Senior citizen FD rates up to 8.50%: Which banks offer the highest interest on 3- year and 5-year deposits?

The Reserve Bank of India (RBI) increased the repo rate from 5.25% to 5.50% at its Monetary Policy Committee meeting on October 7. Following the hike, banks may revise their fixed deposit (FD) interest rates. However, the timing will depend on their funding requirements and liquidity position.

Adhil Shetty, CEO, Bankbazaar, says some banks revise FD rates within days of an RBI policy change, while others may take several weeks.

Senior citizens can compare fixed deposit rates across public sector banks, private sector banks and small finance banks before choosing a deposit tenure. The following slides list banks offering the highest interest rates on 3-year and 5-year senior citizen FDs in each category.

Among public sector banks, Bank of India offers the highest 3-year FD rate at 7.45%. For a 5-year FD, State Bank of India offers the highest rate at 7.05%. Other competitive options include Punjab National Bank, Canara Bank and Bank of Baroda, depending on the deposit tenure.

Among private sector banks, Bandhan Bank, IndusInd Bank and YES Bank offer 7.75% for 3-year FDs. For a 5-year deposit, DCB Bank offers the highest rate at 8.00% among the banks listed. Other options include RBL Bank, SBM Bank India, Axis Bank, Jammu & Kashmir Bank and ICICI Bank.

Among small finance banks, Jana Small Finance Bank offers the highest 3-year FD rate at 8.30%. For a 5-year deposit, Suryoday Small Finance Bank offers the highest rate at 8.50% among the banks listed. Other banks offering competitive rates include Utkarsh, Shivalik, Ujjivan, AU and slice Small Finance Bank.