After the Reserve Bank of India (RBI) reduced the repo rate three times in a row, banks also cut down the interest rates on fixed deposits (FDs).
This has led to lower returns for FD investors. The most affected are senior citizens, as they rely heavily on the steady income from FDs.
However, not all is lost—some banks are still offering attractive interest rates, especially for 3-year FDs. In fact, certain banks are giving up to 8.50% interest.
Higher Interest in Small Finance Banks
Utkarsh Small Finance Bank is offering 8.50% interest on 3-year FDs for senior citizens. If you invest ₹1 lakh, it will grow to ₹1.26 lakh.
Jana Small Finance Bank gives 8.25% interest. A ₹1 lakh investment will grow to ₹1.25 lakh.
Suryoday Small Finance Bank offers 8.15% interest, which means ₹1 lakh becomes ₹1.24 lakh after 3 years.
Yes Bank provides 7.85% interest, making ₹1 lakh turn into ₹1.24 lakh on maturity.
Bandhan Bank, Equitas Small Finance Bank, and Unity Small Finance Bank each offer 7.75% interest, where ₹1 lakh becomes ₹1.23 lakh.
Ujjivan Small Finance Bank and RBL Bank offer 7.70% interest, which grows ₹1 lakh to ₹1.23 lakh.
Other Banks Offering Good Returns
IndusInd Bank is giving 7.50% interest on 3-year FDs. A ₹1 lakh deposit will become ₹1.23 lakh at maturity.
DCB Bank, IDFC First Bank, and Jammu & Kashmir Bank are offering 7.25% interest, turning ₹1 lakh into ₹1.22 lakh after 3 years.
