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10 Banks Offering The Highest Interest Rates On 3-5 Years’ Fixed Deposits

·2-min read


Most banks have reduced their fixed deposit interest rates in the recent past. This is because the Reserve Bank of India has kept the repo rate unchanged at a low of 4% for a year now to counter the economic fallout of the Covid-19 pandemic. Fixed deposits (FDs) are a popular investment option in our country as they come with multiple tenure options of 7 days to 10 years, offer assured returns, provide ease of investment process and high liquidity. However, low-interest rates have been a cause of worry for countless risk-averse investors like senior citizens, who often rely on their FD returns not just to accomplish their financial goals but also for their day-to-day expenses. That being said, there are still a few private and small finance banks that are currently offering above-average FD returns. Investors could consider investing a portion of their funds in FDs of these banks after a thorough risk assessment, and if doing so is in line with their returns expectations and risk appetite.

So, if you’re planning to open an FD account, here is a list of 10 banks that are currently offering the highest interest rates in the country for FDs with tenures between 3 to 5 years. Senior citizen depositors usually get preferential rates by up to 50 basis points over and above the normal rates.

Banks Offering the Highest Interest Rates on 3-5 Years’ Fixed Deposits

Bank Name

Bank Type

Highest advertised interest rate on 3-5 Years’ FDs (in % p.a.)

Suryoday Small Finance Bank

Small Finance Bank

7.25

Ujjivan Small Finance Bank

Small Finance Bank

6.75

Jana Small Finance Bank

Small Finance Bank

6.75

Fincare Small Finance Bank

Small Finance Bank

6.5

Yes Bank

Private Bank

6.5

RBL Bank

Private Bank

6.5

DCB Bank

Private Bank

6.5

AU Small Finance Bank

Small Finance Bank

6.25

Equitas Small Finance Bank

Small Finance Bank

6.25

IDFC First Bank

Private Bank

6

Disclaimer: Data as on respective banks’ websites on June 11, 2021. The highest advertised interest rates for FDs with tenures between 3 to 5 years have been considered in the table. All rates for normal FDs amounting to less than Rs.1 crore.

Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.

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