Senior citizens looking to earn higher returns on their fixed deposits (FDs) may find better rates at banks revising their deposit rates in October 2026. The latest bank FD rate changes come amid shifting interest rate expectations following the Reserve Bank of India’s (RBI) 25-basis-point repo rate hike on October 7, which raised the policy rate from 5.25% to 5.50%.
Indian Bank has revised rates on select tenures of its domestic retail term deposits of less than ₹3 crore, effective October 23, 2026.
Its IND Grow (555-day) deposit rate has increased by 15 basis points to 6.80% from 6.65%, while the IND Prosper (777-day) deposit rate has risen by 15 basis points to 6.75% from 6.60%. Senior citizens can earn up to 7.30% and 7.25%, respectively, on these special-tenure deposits.
Shriram Finance has also hiked its fixed deposit rates from October 11, including rates for senior citizens and women.
However, comparing rates at individual banks may not provide the complete picture. Here is a look at the FD interest rates offered to senior citizens aged 60 and above by leading public sector, private, and small-finance banks in October 2026.
Which public sector banks offer the highest FD rate for senior citizens?
In October 2026, the highest slab FD rate is 7.45% per annum at Bank of India, followed by 7.35% at Punjab & Sind Bank. The highest slab means the maximum interest rate a bank offers on any eligible FD tenure for senior citizens, not necessarily for a 1-year, 3-year, or 5-year deposit.
| Public Sector Banks | Highest slab (% p.a.) | 1-year tenure | 3-years tenure | 5-years tenure |
| Bank of India | 7.45 | 7 | 7.45 | 6.75 |
| Punjab & Sind Bank | 7.35 | 6.35 | 6.35 | 6.45 |
| Bank of Baroda | 7.25 | 6.75 | 6.75 | 6.9 |
| Central Bank of India | 7.25 | 6.6 | 6.5 | 6.5 |
| Bank of Maharashtra | 7.15 | 6.9 | 5.75 | 5.5 |
| Indian Bank | 7.15 | 6.6 | 6.55 | 6.5 |
| Indian Overseas Bank | 7.1 | 7 | 6.6 | 6.6 |
| Canara Bank | 7.1 | 6.75 | 6.75 | 6.75 |
| Punjab National Bank | 7.1 | 6.75 | 6.8 | 6.6 |
| State Bank of India | 7.05 | 6.75 | 6.8 | 7.05 |
| Union Bank of India | 7.05 | 6.7 | 6.6 | 6.5 |
| UCO Bank | 6.95 | 6.35 | 6.5 | 6.5 |
*Source: paisabazaar; Interest rates as of 21 October 2026; Deposits below ₹3 crores
Which private banks offer the highest FD rate for senior citizens?
SBM Bank offers the highest slab rate of 8.15% per annum, followed by DCB Bank at 8% and Bandhan Bank at 7.95%.
| Private Banks | Highest slab (% p.a.) | 1-year tenure | 3-years tenure | 5-years tenure |
| SBM Bank | 8.15 | 7.6 | 7.6 | 7.5 |
| DCB Bank | 8 | 7.15 | 7.25 | 8 |
| Bandhan Bank | 7.95 | 7.5 | 7.75 | 6.6 |
| Dhanlaxmi Bank | 7.75 | 6.75 | 7 | 7 |
| IndusInd Bank | 7.75 | 7.25 | 7.75 | 7.15 |
| YES Bank | 7.75 | 7.15 | 7.75 | 7.5 |
| Tamilnad Mercantile Bank | 7.7 | 7.3 | 7.2 | 7.2 |
| City Union Bank | 7.5 | 6.9 | 6.75 | 6.75 |
| RBL Bank | 7.5 | 7.4 | 7.5 | 7.2 |
| Karnataka Bank | 7.4 | 6.9 | 6.55 | 6.55 |
| CSB Bank | 7.35 | 5.25 | 6 | 6 |
| IDFC FIRST Bank | 7.35 | 6.75 | 7.35 | 7 |
| South Indian Bank | 7.3 | 6.85 | 6.7 | 6.2 |
| Axis Bank | 7.25 | 6.75 | 7 | 7.25 |
| J&K Bank | 7.25 | 7.05 | 7.2 | 7.25 |
| Federal Bank | 7.2 | 6.75 | 7 | 6.9 |
| Karur Vysya Bank | 7.2 | 6.95 | 6.95 | 6.95 |
| Kotak Mahindra Bank | 7.15 | 7 | 6.9 | 6.75 |
| HDFC Bank | 7.1 | 6.75 | 6.95 | 6.9 |
| ICICI Bank | 7.1 | 6.75 | 6.95 | 6.9 |
| Nainital Bank | 7.1 | 6.25 | 6.75 | 6.25 |
| IDBI Bank | 7.05 | 6.7 | 6.85 | 6.75 |
| DBS Bank | 7 | 6.75 | 7 | 6.75 |
*Source: paisabazaar; Interest rates as of 21 October 2026; Deposits below ₹3 crores
- Highest slab: SBM Bank offers 8.15% per annum.
- 1-year FD: SBM Bank offers 7.60% per annum.
- 3-year FD: Bandhan Bank, IndusInd, and Yes Bank offer 7.75% per annum.
- 5-year FD: DCB Bank offers 8% per annum.
Which small finance banks offer the highest FD rate for senior citizens?
Equitas Small Finance Bank, ESAF Small Finance Bank, and Suryoday Small Finance Bank offer the highest slab of 8.5% per annum among the small finance banks.
| SFBs | Highest slab (% p.a.) | 1-year tenure | 3-years tenure | 5-years tenure |
| Equitas Small Finance Bank | 8.5 | 7.6 | 7.6 | 7.5 |
| ESAF Small Finance Bank | 8.5 | 6.5 | 6.5 | 6.25 |
| Suryoday Small Finance Bank | 8.5 | 7.4 | 7.4 | 8.5 |
| Jana Small Finance Bank | 8.3 | 7.5 | 8.3 | 7.77 |
| Ujjivan Small Finance Bank | 8.3 | 7.75 | 7.75 | 7.7 |
| Shivalik Small Finance Bank | 8.25 | 6.25 | 7.75 | 6.5 |
| Utkarsh Small Finance Bank | 8.25 | 6.5 | 8 | 7.5 |
| Unity Small Finance Bank | 8 | 8 | 7.25 | 7.25 |
| AU Small Finance Bank | 7.9 | 6.85 | 7.9 | 7.25 |
| Capital Small Finance Bank | 7.6 | 7.6 | 7.4 | 7.3 |
| Fincare Small Finance Bank | 7.6 | 6.85 | 7.6 | 7.25 |
*Source: paisabazaar; Interest rates as of 21 October 2026; Deposits below ₹3 crores
Which banks offer the highest FD rates for senior citizens in October 2026?
Among public sector banks, private sector banks, and small finance banks, small finance banks offer the highest FD interest rates for senior citizens in October 2026, with Equitas Small Finance Bank, ESAF Small Finance Bank and Suryoday Small Finance Bank offering up to 8.5% per annum.
Among public sector banks, Bank of India offers the highest FD rate of 7.45%. Among private sector banks, SBM Bank leads with 8.15% per annum.
Disclaimer: This is for informational purposes only. Please check the respective bank’s official website for the latest FD interest rates, applicable terms and conditions.