Karur Vysya Bank, IndusInd Bank, and Jana Small Finance Bank Revise FD Rates, Senior Citizens Can Avail Of Up To 8%

As banks revise their fixed deposit (FD) rates during the festive season, senior citizens may check banks that revised FD rates this week. Senior citizens typically receive an interest rate premium of 0.50 per cent (50 basis points – bps) over regular depositors. This helps their savings grow faster and provide financial security in times of uncertainty. During this week ended on September 27, 2025, three banks, including Karur Vysya Bank, IndusInd Bank, and Jana Small Finance Bank, revised their FD rates.

FD rates have gone down significantly this year due to repo rate cut in the first half; however it may further be reduced. There are speculations for a 25 bps repo rate cut by the Reserve Bank of India (RBI) in the coming week’s monetary policy committee meeting. “With inflation remaining below 2 per cent and GST reform reducing retail prices, the RBI has an open opportunity to reinforce economic momentum. A 25 basis point rate reduction will be a cautious response that will continue to fuel demand while keeping borrowing affordable for consumers while keeping financial stability intact, says Pramod Kathuria, founder and CEO, Easiloan, a digital platform facilitating home loans."

Amid the uncertainty, here are the interest rates for senior citizens for callable FDs of less than Rs 3 crore for one year and above tenure.

Karur Vysya Bank

This bank has revised its domestic fixed deposit (FD) rates effective September 26, 2025. For deposits up to Rs 3 crore, the general public can avail an interest rate up to 6.80 per cent, while senior citizens can avail of up to 7.20 per cent, including 40 basis points additional interest. The FD rates for seniors are as follows:

• 6.95 per cent for one year to 399 days

• 7.20 per cent for 400 days

• 6.95 per cent for 401 days up to two years

• 6.95 per cent for more than two years up to three years

• 6.95 per cent for more than three years up to five years

• 6.65 per cent for more than five years

• 6.95 per cent for KVB Tax Shield Deposits

• 4.75 per cent for Rainbow Deposits (RBFD)

• 6.65 per cent for Green Deposits (2345 days)

Rainbow deposits are the sweep-in deposits of the bank, which are created automatically when there are surplus funds in the savings account. Green deposit FDs are those whose funds are invested by the bank in environment-friendly initiatives and renewable energy projects.  

IndusInd Bank

IndusInd Bank revised its FD interest rates on September 25, 2025. Senior citizens can now earn a maximum of 7.50 per cent, 50 basis points (bps) higher rates than regular depositors. Here are the latest rates for senior citizens:

• 7.25 per cent for one year to below one year six months

• 7.50 per cent for one year six months to below one year seven months

• 7.40 per cent for one year seven months to three years

• 7.15 per cent for more than three years to below 61 months

• 7.00 per cent for 61 months and above

• 7.15 per cent for Tax Saver (five years)

Jana Small Finance Bank

Senior citizens can receive the highest 8.0 per cent from the small finance bank. The interest rates for senior citizens after revision this week are:

• 7.75 per cent for 181 days to 365 days

• 7.75 per cent for more than one year to 383 days

• 7.77 per cent for exactly 384 days

• 7.75 per cent for 385 days to two years (730 days)

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

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

• 8.00 per cent for five years (1825 days)

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

The bank revised the rates on September 22, 2025.