FD interest rate: In the past few months, many banks have reduced their fixed deposit (FD) interest rates. These rates have been reduced for both general and senior citizens. However, some small finance banks are still offering fixed deposit (FD) interest rates of up to 8.4% for senior citizens (aged 60 and above) with deposits up to ₹3 crore.
Fixed deposits are an attractive option for senior citizens looking for a source of guaranteed income. Take a look at small finance banks offering FD rates above 8% in September 2025.
Bank FD interest rates for senior citizens
Suryoday Small Finance Bank
Suryoday Small Finance Bank offers an interest rate of 8.4% on its 5-year fixed deposit. These rates are effective from September 8, 2025.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank offers 8.15% interest on fixed deposits with maturities of 2 to 3 years. These rates will be effective from July 25, 2025.
Jana Small Finance Bank
Jana Small Finance Bank is offering an interest rate of 8% on FDs with 2- to 3-year and 5-year maturities. These rates are effective from September 16, 2025.
Shivalik Small Finance Bank
Shivalik Small Finance Bank is offering 7.8% interest on fixed deposits with maturities ranging from 18 months to 24 months. These rates are effective from September 18, 2025.
TDS exemption for senior citizens
Banks deduct TDS at a rate of 10% on interest earned on fixed deposits. For individuals under 60 years of age, TDS is applicable if the total FD interest earned in a financial year exceeds ₹50,000. For senior citizens (60 years and above), this limit is ₹1 lakh per year. If the interest income remains within this limit, no TDS is deducted.
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