Senior citizens looking for safe investment options can still earn attractive returns with fixed deposits (FDs).
For 2026, several small finance banks are offering high interest rates on 3-year FDs, with some going up to 7.5%.
Let’s take a look at the best options for senior citizens.
Top Small Banks Offering High FD Rates
Senior citizens aged 60 or above can benefit from special FD rates.
Here’s a list of banks offering some of the highest interest rates on 3-year FDs:
Utkarsh Small Finance Bank
Interest Rate: Up to 7.5%
Offers safety and excellent returns, making it one of the top choices for senior citizens.
Jana Small Finance Bank
Interest Rate: Up to 7.5%
Ideal for risk-averse investors seeking stable and safe returns.
Slice Small Finance Bank
Interest Rate: Up to 7.5%
A digital-first bank gaining popularity due to its high FD rates.4. Suryoday Small Finance Bank
Interest Rate: Up to 7.25%
Provides various FD schemes for both senior and regular investors.
Ujjivan Small Finance Bank
Interest Rate: Up to 7.2%
Focuses on digital deposits and financial inclusion for safe investment.
ESAF Small Finance Bank
Interest Rate: Up to 7%
Prioritizes stability and safety, making it a reliable choice for seniors.
Equitas Small Finance Bank
Interest Rate: Approximately 7.1%
Senior citizens get an additional 0.5% extra interest, increasing returns.
Shivalik Small Finance Bank
Interest Rate: Approximately 6.75%
Popular in North India and considered safe for senior investors.
Note: Interest rates may change, so always check the latest rates on the bank’s website or at your nearest branch before investing.
Important Tips for Senior Citizens
TDS on FD Interest
If the interest earned on an FD exceeds ₹1 lakh in a year, banks deduct TDS.
TDS is not an extra tax; you can claim it as a refund or adjust it while filing your ITR.
You may also earn interest on the refunded amount.
Choosing the Right FD
Compare interest rates, bank reliability, digital facilities, and premature withdrawal terms.
Focus on banks offering the “Senior Citizen Benefit” to earn extra interest.
Decide your FD term based on your financial goals, emergencies, or medical expenses.
Bottom Line
For senior citizens, FDs remain one of the safest ways to earn stable returns.
With interest rates reaching up to 7.5%, small finance banks offer some of the most attractive options in 2026.
Always check the latest rates and plan your investment wisely.