Which Banks Offer Fixed Deposit Interest Rates Of 8% And Above To Seniors For A 5-Year Tenure?

If you look for fixed-income instruments, nothing seems as convenient and approachable as banks' fixed deposits (FDs). Despite the return not being so great, risk-averse investors prefer FDs over other financial instruments. Banks' penetration in household savings, cross-generation association with customers, and the most important feature, the certainty of income FDs offer, can't let people think beyond these instruments. Senior citizens, especially, avoid taking risks in exchange for the possibility of higher returns, because, ultimately, it remains a possibility, not an assurance. Amid the declining interest rate scenario, locking in higher interest rates for the long term is an easy decision, while keeping in mind the liquidity, return, and risk factors in the portfolio.  

After the Reserve Bank of India (RBI) repo rate cut by 100 basis points (1 per cent) this year to 5.50 per cent, several banks reduced their lending and deposit interest rates, too. Here are three banks that offer seniors interest rates between 8 per cent and 8.60 per cent for a 5-year tenure. These banks include Slice Small Finance Bank (erstwhile North East Small Finance Bank), Jana Small Finance Bank, and Suryoday Small Finance Bank.

Slice Small Finance Bank (Erstwhile North East Small Finance Bank)

Slice Small Finance Bank (SFB) offers seniors 50 bps higher interest for seven days to three months tenure, and 25 bps higher rates for three months to 12 months, and more than five years to 10 years tenure. For a 5-year tenure, the bank offers 50 bps highest rate which is 8.25 per cent. Here are the rates for seniors for one year onwards, effective June 27, 2025.

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

• 8.50 per cent for 18 months one day to 18 months two days

• 8.25 per cent for 18 months three day to 36 months

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

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

Jana Small Finance Bank

This SFB offers 50 bps higher rates to seniors for FD tenure of 181 days onwards, except for the 5-year (1825 days) FD. It offers the highest 8.00 per cent to seniors on a 5-year FD. From August 21, 2025, seniors' FD interest rates are:

• 7.75 per cent for tenures between 181 days and 383 days

• 7.77 per cent for 384 days

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

• 8.00 per cent for above two years to three years (1095 days)

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

• 8.00 per cent for five years (1825 days)

• 7.00 per cent for above five years to 10 years

Suryoday Small Finance Bank

Suryoday SFB offers 8.40 per cent to senior citizens for a 5-year FD, which would mean an around 8.67 per cent annualised yield. The bank offers the highest interest rates of 0.40 per cent on all FD tenures, except 5-year FD, on which it offers only 0.20 per cent additional interest. Details of interest rates for other tenures for seniors are:

• 7.90 per cent for various tenures between one year and 30 months

• 8.15 per cent for above 30 months to 36 months

• 7.15 per cent for above three years to less than five years

• 8.40 per cent for five years

• 7.65 per cent for above five years to 10 years

At times, concerns arise for the safety of deposits in these SFBs. It is essential to know that these Small Finance Banks are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance. It means that the deposits, including savings, current, fixed, and recurring deposits, up to Rs 5 lakh per depositor per bank, are secured.