Several banks, including public sector lenders, private banks and small finance banks, revised their fixed deposit (FD) interest rates in June, offering senior citizens an opportunity to lock in higher returns. According to the latest revisions, senior citizens can now earn up to 8.50% annually on select tenures, with small finance banks continuing to offer the most attractive rates.

The changes come at a time when Indian savers are increasingly shifting money from savings accounts to fixed deposits, attracted by higher interest rates and assured returns. While general customers can earn up to 7.5% on deposits, senior citizens typically receive an additional 25-50 basis points, depending on the bank and tenure.

Revised rates

Among the banks that revised rates this month are Punjab and Sind Bank, Bank of Maharashtra, Bandhan Bank, City Union Bank, South Indian Bank, Equitas Small Finance Bank (SFB), ESAF SFB and Shivalik SFB. Several other lenders, including Yes Bank, DCB Bank, Union Bank of India and Punjab National Bank, also updated their deposit rates earlier in June.

Equitas Small Finance Bank currently offers one of the highest rates in the sector. Senior citizens can earn 8.50% on a deposit with a tenure of 36 months and one day, while a special 888-day deposit fetches 8.25%.

Shivalik Small Finance Bank also offers a maximum of 8.50% to senior citizens for callable deposits of up to ₹3 crore with maturities between 23 months and 27 months.

ESAF Small Finance Bank has revised its rates to offer senior citizens up to 8.25% for deposits with maturities between two and three years.

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Private sector lenders

Among private sector lenders, Bandhan Bank offers up to 7.95% to senior citizens for deposits with maturities between two and three years after raising rates by 20 basis points for that segment.

Yes Bank offers senior citizens up to 7.75% for deposits with tenures ranging from 18 months and one day to less than 24 months, while City Union Bank provides up to 7.50% on a 555-day deposit. Super senior citizens aged 80 years and above receive an additional 5 basis points on most tenures.

DCB Bank has emerged as one of the most attractive options for elderly depositors. Senior citizens aged 60 to below 70 years can earn up to 8%, while those aged 70 years and above under the "Senior Citizens Plus" category can earn as much as 8.05% on select tenures.

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Public sector banks

Public sector banks continue to offer competitive returns. Punjab and Sind Bank offers up to 7.40% to senior citizens, while Bank of Maharashtra provides a maximum rate of 7.15% on its special 400-day deposit. South Indian Bank offers up to 7.30%, and Punjab National Bank provides 7.10% for senior citizens and 7.40% for super senior citizens on its 444-day deposit.

Union Bank of India, meanwhile, offers 6.65% on its 555-day deposit, making it one of the more conservative offerings among large lenders.

With several banks tweaking rates in June, financial planners say depositors should compare tenures and institutions carefully before locking in funds. The wide variation in rates across banks and maturities means that choosing the right deposit period can significantly improve returns, especially for retirees and senior citizens seeking stable income.

Published on: Jun 24, 2026 6:25 AM IST