Get Up to 9.25% FD Returns in These 7 Banks Retirement should be peaceful, not stressful. But with rising costs and limited income, many seniors find it hard to make ends meet. What if there was a safe, guaranteed way to earn up to 9.25% interest on your savings—without any risk?
Fixed Deposits (FDs) are a lifeline for senior citizens, offering higher interest rates than regular savings accounts. And right now, some banks are offering exceptional rates—perfect for securing a steady monthly income.
Why FDs Are the Best Investment for Senior Citizens
If you’re looking for safe, predictable returns, FDs are a top choice. Here’s why:
- Guaranteed returns – No market risks, unlike stocks or mutual funds.
- Higher interest rates – Banks offer 0.25% to 0.75% extra for seniors.
Monthly income option – Choose to receive interest payouts every month. - Govt-backed security – Deposits up to ₹5 lakh are insured by DICGC.
7 Banks Offering Up to 9.25% FD Interest for Seniors (2025 List)
Here’s a quick comparison of the best FD rates for senior citizens:
| Bank Name | Interest Rate | Minimum Deposit | Max Tenure | Interest Payout |
|---|---|---|---|---|
| SBI | 7.50% | ₹1,000 | 10 years | Monthly/Quarterly |
| HDFC Bank | 7.75% | ₹5,000 | 5 years | Monthly |
| ICICI Bank | 7.85% | ₹10,000 | 10 years | Monthly/Yearly |
| Axis Bank | 8.00% | ₹5,000 | 10 years | Monthly |
| IDFC First Bank | 8.50% | ₹10,000 | 5 years | Quarterly |
| YES Bank | 9.00% | ₹5,000 | 5 years | Monthly |
| Unity Small Finance Bank | 9.25% | ₹1,000 | 5 years | Monthly/Quarterly |
FD Interest for Seniors Documents Required:
- Aadhaar Card
- PAN Card
- Passport-size photo
- Address proof (electricity bill, ration card)
- Senior citizen proof (if above 60)
Key Benefits of Investing in an FD
- Steady monthly income (choose non-cumulative FD for regular payouts).
- Tax benefits (under Section 80C for 5-year FDs).
- No market risk (your money stays safe).
- Higher rates for seniors (extra 0.25%-0.75% interest).
Which Tenure Gives the Highest Returns?
Generally, longer tenures (3-5 years) offer better rates. Here’s a quick comparison:
| Tenure | Unity SFB Rate | YES Bank Rate |
|---|---|---|
| 1 year | 8.00% | 8.25% |
| 2 years | 8.50% | 8.50% |
| 3 years | 9.00% | 8.75% |
| 5 years | 9.25% | 9.00% |
FAQs (Quick Answers for Seniors)
- Is FD interest taxable?
Yes, if your annual interest exceeds ₹50,000, TDS is deducted. - Can I open an FD online?
Yes! Most banks allow online FD applications. - Which bank offers the highest FD rate?
Unity Small Finance Bank (9.25%) is currently the best for seniors. - Can I withdraw my FD early?
Yes, but a small penalty may apply. - Do all banks offer extra interest for seniors?
Yes, most banks provide 0.25%-0.75% higher rates for senior citizens.
