After the Reserve Bank of India (RBI) reduced the repo rate three times in a row, banks have reduced the interest rates on fixed deposits (FDs) significantly. This has reduced the return on FDs significantly. Senior citizens have suffered the most because they depend heavily on FDs for their income. However, this does not mean that the options are over. There are still many banks that are offering better interest rates on FDs. We are telling you about such banks that are offering up to 8.50% interest on 3-year FDs. Let’s know where you will get the most benefit.
Great opportunities in small finance banks
Small Finance Banks often offer higher interest rates on FDs than big banks. This is especially beneficial for senior citizens.
Utkarsh Small Finance Bank
Offers an attractive interest rate of 8.50% for senior citizens on 3-year FDs. If a senior citizen invests ₹1 lakh in this bank for three years, it will grow to ₹1.26 lakh on maturity.
Jana Small Finance Bank
Offers an interest rate of 8.25% on 3-year FDs. If a senior citizen invests ₹1 lakh, this amount will grow to ₹1.25 lakh on maturity.
Other banks offering better interest rates
Apart from small finance banks, some other major banks are also offering competitive interest rates on FDs.
Suryoday Small Finance Bank
Offers an interest rate of 8.15% on three-year FDs. A deposit of ₹1 lakh will grow to ₹1.24 lakh on maturity.
Yes Bank
Offers an interest rate of 7.85% on three-year FDs for senior citizens. An investment of ₹1 lakh will grow to ₹1.24 lakh on maturity.
Bandhan Bank, Equitas Small Finance Bank, and Unity Small Finance Bank
Offer an interest rate of 7.75% on three-year FDs for senior citizens. This means an investment of ₹1 lakh will grow to ₹1.23 lakh on maturity.
Ujjivan Small Finance Bank and RBL Bank
Offer an interest rate of 7.70%. An investment of ₹1 lakh will grow to ₹1.23 lakh on maturity.
Investment opportunity in these banks
There are some other banks too that are offering good interest rates on FDs, although slightly lower than the banks mentioned above.
Indusind Bank
Offers an interest rate of 7.50% on 3-year FDs. If you invest ₹1 lakh, this amount will become ₹1.23 lakh on maturity.
DCB Bank, IDFC First Bank, and Jammu and Kashmir Bank
Offer an interest rate of 7.25%. This means that an investment of ₹1 lakh will become ₹1.22 lakh on maturity.