FD Rate Hike: Senior citizens are earning up to 8.50% interest on FDs; find out the returns on a ₹10 lakh fixed deposit..

FD Rate Hike: In its meeting on Wednesday, October 7, the Reserve Bank of India's Monetary Policy Committee raised the repo rate by 25 basis points, increasing it from 5.25 percent to 5.50 percent. Following this decision, banks are expected to revise their fixed deposit (FD) interest rates.

Experts suggest that some banks may revise their FD rates within a few days of the RBI's policy announcement, while others might take several weeks to do so.

The timing largely depends on each bank's funding requirements and liquidity position. Comparing rates across different banks and selecting the right tenure can help maximize interest income while keeping risk low. Highest FD interest rates offered to senior citizens across various banks

1. Small Finance Banks

Equitas Small Finance Bank: Up to 8.50%
ESAF Small Finance Bank: Up to 8.50%
Suryoday Small Finance Bank: Up to 8.50%
Jana Small Finance Bank: Up to 8.30%
Ujjivan Small Finance Bank: Up to 8.30%
Shivalik Small Finance Bank: Up to 8.25%
Utkarsh Small Finance Bank: Up to 8.25%
AU Small Finance Bank: Up to 7.90%
Slice Small Finance Bank: Up to 7.75%

2. Private Sector Banks

DCB Bank: Up to 8.00%
Bandhan Bank: Up to 7.95%
SBM Bank India: Up to 7.80%
Axis Bank: Up to 7.25%
Kotak Mahindra Bank: Up to 7.15%
HDFC Bank: Up to 7.10%
ICICI Bank: Up to 7.10%
IDBI Bank: Up to 7.05%

3. Public Sector Banks

Bank of India: Up to 7.45%
Bank of Baroda: Up to 7.25%
Indian Overseas Bank: Up to 7.10%
Punjab National Bank: Up to 7.10%
State Bank of India (SBI): Up to 7.05%
Union Bank of India: Up to 7.05%

4. Foreign Banks

Standard Chartered Bank: Up to 7.10%
Deutsche Bank: Up to 7.00%
HSBC Bank: Up to 6.00%

What will be the earnings on an FD of ₹10 lakh over 3 and 5 years? If you invest ₹10 lakh in a fixed deposit (FD) for a tenure of 3 or 5 years, the total interest earned and the maturity amount—calculated at interest rates of 8.5%, 8%, and 7.5%—become quite attractive.

Investing ₹10 lakh for a 3-year tenure at an interest rate of 8.5% yields approximately ₹2,77,289 in interest. At an 8% interest rate, the total interest would be ₹2,59,712, while a 7.5% rate would generate ₹2,42,297 in interest over 3 years.

Conversely, if you lock in ₹10 lakh for a longer period—specifically 5 years—you benefit significantly more from compounding. At the highest rate of 8.5%, you would earn ₹5,03,656 in interest over 5 years, bringing your total corpus to ₹15,03,656. At an 8% interest rate, the total interest over 5 years amounts to ₹4,69,328 (total maturity: ₹14,69,328), whereas a 7.5% rate yields ₹4,35,629 in interest (total maturity: ₹14,35,629).

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