From SBI To Suryoday, Latest FD Rates And Bank Of Baroda’s Senior Citizen Offer Explained
From SBI To Suryoday, Latest FD Rates And Bank Of Baroda’s Senior Citizen Offer Explained
With repo rate steady at 5.25%, fixed deposits regain focus as banks compete with rates up to 7.90%
With the Reserve Bank of India keeping the repo rate unchanged at 5.25% and maintaining a neutral stance, fixed deposit (FD) rates are expected to remain broadly stable in the near term. For depositors, this creates an important window to compare returns across banks before making fresh investments.
Small finance banks are currently offering some of the highest returns in the market. Suryoday Small Finance Bank is offering up to 7.90% per annum for deposits between one year and five years. Its one-year and three-year deposits carry 7.25%, while the five-year tenure offers 7.90%. Senior citizens receive an additional 0.20%.
Jana Small Finance Bank is offering up to 7.77% for similar tenures. It provides 7.00% for one year, 7.50% for three years and 7.77% for five years, with senior citizens getting an extra 0.50%. ESAF Small Finance Bank’s rates go up to 7.60%, though its slab structure varies by tenure. Slice Small Finance Bank is offering up to 7.75%, while Ujjivan Small Finance Bank is offering up to 7.45% for one- to five-year deposits.
Public sector banks continue to offer relatively moderate but stable rates. Bank of Baroda’s top rate stands at 6.45%, offering 6.10% for one year, 6.25% for three years and 6.30% for five years. Bank of India’s highest slab is 6.70%, while Punjab National Bank offers up to 6.40%. State Bank of India’s maximum rate is 6.45%, with 6.25% for one year and 6.30% for three years.
Several private sector banks such as Bandhan Bank, DCB Bank, CSB Bank, RBL Bank, IDFC FIRST Bank, SBM Bank, IndusInd Bank, Yes Bank, Karur Vysya Bank and Tamilnad Mercantile Bank are also offering competitive slab rates, in some cases higher than larger public lenders.
Among senior-focused schemes, the Bank of Baroda Senior Citizen FD 2026 is drawing attention. Under this scheme, eligible senior citizens receive an additional 0.50% interest over regular rates. For deposits between one and two years, seniors earn around 7.25% per annum. For two to three years, the rate goes up to about 7.50%. Deposits between three and five years offer around 7.00%, while the special 444-day tenure provides nearly 6.95%. Deposits above five years fetch around 6.75%.
The scheme offers both cumulative and non-cumulative options, allowing seniors to choose between quarterly compounding or regular monthly/quarterly payouts. Deposits are insured up to ₹5 lakh per depositor under DICGC guidelines.
Interest rates vary widely depending on tenure, with three-year and five-year deposits often offering better returns than shorter terms. Experts advise depositors to balance higher rates with factors such as bank stability, liquidity needs and long-term financial goals.
With the RBI signalling a pause and banks competing for deposits, fixed deposits remain a steady option for savers seeking predictable income without market volatility.
Disclaimer: Interest rates are subject to change. Investors should verify the latest rates with the respective bank and assess their financial goals and risk profile before investing.
