Top 4 Banks Offering Interest Rate Upto 7.25%, In 3 Years Fixed Deposits (FDs)

Fixed deposits are not the best choice for the new generation investors, however, the FDs still are holding a huge position in the investment arena. Not just the older generation, but many other people also keep a portion of their money in FDs for security. The assurance behind FDs is the most lucrative factor for investors. Although, according to some analysts, FDs should not be considered as an investment for much profitability, rather it will only save the investors' money.

For the past 4-5 years, investors are lamenting about the FDs mostly because of the low-interest rate on them. All the short-term FDs and Long term FDs are now offering low-interest rates, mostly around 5% for the public. The interest rates for senior citizens are higher by around 0.75%. But earlier, during 2015, FD rates used to stay around 8.25%, which has been degraded over the years.

However, some banks are offering better interest rates than the others in 3 years FD, and the top 4 banks are listed below.

Interest rates on FDs for 3 years:

Bank name	Interest rate for public	Interest rate for senior citizens
Ujjivan Small Finance Bank	6.50%	7.25%
Jana Small Finance Bank	6.75%	7.25%
Yes Bank	6.25%	7.00%
Equitas Small Finance Bank	6.00%	5.50%

The Ujjivan Small Finance Bank, Jana Small Finance Bank, and Equitas Small Finance Bank are the three top small finance banks in India. Yes Bank, on the other hand, is another reputed bank in the country. Additionally, the RBI will secure your FD money up to Rs. 5 lakhs, which makes it absolutely safe to interest in FDs, in any RBI registered bank in the country. So, investing in a small finance bank FD will not be different than investing in any other bank.

The interest rates on FDs depend on the repo rate fixed by RBI, which now stands at 4%. On the other hand, the reverse repo rate is now 3.55%. In the latest MPC meeting on December 8, 2021, the central bank has retained the repo rate same for the 9 consecutive months. So, FD rates have also remained unchanged in the country.

(Also read: FD Interest Rates Are Low, Where Should You Invest Now?)