FD rates: Here are banks that offer up to 8.4% interest for 3-year tenure

15 banks that offer the highest interest rates on fixed deposits in a declining interest rate scenario.

The Reserve Bank of India's (RBI) 100 basis-point repo rate cut to 5.5 percent so far this year has significant implications for depositors. Following the RBI move, banks have lowered their fixed deposit (FD) interest rates, impacting risk-averse investors and senior citizens who rely on stable returns.

Banks like the State Bank of India (SBI), Bank of Baroda, HDFC Bank and Canara Bank have cut FD rates, with reductions ranging from 10-25 basis points since June 2025.

Here are 15 banks that offer the highest interest rates on fixed deposits in a declining interest rate scenario. The best rates offered by these banks on three-year FDs (of up to Rs 1 crore) for resident, retail, and non-senior citizens have been taken into account. The data compiled by BankBazaar is as of July 4, 2025.

Suryoday Small Finance Bank

Suryoday Small Finance Bank offers an interest rate of 8.4 percent on FDs with a tenor of three years. Among small finance banks, it offers the best interest rate. In three years, a Rs 1-lakh FD would grow to Rs 1.25 lakh.

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank offers an interest of 8 percent on three-year FDs. A deposit of Rs 1 lakh here will grow to Rs 1.24 lakh on the maturity date.

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Jana Small Finance Bank

Jana Small Finance Bank offers an interest rate of 7.75 percent on FDs of the same tenor. If you invest Rs 1 lakh, the amount would grow to Rs 1.23 lakh on maturity.

Equitas Small Finance Bank

Equitas Small Finance Bank offers an interest of 7.6 percent on three-year FDs. A deposit of Rs 1 lakh here will grow to Rs 1.23 lakh on the maturity date.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank offers an interest rate of 7.5 percent on FDs of the same tenor. If you were to invest Rs 1 lakh, the amount would grow to Rs 1.23 lakh on maturity.

Bandhan Bank and DCB Bank

Both the banks offer an interest rate of 7.4 percent for a three-year FD, meaning Rs 1 lakh investment would become Rs 1.22 lakh on the date of maturity.

J&K Bank

J&K Bank offers an interest rate of 7.3 percent on FDs of the same tenor. If you invest Rs 1 lakh, the amount would grow to Rs 1.22 lakh on maturity.

ESAF Small Finance Bank

ESAF Small Finance Bank offers an interest rate of 7.25 percent on FDs of the same tenor. If you invest Rs 1 lakh, the amount would grow to Rs 1.22 lakh on maturity.

RBL Bank and AU Small Finance Bank

These banks offer an interest rate of 7.1 percent for a three-year FD. It would mean that Rs 1 lakh will become Rs 1.21 lakh on the date of maturity.

Central Bank of India, CSB Bank, IndusInd Bank and Yes Bank

These banks offer an interest rate of 7 percent for a three-year FD, which would turn Rs 1 lakh investment into Rs 1.21 lakh on the date of maturity.

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Investment strategy in a declining interest rate environment

The RBI's rate cut, seeking to boost economic growth, requires depositors to adjust their investment strategies to effectively navigate the shifting interest rate environment.

Adopt a laddering strategy by dividing your FD investments into multiple tenures, managing interest rate risks and maintaining liquidity. This approach involves spreading investments across FDs with staggered maturity periods, ensuring regular access to funds, while optimising returns.

Safety net

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, guarantees the safety of fixed deposits of up to Rs 5 lakh.