Following the Reserve Bank of India’s recent 0.25% reduction in the repo rate, attention has swiftly turned towards fixed deposit (FD) interest rates, particularly affecting senior citizens. With banks expected to reduce their rates accordingly, six institutions have announced revised FD interest rates effective February 2025. This adjustment comes as a significant move for those relying on fixed deposits as a stable income source post-retirement.
Ujjivan Small Finance Bank has been one of the first to respond to the repo rate cut, revising its FD interest rates effective from 21 February 2025. For senior citizens, the bank now offers interest rates ranging from 4.25% to 8.75% for deposits below Rs 3 crore. The highest rate of 8.75% is applicable for deposits spanning 18 months. Under its Platina Fixed Deposit scheme, a rate of 8.45% is offered for durations between 12 to 18 months, reflecting a strategic positioning to attract senior citizen deposits amidst fluctuating market conditions.
Similarly, Suryoday Small Finance Bank has made notable revisions effective from 1 February 2025. The bank now offers an interest rate of 8.75% on deposits ranging from one to three years for senior citizens, and an attractive rate of 9.1% for deposits of five years. These rates apply to deposits under ₹3 crore, demonstrating the bank’s commitment to providing competitive returns amidst the broader financial landscape.
City Union Bank and Shivalik Small Finance Bank have also revised their rates, effective 10 February and 18 February 2025, respectively. City Union Bank offers 8% interest on 333-day deposits for senior citizens and 7.25% for periods of 334 to 400 days. Shivalik Small Finance Bank offers an impressive 9.05% on deposits from 12 months and one day to less than 18 months, and 8.8% for 18 to 24 months. These strategic interest rates reinforce the banks’ positions against competitors and provide a buffer for senior citizens seeking stable returns.
Further adjustments have been made by DCB Bank and Karnataka Bank. From 14 February 2025, DCB Bank offers rates over 8% across six different tenures, with a peak of 8.55% for deposits of 19 to 20 months. Additionally, the bank provides an 8% rate on deposits ranging from 700 days to 26 months. Karnataka Bank, effective 18 February 2025, offers 8% on 401-day deposits and 7.75% on one to two-year deposits, also applicable for deposits below Rs 3 crore. These revisions underscore a competitive market environment, especially for senior citizens who depend on these financial instruments for post-retirement income stability.
FD rates for senior citizens
Bank Name Interest Rates (% p.a.)
Highest slab 1-year tenure 3-year tenure 5-year tenure
Bank of Baroda 7.80 7.35 7.65 7.40
Bank of India 7.80 7.30 7.25 6.75
Bank of Maharashtra 7.95 7.25 7.00 7.00
Canara Bank 7.75 7.35 7.30 7.20
Central Bank of India 7.95 7.25 7.00 6.75
Indian Bank 7.75 6.60 6.75 6.75
Indian Overseas Bank 7.80 7.40 7.00 7.00
Punjab National Bank 7.75 7.30 7.50 7.00
Punjab & Sind Bank 7.95 6.80 6.50 6.50
State Bank of India 7.75 7.30 7.25 7.50
UCO Bank 7.55 6.75 6.80 6.70
Union Bank of India 7.90 7.25 7.00 7.00
Highest slab 1-year tenure 3-year tenure 5-year tenure
Axis Bank 7.75 7.20 7.60 7.75
Bandhan Bank 8.55 8.55 7.75 6.60
City Union Bank 7.50 7.00 6.75 6.50
DBS Bank 8.00 7.50 7.00 7.00
DCB Bank 8.55 7.60 8.00 7.90
Dhanlaxmi Bank 7.75 7.25 7.00 7.10
Federal Bank 8.00 7.50 7.60 7.60
HDFC Bank 7.90 7.10 7.50 7.50
ICICI Bank 7.75 7.20 7.50 7.50
IDBI Bank 7.75 7.30 7.00 7.00
IDFC First Bank 8.40 7.00 7.30 7.25
IndusInd Bank 8.49 8.25 7.75 7.75
J&K Bank 7.75 7.60 7.00 7.00
Karnataka Bank 8.00 7.85 7.00 7.00
Kotak Mahindra Bank 7.90 7.60 7.60 6.70
Karur Vysya Bank 8.10 7.50 7.50 7.50
Nainital Bank 7.55 7.20 6.75 6.25
RBL Bank 8.50 8.00 8.00 7.60
SBM Bank 8.75 7.55 7.80 8.25
South Indian Bank 7.90 7.20 7.20 6.50
Tamilnad Mercantile Bank 8.25 7.50 7.00 7.00
YES Bank 8.25 7.75 8.00 8.00
Highest slab 1-year tenure 3-year tenure 5-year tenure
AU Small Finance Bank 8.60 7.75 8.00 7.75
Capital Small Finance Bank 8.10 8.00 7.65 7.60
Equitas Small Finance Bank 9.00 8.70 8.50 7.75
ESAF Small Finance Bank 8.88 6.50 7.25 6.75
Fincare Small Finance Bank 8.50 7.00 8.00 7.75
Jana Small Finance Bank 8.75 8.75 8.75 7.75
North East Small Finance Bank 9.00 7.50 9.00 8.50
Shivalik Small Finance Bank 9.05 8.30 8.00 7.00
Suryoday Small Finance Bank 9.10 8.75 8.75 9.10
Ujjivan Small Finance Bank 8.75 8.60 7.70 7.70
Unity Small Finance Bank 9.50 8.35 8.65 8.65
Utkarsh Small Finance Bank 9.10 8.60 9.10 8.35