IOB, Bandhan Bank, Dhanlaxmi Bank, And Five Small Finance Banks Revise Interest Rates For Seniors

Eight banks revised their fixed deposit (FD) rates during the week ended July 5, 2025. The banks that revised FD rates include Indian Overseas Bank (IOB), Bandhan Bank, Dhanlaxmi Bank, AU Small Finance Bank (SFB), Equitas SFB, North-East SFB, Utkarsh SFB, and Unity SFB. Senior citizens who usually prefer investing in fixed deposits have a challenging time now as banks are reducing deposit rates on FDs as well as savings accounts. Most banks have reduced their interest rates by around 50 to 70 basis points since the Reserve Bank of India announced the repo rate cut on June 9, 2025. Amid this, seniors may check the rates revised by these eight banks during the July 5, 2025 week. Here are the details. 

Indian Overseas Bank (IOB)

This public sector bank revised its rates for the second time within one month. Earlier, it revised the rates on June 12, and now on July 1, 2025. Now it reduced the rates on its 444 days FD by 15 basis points (bps) or 0.15 per cent per cent. The latest rates for senior citizens are:

• 7.20 per cent for one year to less than two years (except 444 days)

• 7.45 per cent for 444 days

• 7.10 per cent for two years to less than three years

• 6.80 per cent for three years and above

For super senior citizens (80 years and above), the rates are 75 bps over the card rates (rates available for the general public) or 25 bps over senior citizens' FD rates. Super seniors can receive:

• 7.45 per cent for one year to less than two years (except 444 days)

• 7.70 per cent for 444 days

• 7.35 per cent for two years to less than three years

• 7.05 per cent for three years and above

Bandhan Bank

After revising the rates on July 2, 2025, it offers a maximum of 7.90 per cent to senior citizens. Bandhan Bank FD rates for seniors are:

• 7.75 per cent for various tenures from one year to less than two years

• 7.90 per cent for two years to less than three years

• 7.75 per cent for three years to less than five years

• 6.60 per cent for five years to 10 years

Dhanlaxmi Bank

Dhanlaxmi Bank also revised and reduced its FD rates within a span of one month on July 1, 2025. Previously, it revised the rates on June 10, 2025. Including the additional 50 bps interest available to seniors, the FD rates for seniors are:

• 6.75 per cent for one to two years

• 7.40 per cent for 400 days (13 months and four days for online FD)

• 7.00 per cent for more than two years to three years

• 7.00 per cent for more than three years to five years

• 7.10 per cent for more than five years to 10 years

AU Small Finance Bank

Small Finance banks generally offer higher FD interest rates than other banks. AU small finance bank (SFB) revised the rates on July 3, 2025, and reduced the rates by 10 to 15 bps between six months and 36 months tenures. After the rate revision, it offers seniors:

• 6.85 per cent for six months one day to 12 months

• 7.40 per cent for various tenures from 12 months one day to 24 months

• 7.60 per cent for 24 months one day to 36 months

• 7.50 per cent for 36 months one day to 45 months

• 7.25 per cent for different tenures from 45 months one day to 120 months

Equitas Small Finance Bank

Equitas SFB revised the FD interest on July 1, 2025. Seniors can avail of:

• 7.75 per cent for one year to 443 days

• 7.75 per cent for 444 days

• 7.75 per cent for 445 days to 18 months

• 7.75 per cent for 18 months one day to two years

• 7.75 per cent for two years one day 776 days

• 7.75 per cent for 777 days

• 7.75 per cent for 778 days to 887 days

• 8.20 per cent for 888 days

• 7.75 per cent for 889 days to three years

• 7.50 per cent for three years one day to four years

• 7.50 per cent for four years one day to five years

• 7.50 per cent for five years one day to 10 years

North East Small Finance Bank

North East SFB revised its FD interest rates on June 27, 2025. It offers seniors:

• 7.00 per cent for six months 1 day to 12 months

• 8.00 per cent for 12 months 1 day to 18 months

• 8.50 per cent for 18 months 1 day to 18 months 2 days

• 8.25 per cent for 18 months 3 days to 36 months

• 8.25 per cent for 36 months 1 day to 60 months

• 6.75 per cent for 60 months 1 day to 120 months

Utkarsh Small Finance Bank

This SFB revised the rates on July 4, 2025. It reduced the rates by 25 bps for tenures between two years to five years. Senior citizens can avail of the highest 8.50 per cent with Utkarsh SFB FDs. For them, the revised rates are:

• 6.75 per cent for 181 days to 370 days

• 8.00 per cent for 371 days to less than two years (729 days)

• 8.50 per cent for two years (730 days) to three years (1095 days)

• 8.25 per cent for more than three years to less than four years

• 8.00 per cent for four years (1461 days) to five years (1826 days)

• 7.75 per cent for more than five years to 10 years

Unity Small Finance Bank

This SFB offers seniors up to 8.25 per cent interest rates. Seniors can receive:

• 7.00 per cent for one year

• 7.25 per cent for one year 1 day

• 7.25 per cent for more than one year 1 day to 500 days

• 7.50 per cent for 501 days

• 7.25 per cent for 502 days to 18 months

• 7.25 per cent for more than 18 months to 700 days

• 7.75 per cent for 701 days

• 7.25 per cent for 702 days to 1000 days

• 8.25 per cent for 1001 days

• 7.75 per cent for 1002 days to three years

• 7.75 per cent for more than three years to five years

• 8.00 per cent for more than five years to 10 years

These rates are effective from July 1, 2025.