Top 5 fixed deposit schemes for senior citizens offering up to 9.5% interest in July 2025
Even as interest rates at major banks begin to decline, senior citizens looking for safe but lucrative investment avenues can still find high-yielding opportunities in the fixed deposit category. Certain small finance banks continue to offer good returns of up to 9.6% for short terms. For retirees looking for regular monthly or quarterly income, these FDs represent a good balance between safety and liquidity and inflation-surfacing returns.
Highest interest FDS for seniors in July 2025 For senior citizens, fixed deposits remain one of the best ways to earn regular and risk-free income. While the majority of large banks have lowered their deposit rates in the last few months, some small finance banks still provide very attractive FD interest rates—up to 9.5%—to seniors. Not only are these schemes mind-assuring but also allow retirees to earn more-than-inflation returns on their savings. Here's a look at the best deals this month.
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Suryoday Small Finance Bank – 9.6% for 5 years Suryoday offers the maximum FD rate in July 2025, offering senior citizens 9.6% annually on a 5-year deposit. Invest ₹1 lakh and get it to nearly ₹1.59 lakh with compounding every quarter. The interest can be received monthly, quarterly, or at the end of the period. Pre-mature closure is allowed after six months with a 1% penalty. Deposits up to ₹5 lakh are insured, and the account can be easily opened online or at the branch offices.
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Small Finance Bank – 9.5% for 546–1111 days Senior citizens can receive interest of 9.5% from Small Finance Bank if they invest money for a duration between 546 and 1111 days. A minimum investment of ₹5,000 is required, which is within the reach of small savers also. A penalty of 1% is charged for early withdrawal, but loans against deposits are offered by the bank to maintain liquidity. Deposits are rolled over on maturity at the current rate unless otherwise instructed by the investor.
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Unity Small Finance Bank – 9.5% for 1001 days Unity Bank continues to offer 9.5% interest to senior citizens on a tenure of 1001 days. The customer can start the deposit with even ₹1,000. Monthly, quarterly, or cumulative payment of interest is available. Early withdrawal is permitted after seven working days, but at a 1% fee. The facility of an overdraft of up to 90% of deposit is available, which can be useful in the event of urgent needs.
Fincare Small Finance Bank – 9.11% for 750 days Fincare's special 750-day FD scheme gives senior citizens a whopping 9.11% return on an annual basis. An investment of ₹2 lakh in this scheme matures to about ₹2.32 lakh if interest is compounded quarterly. Seniors get 0.50% extra compared to general depositors, and women get an extra 0.10%. Pre-maturity withdrawal is allowed after three months, and the bank's online FD calculator helps subscribers estimate potential returns before investing.
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Shivalik Small Finance Bank – 9.05% for 12–18 months Shivalik SFB provides 9.05% interest for senior citizen FDs with a term of 12 to 18 months. Suitable for those who want short-term commitments without sacrificing returns. A deposit of ₹50,000 can generate almost ₹4,500 as interest within one year. Non-cumulative and cumulative plans are offered. Early withdrawal is allowed with a 0.50% charge and deposits can be made by both physical branches and digital channels.
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Choose the right scheme and protect your savings Even as declining FD rates in large banks deter senior citizens from tying up with decent returns, they can do so with the help of offers from small finance banks. The best five schemes of July 2025 generate up to 9.6% interest and are highly rewarding for conservative investors. However, retirees must be within insured limits, keep themselves informed about advance withdrawal charges, and diversify between tenures and institutions to balance risk and returns as well.
