“With equity markets turning volatile, FDs are seeing renewed appeal as a stable and predictable return option, alongside alternatives like Public Provident Fund and Senior Citizens Savings Scheme,” said Adhil Shetty, CEO of BankBazaar.com.
Which banks are offering the highest FD rates to senior citizens?
Here is a look at the banks offering the highest fixed deposit returns to senior citizens in April 2026, based on data shared by PaisaBazaar.
Small finance banks
Equitas Small Finance Bank
Highest interest: 8.00% (888 days)
1-year: 7.40%
3-year: 7.50%
5-year: 7.50%
10-year: 7.50%
ESAF Small Finance Bank
Highest interest: 8.50% (501 days)
1-year: 5.25%
3-year: 6.50%
5-year: 6.25%
10-year: 6.25%
Jana Small Finance Bank
Highest interest: 8.00% (above 1 year to 3 years)
1-year: 7.50%
3-year: 8.00%
5-year: 7.77%
10-year: 7.00%
Shivalik Small Finance Bank
Highest interest: 8.30% (21 months 1 day to 22 months)
1-year: 6.50%
3-year: 7.25%
5-year: 6.75%
10-year: 6.75%
Suryoday Small Finance Bank
Highest interest: 8.25% (30 months)
1-year: 7.40%
3-year: 7.40%
5-year: 8.05%
10-year: 7.40%
Utkarsh Small Finance Bank
Highest interest: 8.00% (2 years to 3 years)
1-year: 6.50%
3-year: 8.00%
5-year: 7.50%
10-year: 7.25%
How do private banks compare on FD rates?
Private sector banks
Bandhan Bank
Highest interest: 7.75% (2 years to less than 5 years)
1-year: 7.50%
3-year: 7.75%
5-year: 6.60%
10-year: 6.60%
Jammu & Kashmir Bank
Highest interest: 7.75% (888 days)
1-year: 7.25%
3-year: 7.15%
5-year: 7.10%
10-year: 7.10%
SBM Bank India
Highest interest: 8.35% (391 days to 15 months)
1-year: 7.60%
3-year: 7.60%
5-year: 7.50%
10-year: 7.50%
YES Bank
Highest interest: 7.75% (3 years to less than 5 years)
1-year: 7.15%
3-year: 7.75%
5-year: 7.50%
10-year: 7.50%
What are PSU bank FD rates for senior citizens?
Public sector banks
Bank of India
Highest interest: 7.10% (450 days – Star Swarnim)
1-year: 6.75%
3-year: 7.00%
5-year: 6.75%
10-year: 6.75%
Bank of Maharashtra
Highest interest: 7.15% (400 days)
1-year: 6.70%
3-year: 5.75%
5-year: 5.50%
10-year: 5.50%
Canara Bank
Highest interest: 7.10% (555 days)
1-year: 6.75%
3-year: 6.75%
5-year: 6.75%
10-year: 6.75%
Indian Bank
Highest interest: 7.10% (444 days)
1-year: 6.60%
3-year: 6.55%
5-year: 6.50%
10-year: 6.75%
Indian Overseas Bank
Highest interest: 7.10% (444 days)
1-year: 7.00%
3-year: 6.60%
5-year: 6.60%
10-year: 6.60%
Punjab National Bank
Highest interest: 7.10% (444 days)
1-year: 6.75%
3-year: 6.80%
5-year: 6.60%
10-year: 6.80%
Punjab & Sind Bank
Highest interest: 7.25% (666 days)
1-year: 6.35%
3-year: 6.35%
5-year: 6.45%
10-year: 6.35%
Union Bank of India
Highest interest: 7.10% (444 days)
1-year: 6.75%
3-year: 6.70%
5-year: 6.50%
10-year: 6.50%
What are some common FD investment strategies?
• Breaking deposits across short, medium and long tenures
• Keeping some portion liquid through staggered maturities
• Mixing bank FDs with corporate deposits and government-backed schemes
• Aligning investments with time horizon and risk appetite
Siddharth Maurya, Founder and Managing Director, Vibhavangal Anukulakara Pvt Ltd, said spreading deposits across tenures can help manage changing rate cycles.
“You can consider FD laddering as a practical measure: divide your money among various periods so that not all the deposits grow at today’s lower rates, and at the same time, there are some maturities which are always coming up to get better rates if the cycle turns. This way, senior citizens can also opt for a combination of bank FDs, a few corporate FDs, and small savings schemes to get a blend of safety and slightly higher yields rather than sticking to a single product,” said Maurya.
