Fixed deposits (FD) are popular investment instruments for senior citizens due to low risks and guaranteed returns. While large scheduled banks have reduced their FD interest rates, some small finance banks (SFBs) continue on a rate hike spree. Large scheduled banks are also in the fray to woo senior citizens. The State Bank of India (SBI) recently extended the deadline for its two special FDs, although the interest rates remain the same. Seniors usually get an extra 50 basis points (bps) on deposit interest rates. So those looking for higher returns can explore the following small finance banks offering 9 per cent or above interest rates.

Unity Small Finance Bank: The bank revised its rates on June 14, 2023. The rates for tenures from seven days to up to 10 years range between 4.50 per cent and 9.50 per cent for senior citizens and 4.5 per cent to a maximum of 9.00 per cent for the general public.

The highest rate is for 1001 days, where seniors can get 9.5 per cent and non-seniors 9.0 per cent. The next highest rate is for tenures of more than six months to 201 days and 501 days, at 9.25 per cent for seniors and 8.75 per cent for the general public.

North East Small Finance Bank: The bank offers more than 9.25 per cent to senior citizens as part of its special ‘Monsoon Dhamaka’ FDs for 555-day and 1,111-day tenures. For the general public, the rate is 8.50 per cent on these FDs. These are the highest rates the bank offers on FDs. It revised the rates on June 6, 2023.

Suryoday Small Finance Bank: SFB revised the interest rates on June 1, 2023. It offers a maximum of 9.60 per cent to seniors for a five-year FD. Others get 9.10 per cent for the same tenure. According to its website, it will give an annualised yield of 9.95 per cent at this rate. The rates for seniors are more than 9.00 per cent for FDs of over one year to 999 days and five years.

Jana Small Finance Bank: It offers a maximum of 8.5 per cent for the general public, and seniors get 50 basis points more or 9.0 per cent. Seniors get 9.0 per cent on FDs with a tenure of 366 days to up to two years and 500 days. The bank revised the rates on May 30, 2023.

Fincare Small Finance Bank: It revised the rates on May 25, 2023, and offers the highest rate of 9.11 per cent for seniors for a tenure of 1,000 days, while for others, it is 8.51 per cent for the same period. The annualised return would be around 9.43 per cent for seniors and 8.79 per cent for others. The bank offers a premature withdrawal facility after a penalty. It offers 8.00 per cent and above to seniors for tenures of 12 months to up to 66 months.

ESAF Small Finance Bank: ESAF also gives a 9.0 per cent interest rate to seniors for a fixed deposit of two years to less than three years. The bank revised its rates on April 14 this year.