Summary of this article
· UCO Bank reduces FD rates for seniors to 6.95 per cent
· Karur Vysya Bank offers up to 7.05 per cent for 333 days.
· Yes Bank raises rates from 18 to 36 months tenure by 10 bps.
Four banks, including public, private, and small finance banks (SFBs), have revised their fixed deposit (FD) rates during the week ending August 30, 2025. These banks include UCO Bank, Karur Vysya Bank, Yes Bank, and Equitas SFB. Now, the FD rates at most banks hover between 6.50 per cent and 8 per cent among most banks, barring a few exceptions where SFBs offer deposit rates above 8 per cent to senior citizens (60 years and above). Despite a reduction in interest rates, the fixed return element of FDs remains one of the most vital reasons for their popularity among senior citizens.
Here are the interest rate details for seniors at these four banks.
UCO Bank
This public sector bank reduced its interest rates by 15 basis points (bps) or 0.15 per cent) on its special tenure 444-day FD. The bank offers the highest deposit rate for this tenure, but after revising the rates on August 26, 2025, the interest rates have come down to 6.45 per cent from the earlier 6.60 per cent. For seniors, it would mean 6.95 per cent, including an additional 50 bps compared to the previous 7.10 per cent. The other FD tenure rates for seniors are:
6.50 per cent for 1 year
6.70 per cent for above 1 year to 443 days
6.95 per cent for 444 days
6.70 per cent for 445 days to 2 years
6.65 per cent for above 2 years to 3 years
6.60 per cent for above 3 years to 5 years
6.50 per cent for above 5 years
For seniors, the bank offers 25 bps additional interest for FDs up to one-year tenure and 50 per cent additional bps for more than one year.
Karur Vysya Bank (KVB)
Senior citizens can avail of a maximum of 7.05 per cent from the KVB’s 333-days tenure FD. It revised the rates on August 26, 2025. The revised KVB FD interest rates for seniors are:
7.05 per cent for 333 days to 1 year
6.95 per cent for 1 year to 2 years
6.95 per cent for above 2 years to 3 years
6.95 per cent for above 3 years to 5 years
6.65 per cent for above 5 years
Yes Bank
Yes Bank revised its FD rates on August 30, 2025, but unlike other banks, it increased the deposit rates by 10 bps for FD tenures between 18 months and 36 months. However, the highest rates remain unchanged at 7.75 per cent for seniors. Here are the revised interest rates for senior citizens:
7.15 per cent for 12 months
7.25 per cent for 12 months and 1 day to less than 18 months
7.25 per cent for 18 months
7.50 per cent for 18 months and 1 day to less than 24 months
7.50 per cent for 24 months to less than 36 months
7.75 per cent for 36 months to less than 60 months
7.50 per cent for 60 months
7.50 per cent for 60 months and one day to 120 months
Equitas Small Finance Bank
Senior citizens can receive up to 7.90 per cent with this small finance bank. It offers them:
7.50 per cent for 1 year to 443 days
7.60 per cent for 444 days
7.50 per cent for 445 days to 18 months
7.50 per cent for 18 months one day to two years
7.50 per cent for 2 years one day 776 days
7.60 per cent for 777 days
7.50 per cent for 778 days to 887 days
7.90 per cent for 888 days
7.50 per cent for 889 days to 3 years
7.50 per cent for 3 years 1 day to 4 years
7.50 per cent for 4 years 1 day to 5 years
7.50 per cent for 5 years 1 day to 10 years
These revised interest rates are effective from August 25, 2025.
