ESAF SFB giving up to 8.50% interest on FDs:RoI available for senior citizens; check how much interest they get with other lenders

Amidst the ongoing volatility in the stock market, fixed deposits (FD) have once again emerged as the most preferred option for senior citizens seeking secure investments. In 2026, FDs are offering excellent returns for elderly individuals who prioritize the safety of their capital and regular income after retirement. Senior citizens typically receive 0.50% (50 basis points) higher interest rates compared to general customers. These interest rates depend on RBI policy, investment tenure, and the banks’ liquidity position. Interest Rates in Government and Private Banks Returns are slightly better in private banks: Small Finance Banks Offering the Highest Returns Small Finance Banks (SFBs) are leading in terms of returns, offering interest rates up to 8.5%. ESAF Small Finance Bank is offering 8.50% interest on FDs with a tenure of 501 days. Additionally, Suryoday, Shivalik, Equitas, and Jana Small Finance Banks are also offering interest rates from 8.00% to 8.30% for different tenures. However, they are considered slightly riskier compared to larger commercial banks. Investment Strategy and Tax Rules According to experts, instead of investing all the money in one FD at once, it should be invested by dividing it into short, medium, and long-term tenures. For better returns, the Senior Citizen Savings Scheme (SCSS) or PPF can also be included along with FDs. Regarding taxes, the income from FDs is taxable according to the investor’s tax slab. Banks deduct TDS (Tax Deducted at Source) on this, but if the annual income is less than the tax limit, senior citizens can save TDS by submitting Form 15H. What is Form 15H? This is a self-declaration form that people over 60 years of age submit to the bank so that TDS is not deducted on their interest income. It can only be filled if the tax on your total estimated income is zero.