South Indian Bank, ICICI Bank Revised FD Rates, Seniors To Get Up To 7.10 Per Cent

South Indian Bank and ICICI Bank have revised fixed deposit (FD) interest rates during Diwali week, which ended on October 25, 2025. After revision, senior citizens can avail of a maximum of 7.10 per cent interest rates with the bank. For seniors, FDs remain one of the most reliable investments as they offer predictable returns, capital protection, and a higher interest rate, typically 0.50 per cent over the card rates (the rates offered to the general public). With flexible tenures, monthly or quarterly payout options, and tax deductions under Section 80TTB of the Income-tax Act, 1961, fixed deposits ensure steady income without market fluctuations. The compounding interest benefit makes the amount grow, and seniors typically use the monthly payout option to ensure a regular cash flow.

In this year’s budget (Budget 2025), the limit for tax deduction at source (TDS) has been increased for seniors from Rs 50,000 to Rs 1 lakh a year, starting the financial year 2025-26. It means that up to Rs 1 lakh of interest income from FDs of a senior citizen, the bank will not deduct TDS. However, it does not make FDs tax-free; the interest amount remains taxable in the hands of the receiver.

Let us check the revised rates of these two banks for callable FDs of less than Rs 3 crore.

South Indian Bank

South Indian Bank revised its FD interest rates on October 24, 2025. It has removed a 400-day tenure and merged a few others. However, the highest rate for seniors remains the same at 7.10 per cent for a 1-year tenure. For seniors, the FD rates after revision are:

• 7.10 per cent for one year

• 6.60 per cent for above one year to one year six days

• 6.70 per cent for one year seven days to less than five years

• 6.20 per cent for five years to less than 66 months

• 6.50 per cent for 66 months (Green Deposit)

• 6.20 per cent for more than 66 months to 10 years

ICICI Bank

ICICI Bank kept the highest rate at 7.1 per cent for seniors but changed FD tenures. For FDs between one year and 10 years, the bank used to offer five tenures, which are now merged, resulting in three tenures. It has also reduced the rates from 7.00 per cent to 6.90 per cent for an 18-month to two-year period. Here are the revised rates for seniors:

• 6.75 per cent for one year to less than 18 months

• 6.90 per cent for 18 Months to two years

• 7.10 per cent for two years one day to 10 years

These revised rates are effective October 24, 2025.