Best Senior Citizen FDs in October: In October 2025, senior citizens in India can get good interest on their fixed deposits (FDs). Some banks are giving up to 8.15% per year. These rates are usually for three-year deposits and amounts up to ₹3 crore. Small finance banks give the best returns, so many retired people prefer them to earn steady and higher income from their savings.
Top Banks Offering High FD Rates for Senior Citizens
Several banks have tailored their fixed deposit offerings to benefit senior citizens, providing higher interest rates compared to regular customers.
From Nov 1, Bank Customers Can Name Up to Four Nominees in Their Accounts
Small finance banks offer highest FD rates
- ESAF Small Finance Bankoffers 8.10% for 444 days.
- Jana Small Finance Bank offers 8.00% for deposits above 2 years to 3 years, and also for 5 years.
- Suryoday Small Finance Bank offers 8.10% for 5 years.
- Utkarsh Small Finance Bankoffers 8.15% for deposits between 2 and 3 years.
Private sector banks follow closely
- Bandhan Bankoffers 7.70% for 2 years to less than 3 years.
- DCB Bank offers 7.70% for 37–38 months, with an additional 0.05% for depositors aged 70 and above.
- RBL Bank offers 7.70% for 18 months to 3 years, and super senior citizens earn an extra 0.25%.
- YES Bankoffers 7.75% for deposits from 3 years to less than 5 years.
Public sector banks offer moderate returns
- Bank of Maharashtraoffers 7.20% for 366 days.
- Central Bank of Indiaoffers 7.25% for 2222 or 3333 days.
- Indian Bankoffers 7.20% for 444 days, with an extra 0.25% for super senior citizens.
- Indian Overseas Bank also offers 7.20% for 444 days, plus 0.25% for those aged 80 and above.
Tax rules on FD interest
- The taxable portion is ₹25,000, as the TDS limit is ₹50,000.
- A 10% tax applies to the excess, so ₹2,500 is deducted.
- The ₹75,000 interest is added to his total income, but if it remains below ₹2.5 lakh, no further tax applies.
Tax Considerations and TDS Exemptions
Money earned as interest on fixed deposits has tax on it. Banks take out TDS if the yearly interest goes above a certain amount. But Budget 2025 raised the limit to ₹50,000 for normal people and ₹1 lakh for senior citizens.
If a person’s income is below the taxable limit, he can submit Form 15G at the start of the financial year to avoid TDS. Comparing rates shows that senior citizens can get the most benefit by choosing longer-term deposits, especially with small finance banks. Using Form 15G or 15H helps avoid paying tax unnecessarily.
