Six banks revised their fixed deposit (FD) rates during the week ending February 22, 2025. While the Reserve Bank of India (RBI) announced a repo rate cut of 0.25 per cent (25 basis points) on February 7, 2025, experts expect more rate cuts this year, at least 25 basis points more. Amid the speculations, banks are adjusting their rates after the changed repo, and six banks, including UCO Bank, Dhanlaxmi Bank, Karnataka Bank, South Indian Bank, Ujjivan Finance Small Finance Bank, and Shivalik Small Finance Bank, revised their FD rates. Senior citizens (60 years and above) can avail of a maximum of 9.05 per cent after this revision.
Deposits, including saving, current, fixed, and recurring, with these banks are secure up to Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) per account holder per bank.
Let us see what these banks offer to senior citizens.
UCO Bank:
This public sector bank revised FD rates on February 19, 2025. It offers seniors an additional 0.25 per cent for FDs up to one year tenure and an additional 0.50 per cent for above one year tenure. The maximum it offers to seniors is 7.30 per cent. Here are the rates for seniors:
5.50 per cent for 181 to 332 days
7.30 per cent for 333 days
5.50 per cent for 334 to 364 days
6.50 per cent from one year to 399 days
7.05 per cent for 400 days
6.50 per cent for 401 to 443 years
7.30 per cent for 444 days
6.50 per cent for 445 days to two years
6.30 per cent for above two years to three years
6.20 per cent for above three years to five years
6.10 per cent for the above five years.
Karnataka Bank:
The bank offers a maximum of 8.00 per cent to seniors after revising FD rates on February 18, 2025. It offers seniors:
6.50 per cent for 180 days to below one year
7.75 per cent for one year to two years
8.00 per cent for 401 days
7.00 per cent for above two years to five years
6.30 per cent for above five years to 10 years.
The bank offers 0.25 per cent additional rates to seniors for less than one year and 0.50 per cent for one year and above FDs.
Dhanlaxmi Bank:
The bank has revised the rates in a gap of four days on February 18, 2025. The previous rate revision was on February 14, 2025. It offers 0.50 per cent additional interest to seniors leading to a maximum of 7.75 per cent interest. It has increased interest for 180 days to less than one year by 1.0 per cent and introduced ‘555 day’ tenure’ in the latest revision. The bank offers additional rates only for one year and above tenures. Here are the rates for seniors:
6.00 per cent for 180 days to less than one year
7.25 per cent for 300 days
7.25 per cent for one year and above to two years
7.75 per cent for 555 days
7.00 per cent for above two years to three years
7.75 per cent for above three years to five years
7.10 per cent for above five years to 10 years.
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South Indian Bank:
The bank revised the rates on February 20, 2025, and offers the highest 7.90 per cent to seniors. Here are the rates:
5.50 per cent for 181 to 221 days
7.05 per cent for 222 days
5.50 per cent for 223 days to less than one year
7.30 per cent for one year
7.00 per cent for above one year to 1 year six days
7.90 per cent for one year seven days
7.00 per cent for one year eight days to less than 18 months
7.90 per cent for 18 months
7.00 per cent for above 18 months to less than 30 months
7.50 per cent for 30 months
7.20 per cent for above 30 months to less than 39 months
7.70 per cent for 39 months
7.20 per cent for above 39 months to less than five years
6.50 per cent for five years to less than 66 months
7.50 per cent for 66 months (Green deposit)
6.50 per cent for above 66 months to 10 years.
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Ujjivan Small Finance Bank:
Usually, small finance banks offer the highest interest rates compared to the public and private sector banks. Ujjivan Bank offers seniors 0.50 per cent additional rates across tenures and 8.75 per cent the highest. For seniors, the other rates are:
7.50 per cent for six months to less than 12 months
8.60 per cent for 12 months to less than 18 months
8.75 per cent for 18 months
8.00 per cent for 18 months one day to 990 days
7.70 per cent for 991 days to 60 months
7.00 per cent for 60 months one day to 120 months.
It revised the rates on February 21, 2025.
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Shivalik Small Finance Bank:
The highest rate for seniors is 9.05 per cent, which the bank offers effective February 18, 2025. Rates for other tenures for seniors are:
6.50 per cent for six months to 12 months
9.05 per cent for 12 months one day to less than 18 months
8.80 per cent for 18 months to 24 months
8.00 per cent for 24 months one day to 36 months
7.00 per cent for 36 months one day to 60 months
6.75 per cent for 60 months one day to 120 months.