Most Indian banks have recently lowered fixed deposit interest rates, impacting risk-averse investors — including senior citizens who depend on FDs for a steady income — following the Reserve Bank of India’s (RBI) 25 basis point repo rate cut on April 9, which brought the total reduction to 50 basis points since February 2025.
Banks have also discontinued special-tenure fixed deposit schemes, including State Bank of India’s Amrit Kalash and Bank of India's 400-day plan.
Fortunately, investors can still find relief in some banks that offer appealing three-year fixed deposit rates of up to 7.75 percent for the general public (non-senior citizens) and 8.25 percent for senior citizens.
Here are some banks that offer higher interest rates to the general public and senior citizens on three-year FDs. The list of such banks is not exhaustive. BankBazaar and Moneycontrol Research have compiled the data.
The best rates offered by these banks on three-year FDs (up to Rs 1 crore) have been considered. The data is as of April 29, 2025.
Also read | Deposit rates slashed — savers hit as banks move in to protect margins
Equitas Small Finance Bank
Equitas Small Finance Bank’s three-year fixed deposit offers 7.75 percent interest for the general public, growing Rs 1 lakh to Rs 1.26 lakh, and 8.25 percent interest for senior citizens, maturing Rs 1 lakh to Rs 1.28 lakh.
AU Small Finance Bank
AU Small Finance Bank offers a three-year fixed deposit at 7.5 percent interest for the general public, maturing Rs 1 lakh to Rs 1.25 lakh, and 8 percent interest for senior citizens, growing Rs 1 lakh to Rs 1.27 lakh.
Canara Bank
Canara Bank offers a three-year fixed deposit with an interest rate of 7.2 percent for the general public, which would raise Rs 1 lakh investment to Rs 1.24 lakh. For senior citizens, the bank offers a higher interest rate of 7.7 percent, growing Rs 1 lakh investment to Rs 1.26 lakh over the same tenure.
Bank of Baroda
Bank of Baroda's three-year fixed deposit offers 7.15 percent interest for the general public, growing Rs 1 lakh to Rs 1.24 lakh, and 7.65 percent interest for senior citizens, maturing Rs 1 lakh to Rs 1.26 lakh.
HDFC Bank, ICICI Bank and Axis Bank
These banks offer a three-year fixed deposit with an interest rate of 6.9 percent for the general public, maturing Rs 1 lakh to Rs 1.23 lakh. For senior citizens, they offer a higher interest rate of 7.4 percent, growing Rs 1 lakh to Rs 1.25 lakh over the same tenure.
State Bank of India and Punjab National Bank
State Bank of India and Punjab National Bank offer a three-year fixed deposit at 6.75 percent interest, maturing Rs 1 lakh to Rs 1.22 lakh for the general public. For senior citizens, they offer 7.25 percent interest, growing Rs 1 lakh to Rs 1.24 lakh over the same period.
Also read | Falling interest rates: Senior citizens should lock into longer-term FDs, small saving instruments
Union Bank of India
Union Bank of India’s three-year fixed deposit offers 6.7 percent interest for the general public, growing Rs 1 lakh to Rs 1.22 lakh, and 7.20 percent interest for senior citizens, maturing Rs 1 lakh to Rs 1.24 lakh.
Bank of India
Bank of India offers a three-year fixed deposit at 6.5 percent interest for the general public, maturing Rs 1 lakh to Rs 1.21 lakh, and 7 percent interest for senior citizens, growing Rs 1 lakh to Rs 1.23 lakh.
Indian Bank
Indian Bank offers a three-year fixed deposit with 6.25 percent interest for the general public, turning Rs 1 lakh to Rs 1.20 lakh, and 6.75 percent interest for senior citizens, growing Rs 1 lakh to Rs 1.22 lakh.
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