5 Best Fixed Deposits To Invest For 3 To 5 Years In 2021

Investing in fixed deposits under the debt category, whether you are a non-senior or senior citizen, is essential to have in your portfolio when it comes to a regular flow of income with a fixed rate of return throughout the chosen maturity period. Fixed deposits, in addition to fixed interest rates, allow you to invest for a maturity term ranging from 7 days to 10 years, allowing you to meet a variety of investment objectives. Fixed deposits, on the other hand, provide a blend of capital safety and capital appreciation, since your deposits up to Rs 5 lakhs are insured by the DICGC. Despite the fact that fixed deposit interest rates have been dropping since many banks lowered their interest rates following the Reserve Bank of India's decision to maintain the repo rate constant at 4%, here are the banks that are still offering a decent return on fixed deposits of less than Rs 2 Cr maturing in 3 to less than 5 years.

Top 5 Public Sector Banks Promising Good Returns On 3 to 5 Year FDs

Based on our own research, here are the top 5 public sector banks that are offering the highest interest rates on 3 to 5 years of fixed deposits.

Banks	Regular Interest Rates	Interest rates for senior citizens	W.e.f.
Union Bank of India	5.40%	5.90%	01/09/2021
State Bank of India	5.30%	5.80%	08.01.2021
Punjab & Sind Bank	5.30%	5.80%	16/09/2021
Punjab National Bank	5.25%	5.75%	01.08.2021
Indian Overseas Bank	5.25%	5.75%	09.11.2020
Source: Bank Website

Top 5 Private Sector Banks Offering Best Returns On 3 to 5 Year FDs

Here are the top 5 private sector banks that are currently offering pretty good interest rates on deposits maturing in 3 years to less than 5 years.

Banks	Regular Interest Rates	Interest rates for senior citizens	W.e.f.
RBL Bank	6.30%	6.80%	September 01, 2021
Yes Bank	6.25%	7.00%	3rd November 2021
IndusInd Bank	6.00%	6.50%	July 23rd, 2021
DCB Bank	5.95%	6.45%	17th August 2021
Axis Bank	5.40%	6.05%	10/11/2021
Source: Bank Website

Top 5 Small Finance Banks Providing Highest Interest Rates On FDs of 3 to 5 Years

On deposits of less than Rs 2 Cr maturing in 3 to 5 years, here are the top 5 small finance banks that are currently promising decent returns to both non-senior and senior citizens.

Banks	Regular Interest Rates	Interest rates for senior citizens	W.e.f.
Jana Small Finance Bank	6.75%	7.25%	07/05/2021
Suryoday Small Finance Bank	6.50% to 6.75%	6.50% to 7.00%	September 09, 2021
North East Small Finance Bank	6.50%	7.00%	19th April 2021
Fincare Small Finance Bank	6.50% to 6.25%	7.00% to 6.75%	25th October 2021
Ujjivan Small Finance Bank	6.25%	6.75%	16th August 2021
Source: Bank Website