent
3-year: 8.50 per cent
5-year: 8.50 per cent
10-year: 7.50 per cent
No extra rate for super senior citizens
8. Utkarsh Small Finance Bank
Highest rate: 8.75 per cent (2 to 3 years)
1-year: 6.75 per cent
3-year: 8.75 per cent
5-year: 8.25 per cent
10-year: 7.75 per cent
No extra rate for super senior citizens
Private Sector Banks
9. Bandhan Bank
Highest rate: 8.25 per cent for 1 year
1-year: 8.25 per cent
3-year: 7.75 per cent
5-year: 6.60 per cent
10-year: 6.60 per cent
No extra rate for super senior citizens
10. CSB Bank
Highest rate: 7.90 per cent for 13 months
1-year: 5.50 per cent
3-year: 6.25 per cent
5-year: 6.25 per cent
10-year: 6.50 per cent
No extra rate for super senior citizens
11. DCB Bank
Highest rate: 7.90 per cent (25 to 26 months)
1-year: 7.25 per cent
3-year: 7.25 per cent
5-year: 7.25 per cent
10-year: 7.25 per cent
No extra rate for super senior citizens
12. Jammu & Kashmir Bank
Highest rate: 7.80 per cent for 888 days
1-year: 7.25 per cent
3-year: 7.25 per cent
5-year: 7.00 per cent
10-year: 7.00 per cent
No extra rate for super senior citizens
13. RBL Bank
Highest rate: 7.80 per cent for 500 days
1-year: 7.60 per cent
3-year: 7.60 per cent
5-year: 7.50 per cent
10-year: 7.50 per cent
Super senior citizens get +0.25 per cent on all tenures
14. SBM Bank India
Highest rate: 8.55 per cent (Above 18 months to less than 2 years 3 days)
1-year: 8.00 per cent
3-year: 7.80 per cent
5-year: 8.25 per cent
10-year: 7.50 per cent
No extra rate for super senior citizens
15. YES Bank
Highest rate: 7.85 per cent (3 years to less than 5 years)
1-year: 7.25 per cent
3-year: 7.85 per cent
5-year: 7.50 per cent
10-year: 7.50 per cent