Fixed deposits (FDs) remain one of the safest investment options for senior citizens in India.
In 2026, several small finance banks are offering attractive interest rates on 3-year FDs, with some going up to 7.5%.
These schemes are a great way for senior citizens to earn steady returns while keeping their money safe.
Top Banks Offering High FD Rates
Senior citizens aged 60 and above can benefit from the following banks offering the best returns on 3-year FDs:
Utkarsh Small Finance Bank – Offers up to 7.50% interest.
A safe option with excellent returns.
Jana Small Finance Bank – Also offers 7.50%, ideal for risk-averse investors seeking stability.
Slice Small Finance Bank – Offers 7.50% on FDs and is popular due to its digital banking model.
Suryoday Small Finance Bank – Offers 7.25% interest on 3-year FDs with options for both regular and senior citizens.
Ujjivan Small Finance Bank – Offers 7.20% and focuses on digital deposits and financial inclusion.
ESAF Small Finance Bank – Provides 7.00% interest, ensuring safe and stable returns.
Equitas Small Finance Bank – Offers 7.10%, with an additional 0.50% benefit for senior citizens.
Shivalik Small Finance Bank – Offers 6.75%, becoming increasingly popular in North India.
Note: Interest rates may change, so always check the latest rates on the bank’s website or visit your nearest branch before investing.
Important Information About TDS
If the annual interest earned on an FD exceeds ₹1 lakh, banks deduct TDS (Tax Deducted at Source).
TDS is not an extra tax.
You can claim it back as a refund or adjust it against your total tax liability while filing your ITR.
You may also earn interest on the refund, depending on how quickly it is processed.
These FD schemes are a reliable way for senior citizens to grow their savings safely while enjoying higher interest rates than regular bank deposits.
By choosing the right bank and FD term, seniors can ensure steady income and financial security.
