FD Interest Rate: 8.4% FD interest rate! These top 3 banks are making a killing for senior citizens...

To ensure a secure future, people still consider fixed deposits (FDs) the best option. Meanwhile, many banks have recently reduced their fixed deposit (FD) interest rates. These rates have been reduced for both general customers and senior citizens (60 years and above). However, some small finance banks are still offering generous interest rates to senior citizens.

In September 2025, three banks are offering high interest rates to senior citizens. Small finance banks are offering the best FD rates for senior citizens. So, learn about the banks and deposit details offering interest rates ranging from 8% to 8.4%.

Bank FD Interest Rates for Senior Citizens
1. Suryoday Small Finance Bank
Suryoday Small Finance Bank offers 5-year FDs for senior citizens at an interest rate of approximately 8.4% per annum. This rate is expected to be effective from September 8, 2025.

2. Utkarsh Small Finance Bank

Utkarsh Small Finance Bank is offering an interest rate of approximately 8.15% on FDs with a maturity period of 2 to 3 years. This rate is effective from July 25, 2025.

3. Jana Small Finance Bank

Talking about Jana Small Finance Bank, it is offering senior citizens an interest rate of approximately 8% on FDs with a maturity period of 2 to 3 years and 5 years. This rate is effective from September 16, 2025.

4. Shivalik Small Finance Bank
Shivalik Small Finance Bank is also offering good interest rates for senior citizens. It is offering 7.8% on FDs with a maturity period of 18 to 24 months. This rate is effective from September 18, 2025.

Famous Small Finance Bank FD Rates for September 2025
Investment Caution
FD deposits in small finance banks are limited to ₹5 lakh by the Deposit Insurance Credit Guarantee Corporation (DICGC). Caution should be exercised before investing in these banks.

TDS on Bank FDs
Income Tax (TDS) is applicable on interest income earned on fixed deposits. For individuals (below 60 years of age), if the annual interest exceeds ₹50,000, a 10% TDS is deducted. For senior citizens (60 years or above), the limit is ₹1 lakh per annum; if the interest is within this limit, no TDS is deducted.

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