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10 Best 3-Year FDs With Returns Up To 7.5% For Senior Citizens


In order to gain a regular monthly income after retirement, elderly people always choose to save their savings in fixed deposits (FDs). Investment in FDs is often considered better relative to investment in highly risky stocks or mutual funds. In the last year or so, though, declining bank deposit rates have dramatically reduced their monthly income. This is because of the rapid repo rate cuts from the Reserve Bank of India which makes banks to cut interest rates on fixed deposits through tenures. There are still some banks which offer better rates on three-year FDs for senior citizens, despite falling interest rates.


Considering the rivalry they face in attracting deposits, the smaller private banks appear to top the rate table on fixed deposits. Small private banks promise senior citizens with interest rates of up to 7.50 per cent on three-year FDs. These three-year FD interest rates are higher in contrast with those provided by leading banks in the private and public sector. For example, on their three-year FDs for senior citizens, Yes Bank, DCB Bank and RBL Bank deliver 7.50 percent, 7.45 percent and 7.25 percent interest only. Some private sector banks such as Axis Bank, Kotak Mahindra Bank, ICICI Bank and HDFC Bank offer 5.9%, 5.25%, and 5.65 percent interest on three-year FDs for senior citizens.

Compared with leading private banks, the interest rates provided by small finance banks are stronger. For senior citizens, AU Small Finance Bank and Ujjivan Small Finance Bank offer 7.25 percent and 6.55 percent interest on three-year FDs, respectively. Coming to the public sector banks Canara Bank and Union Bank of India give the highest interest rate of 6 per cent for senior citizens on their three-year FDs. Whereas an interest rate of 5.8 percent on their three-year FDs is currently provided by Bank of India and the State Bank of India (SBI).

10 Best 3-Year FDs With Returns Up To 7.5% For Senior Citizens

Best 3-Year FDs For Senior Citizens With Interest Rates Up To 7.5%

Private Banks ROI per annum in %
Yes Bank 7.50
DCB Bank 7.45
RBL Bank 7.25
IndusInd Bank 7.00
Bandhan Bank 6.40
Public Sector Banks ROI per annum in %
Canara Bank 6.00
Union Bank 6.00
Bank of India 5.80
SBI 5.80
Punjab & Sind Bank 5.75


As given on the respective websites, the details on FDs is as of 6 January 2021. For senior citizens aged between 60-80 years, interest rates are provided for deposit amount less than Rs 1 crore. Quarterly compounding is considered for all FDs and the deposit amount ranges through banks. The amount varies from Rs 100 to Rs 10,000 at private and public banks respectively. Considering the current rate cuts, FDs can be a good and secure bet for senior citizens as the Deposit Insurance and Credit Guarantee Corporation (DICGC), an affiliate of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.

Read more about: fds fixed deposits investment
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