Banks Revise FD Rates, Offering Up to 8.50% for Senior Citizens
Four banks revised their fixed deposit (FD) interest rates during the week ending August 22, 2026, with senior citizens able to earn up to 8.50% at ESAF Small Finance Bank. The changes come amid a broader regulatory shift affecting bulk deposits.
HDFC Bank revised its FD rates effective August 19, offering senior citizens a maximum of 7.10% on deposits with a tenure of three years and one day to less than four years and seven months. The bank's rates for other tenures include 6.75% for one year to less than 15 months, 6.85% for 15 months to less than 18 months, and 6.95% for several tenures between 18 months and three years. For deposits around the 55-month tenure, the rate is 6.90%, while five years and one day to 10 years fetches 6.65%.
Federal Bank revised and increased its FD rates on August 17 and introduced a new tenure. Senior citizens can earn up to 7.20% on a 48-month deposit. The bank offers 6.75% for one year, 6.90% for more than one year to less than 15 months, and 7.15% for 15 months. Deposits above 24 months to less than 48 months earn 7%, while deposits beyond 48 months to 10 years offer 6.90%.
Slice Small Finance Bank, formerly North East Small Finance Bank, revised its rates on August 19 after nearly 10 months. Senior citizens can earn a maximum of 7.75% on deposits with a tenure of 18 months and one day to 24 months, with quarterly interest payouts. The bank offers 7.25% for 12 months and one day to 18 months, 7.50% for more than two years to three years, and 7.25% for more than three years to five years.
ESAF SFB revised its FD rates on August 17, increasing its highest senior-citizen rate by 0.25 percentage point to 8.50%. The maximum rate applies to an 800-day deposit. Other tenures at ESAF SFB include 6.50% for one year and 6.50% for three years, with five-year deposits earning 6.25%.
According to reports from both Business Today and Outlook Money, these rates apply to callable fixed deposits valued at less than ₹3 crore. Deposits with these banks are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, subject to applicable limits and conditions.
RBI's Bulk Deposit Rule
Outlook Money reported that the Reserve Bank of India (RBI) has mandated a uniform interest rate on bulk fixed deposits for similar amounts and tenures booked on the same date across all branches of a bank. Banks are strictly prohibited from offering differential rates on bulk deposits of the same size. These rules apply from October 1, 2026, to bulk deposits only—defined as a single deposit of more than ₹3 crore. There is no change for smaller deposits.