The Reserve Bank of India (RBI) has cut the repo rate by a total of 100 basis points 3 times since February 2025. After which banks have cut interest rates on their FDs several times since February 2025. But amid this decline, there are some small finance banks which are still offering attractive interest rates of up to 9% (especially for senior citizens), let’s know…
FD Interest Rate 2025: The Reserve Bank of India (RBI) has cut the repo rate by a total of 100 basis points 3 times since February 2025. This has brought relief to the loan taker, but it has proved to be detrimental for the fixed deposit (FD) customers as banks have cut interest rates on their FDs several times since February 2025. But amid this decline, there are some small finance banks that are still offering attractive interest rates of up to 9% (especially for senior citizens), let’s know…
Small Finance Bank FD Interest Rates (Updated as on June 11, 2025)
Slice Small Finance Bank
The bank offers interest ranging from 3.50% to 9.00% on FDs ranging from 7 days to 120 months. Senior citizens also get 0.50% additional interest. The highest rate of the bank is 9.00% which is the highest in the market. 1 year FD is getting 7.00% interest, 3 year FD is getting 8.75% and 5 year FD is getting 8.00% interest.
Unity Small Finance Bank
Unity Small Finance Bank offers the highest interest rate of 8.60% to its customers. 7.25% interest is being given on 1 year FD, 8.15% on 3 year FD and 8.15% on 5 year FD. Senior citizens also get 0.50% additional interest.
Suryoday Small Finance Bank
The bank is giving up to 8.40% interest on FD. 7.90%, 8.40% and 8.00% interest is being given on 1, 3 and 5 year FD respectively. Senior citizens also get 0.40% additional interest.
Shivalik Small Finance Bank
In this bank too, senior citizens are getting 0.50% extra interest on FD. Its maximum rate is 8.30%. The bank is giving 6.00% interest on 1 year FD, 7.50% on 3 years and 6.50% on 5 years.
Utkarsh Small Finance Bank
The bank gives 6.25% interest on 1 year FD, 8.25% on 3 years and 7.75% on 5 year FD. Senior citizens also get 0.50% extra interest. Its highest rate is 8.25%.
Jana Small Finance Bank
The maximum interest rate of Jana Small Finance Bank is 8.20%. 7.50% interest is being given on 1 year FD, 8.05% on three years and 8.20% on 5 years. Senior citizens also get 0.50% additional interest.
Ujjivan Small Finance Bank
The bank gives 7.90% interest for both 1 and 3 years and 7.20% for 5 years. Senior citizens also get 0.50% additional interest.
The maximum interest rate is 8.05%.
Risk and Security
Higher interest is given on FD in Small Finance Bank, but while investing in them, things like the credit rating of the bank and RBI monitoring should be kept in mind. The good thing is that every depositor gets an insurance cover of up to a maximum of ₹5 lakh on the amount deposited in all scheduled banks through DICGC, a subsidiary of RBI. This includes FD, savings account, current account and RD.
