FD Interest Rates: The Reserve Bank of India (RBI) cut the repo rate by 0.25% on April 9, 2025, following a 0.50% cut since February.
As a result, many banks have reduced interest rates on Fixed Deposits (FDs). This has affected investors, especially senior citizens who rely on FDs for regular income.
In addition, some special FD schemes—like SBI’s Amrit Kalash and Bank of India’s 400-day FD—have been discontinued.
However, the good news is that a few banks are still offering attractive interest rates on 3-year FDs, making them a good option for conservative investors.
Top Banks Offering Best 3-Year FD Rates
1. Equitas Small Finance Bank
General Public: 7.75% → ₹1 lakh becomes ₹1.26 lakh
Senior Citizens: 8.25% → ₹1 lakh becomes ₹1.28 lakh
2. AU Small Finance Bank
General Public: 7.5% → ₹1 lakh becomes ₹1.25 lakh
Senior Citizens: 8% → ₹1 lakh becomes ₹1.27 lakh
3. Canara Bank
General Public: 7.2% → ₹1 lakh becomes ₹1.24 lakh
Senior Citizens: 7.7% → ₹1 lakh becomes ₹1.26 lakh
4. Bank of Baroda
General Public: 7.15% → ₹1 lakh becomes ₹1.24 lakh
Senior Citizens: 7.65% → ₹1 lakh becomes ₹1.26 lakh
5. HDFC, ICICI, Axis Bank
General Public: 6.9% → ₹1 lakh becomes ₹1.23 lakh
Senior Citizens: 7.4% → ₹1 lakh becomes ₹1.25 lakh
6. SBI and PNB
General Public: 6.75% → ₹1 lakh becomes ₹1.22 lakh
Senior Citizens: 7.25% → ₹1 lakh becomes ₹1.24 lakh
7. Union Bank of India
General Public: 6.7% → ₹1 lakh becomes ₹1.22 lakh
Senior Citizens: 7.2% → ₹1 lakh becomes ₹1.24 lakh
8. Bank of India
General Public: 6.5% → ₹1 lakh becomes ₹1.21 lakh
Senior Citizens: 7% → ₹1 lakh becomes ₹1.23 lakh
9. Indian Bank
General Public: 6.25% → ₹1 lakh becomes ₹1.20 lakh
Senior Citizens: 6.75% → ₹1 lakh becomes ₹1.22 lakh
Who Should Invest?
If you’re looking for safe and fixed returns, small finance banks like Equitas and AU Small Finance Bank are currently offering the highest interest rates, especially for senior citizens, who get over 8%.
Keep in mind:
Interest rates may change, so check the latest rates on the bank’s official website or by visiting a branch.
FD interest is taxable.
Senior citizen rates apply only to those aged 60 or above.
In today’s environment, 3-year FDs with small finance banks remain a secure investment option with good returns.
