Ever since the Reserve Bank of India (RBI) started hiking key policy rates in May 2022, banks have been increasing interest rates on fixed deposits (FDs). Some banks have hiked interest rates so much that they have risen from decadal low levels to close to 8% for senior citizens.

Senior citizens

Many banks provide senior citizens with higher interest rates. Despite higher interest rates, large banks such as

, , and offer the highest interest rates of 6.45 percent, 6.60 percent, and 6.60 percent, respectively. While the interest rates offered by the banks listed below are close to or exceed 8%.

Jana Small Finance Bank

Jana Small Finance Bank offers interest rate between 3.30 percent to 8.15 percent across tenure of 7 days to 10 years. The bank offers higher interest rate of 8.15 percent on tenure between 3 years to 5 years. For senior citizens, the bank offers 8.05 percent for between 1- 3 years tenure.

According to the bank, “The interest is computed based on the actual number of days in a year i.e. 365 days for a nonleapyear and366 daysfor a leap year. The tenor of Deposit is calculated in number of days.”

Fincare Small Finance Bank

Fincare Small Finance Bank (SFB) has announced an increase in interest rates on fixed deposits under Rs. 2 crore. The higher interest rates will take effect on August 21, 2022. Following the revision, the bank now offers a maximum interest rate of 8% to the general public for fixed deposits maturing in 1000 days.

Suryoday Small Finance Bank

The bank offers senior citizens the highest interest rate of 7.99% on term deposits maturing in 999 days, much closer to 8%.