Unity Small Finance Bank (SFB) has revised its interest rates on fixed deposits. It is currently offering an interest rate of 9.5 per cent to senior citizens for a fixed deposit for 1001 days as of 6 September 2023. However, rates for one-year tenure stand at 7.85 per cent, and for 3 and 5-year FDs it is 8.15 per cent. 

The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.

Table compiled by Paisabazaaar.


Jana Small Finance Bank, Fincare Small Finance Bank, Equitas Small Finance Bank, Esaf Small Finance Bank, Survoday Small Finance Bank and Utkarsh Small Finance Banks are other banks with over 9-9.11 per cent interest rates to senior citizens for FDs.


Senior citizen fixed deposit (FDs) are term deposit plans with exceptional interest rates available to individuals over the age of 60. Apart from the additional 0.25% p.a. rate of interest, these fixed deposit accounts offer a wide range of benefits to older residents.

Fixed deposits come with a premature withdrawal option that enables you to close the account before it matures. However, you will have to pay a penalty to the bank to avail of this facility. This is done to prevent frequent withdrawals and to promote the saving habit. The penalty charges typically range from 0.5% to 1%. Certain banks allow you to withdraw your FD without imposing any penalty fees.

According to Bankbazaar,  some banks do not charge any penalty in case of an emergency or if you wish to invest the same amount in another investment option provided by the bank.

Apart from this, when an investor closes an account prematurely, the rate of interest is lowered when compared to the fixed interest initially given. For example, an investor has deposited a certain amount on an FD, which earns an interest of 8% per annum for 3 years. For the first year, interest earned was 6% per annum. If withdrawn prematurely after one year, the interest paid to the investor will be 6% per annum and not 8% per annum.


Top 3 Special Fixed Deposit Schemes for Senior Citizens 1. SBI Wecare Fixed Deposit Scheme State Bank of India (SBI) introduced the “SBI Wecare” Deposit for senior citizens wherein an additional premium of 50 bps (over & above the existing 50 bps on the regular FD rates) will be paid on FD for ‘5 years and above’ tenure. 2. HDFC Senior Citizen Care FD HDFC Bank offers an additional premium of 25 bps (over and above the existing premium of 50 bps) to senior citizen FD depositors on the tenure of 5 years 1 day to 10 years on deposits less than Rs 5 crores for tenures of 5 years 1 day to 10 years. This scheme is valid from 18 May 2020 to 7 November 2023. 3. ICICI Bank Golden Years Senior citizen FD customers of the ICICI Bank are offered an additional interest rate of 10 bps over and above the existing additional senior citizen FD rates of 50 bps, on tenure ranging from 5 years and 1 day to 10 years. The scheme is applicable on deposits of less than Rs 2 crore.

First Published: Sep 08 2023 | 9:42 AM IST

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