Senior Citizens Special FD Offers: Check Fixed Deposit Rates By 4 Small Finance Banks & Maturity On ₹12L, ₹13L, ₹14L

Authored by: Nayra Jain

Updated: 8 Jun 2025, 6:17 pm

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In 2025, fixed deposits (FDs) remain one of the most secure and popular investment options for risk-averse individuals, particularly senior citizens. While traditional banks continue to offer standard rates, many small finance banks have significantly upped the ante by providing higher interest rates on select FD tenures. According to financial experts, these institutions, though smaller in scale, compete aggressively by offering attractive rates, often exceeding 8.5% annually. This article explores FD interest rates offered by leading small finance banks in India and highlights the potential maturity values for deposits ranging from ₹12 lakh to ₹14 lakh, specifically curated for senior citizens.

Why Senior Citizens Should Consider Small Finance Banks

Small finance banks offer interest rates that are generally higher than those provided by traditional public or private sector banks. For retirees, who often seek assured returns without taking on market risks, these FDs are a reliable source of income. Moreover, special rates for senior citizens further increase their attractiveness. According to experts, these banks strategically offer better returns to attract depositors and strengthen their lending base.

AU Small Finance Bank: Reliable Returns on Mid-Term Deposits

AU Small Finance Bank has emerged as a dependable choice for those seeking short to mid-term investment security. For senior citizens opting for an 18-month special fixed deposit, the bank offers a competitive interest rate of 8.25% per annum.

Maturity values:

₹12,00,000: ₹13,56,370

₹13,00,000: ₹14,69,402

₹14,00,000: ₹15,82,433

Experts suggest that AU’s consistency in FD rate offerings makes it a suitable option for those who prefer shorter lock-in periods without sacrificing return potential.

Equitas Small Finance Bank: High Yield Over Unique Tenure

Equitas Small Finance Bank offers an exclusive 888-day fixed deposit scheme with an interest rate of 8.55% annually for senior citizens. Though the tenure is slightly unconventional, it is designed to deliver high returns while still keeping the deposit period under three years.

Maturity values:

₹12,00,000: ₹14,74,237
₹13,00,000: ₹15,97,090
₹14,00,000: ₹17,19,943

Financial analysts point out that this unique tenure provides a balanced option for those looking to earn more without locking in funds for very long.

Ujjivan Small Finance Bank: Strong Returns with Shorter Commitment

Ujjivan Small Finance Bank matches Equitas in its 8.55% annual interest offering, but with a slightly shorter duration of 18 months. This makes it suitable for investors who wish to stay liquid while still earning above-average returns.

Maturity values:

₹12,00,000: ₹13,62,362
₹13,00,000: ₹14,75,892
₹14,00,000: ₹15,89,422

Experts recommend this option for those who may need access to their funds in under two years but still wish to enjoy elevated interest rates.

Utkarsh Small Finance Bank: Top Interest Rate for Longer-Term Deposits

Utkarsh Small Finance Bank leads the pack with interest rates reaching up to 8.75% per annum for senior citizens. The bank offers this rate on both 2-year and 3-year FD tenures, making it ideal for those looking for slightly longer investment periods.

2-year FD maturity values:

₹12,00,000: ₹14,26,801
₹13,00,000: ₹15,45,701

Though small finance banks are regulated by the Reserve Bank of India and offer DICGC insurance up to ₹5 lakh per account holder per bank, investors should still perform their own due diligence. Check each bank’s financial credibility, customer service reviews, and clarity of FD terms. Matching the FD tenure to your financial goals is also essential.

Experts further advise diversifying FD investments across multiple institutions to spread risk and ensure better liquidity management.

Final Thoughts

Senior citizens aiming to maximise their returns without entering high-risk investments can consider fixed deposits in small finance banks as a practical choice. With interest rates as high as 9.10% available from certain institutions, the potential to beat inflation while ensuring capital safety is substantial. But as always, due diligence, diversification, and a clear understanding of terms are essential to make the most of these opportunities.

Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Interest rates and maturity values are subject to change as per bank policies. Readers are advised to consult certified financial advisors before making any investment decisions.