The Reserve Bank of India’s repo rate cut on April 9, 2025 — a 25 basis point reduction, bringing the cumulative cut to 50 basis points since February 2025 — has triggered a wave of changes in fixed deposit (FD) interest rates across India. Most major banks have slashed their FD rates, particularly affecting risk-averse investors, including senior citizens who rely on FDs for steady income.

In this evolving landscape, some banks continue to offer attractive interest rates on 3-year fixed deposits, with rates as high as 7.75% for general investors and 8.25% for senior citizens. Let’s take a closer look at these banks and understand which ones are providing the best returns on fixed deposits in 2025.

Special FD Schemes Withdrawn Post Rate Cut

Following the RBI’s repo rate adjustments, several banks have withdrawn special-tenure FD schemes. Two major examples include:

• State Bank of India’s Amrit Kalash scheme.

• Bank of India’s 400-day plan.

These schemes had been popular for offering higher-than-usual rates. Their discontinuation signals banks' response to the softer interest rate environment.

Top Banks Offering Highest 3-Year FD Rates (As of April 29, 2025)

Below is a detailed breakdown of top Indian banks still offering competitive 3-year FD rates, according to BankBazaar and Moneycontrol Research. These rates apply to deposits up to ₹1 crore.

Equitas Small Finance Bank

• Interest Rate for General Public: 7.75%

• Maturity Value for ₹1 Lakh: ₹1.26 lakh

• Interest Rate for Senior Citizens: 8.25%

• Maturity Value for ₹1 Lakh: ₹1.28 lakh

Equitas tops the list with the highest 3-year FD rate, making it an attractive choice for investors seeking maximum yield.

AU Small Finance Bank

• Interest Rate for General Public: 7.5%

• Maturity Value for ₹1 Lakh: ₹1.25 lakh

• Interest Rate for Senior Citizens: 8%

• Maturity Value for ₹1 Lakh: ₹1.27 lakh

AU Small Finance Bank offers solid returns and is popular among investors in both urban and semi-urban areas.

Canara Bank

• Interest Rate for General Public: 7.2%

• Maturity Value for ₹1 Lakh: ₹1.24 lakh

• Interest Rate for Senior Citizens: 7.7%

• Maturity Value for ₹1 Lakh: ₹1.26 lakh

As one of India’s leading public sector banks, Canara Bank provides stable and reliable FD returns for both demographic segments.

Bank of Baroda

• Interest Rate for General Public: 7.15%

• Maturity Value for ₹1 Lakh: ₹1.24 lakh

• Interest Rate for Senior Citizens: 7.65%

• Maturity Value for ₹1 Lakh: ₹1.26 lakh

Bank of Baroda remains consistent in offering competitive mid-range FD rates.

HDFC Bank, ICICI Bank, and Axis Bank

• Interest Rate for General Public: 6.9%

• Maturity Value for ₹1 Lakh: ₹1.23 lakh

• Interest Rate for Senior Citizens: 7.4%

• Maturity Value for ₹1 Lakh: ₹1.25 lakh

All three private sector giants offer identical rates, making them safe options with digital ease of investing.

State Bank of India (SBI) and Punjab National Bank (PNB)

• Interest Rate for General Public: 6.75%

• Maturity Value for ₹1 Lakh: ₹1.22 lakh

• Interest Rate for Senior Citizens: 7.25%

• Maturity Value for ₹1 Lakh: ₹1.24 lakh

Despite ending special schemes, SBI and PNB continue to offer moderate returns suitable for conservative investors.

Union Bank of India

• Interest Rate for General Public: 6.7%

• Maturity Value for ₹1 Lakh: ₹1.22 lakh

• Interest Rate for Senior Citizens: 7.2%

• Maturity Value for ₹1 Lakh: ₹1.24 lakh

Union Bank presents an adequate option for those who seek nationalized bank safety along with slightly better returns.

Bank of India

• Interest Rate for General Public: 6.5%

• Maturity Value for ₹1 Lakh: ₹1.21 lakh

• Interest Rate for Senior Citizens: 7%

• Maturity Value for ₹1 Lakh: ₹1.23 lakh

Following the withdrawal of its 400-day scheme, Bank of India’s 3-year FD has become the primary fixed-income option for its customers.

Indian Bank

• Interest Rate for General Public: 6.25%

• Maturity Value for ₹1 Lakh: ₹1.20 lakh

• Interest Rate for Senior Citizens: 6.75%

• Maturity Value for ₹1 Lakh: ₹1.22 lakh

Indian Bank’s FD rates are among the lowest in the list, but it remains a safe option for long-term savers.

Senior Citizens: Still in a Better Spot

Despite the broad decline in FD rates, senior citizens are still eligible for 50 basis points higher interest, which preserves some of their purchasing power amid falling yields.

Banks like Equitas, AU Small Finance Bank, and Canara Bank are clear winners in this regard, offering above 8% rates for senior citizens.

RBI's Rate Cut: The Underlying Cause

The RBI’s 50 basis point repo rate cut since February 2025 was aimed at stimulating economic growth amid slowing inflation. While this benefits borrowers, it puts pressure on deposit yields, impacting those relying on FDs.

How ₹1 Lakh Grows Over 3 Years (Comparison Table)

Conclusion: Where Should You Invest Now?

If you're a risk-averse investor looking for stable 3-year returns, Equitas Small Finance Bank and AU Small Finance Bank are leading options. For senior citizens, these banks along with Canara Bank offer the best interest rates currently available.

In the current economic environment shaped by RBI's rate adjustments, it's critical to compare FD rates regularly and choose banks offering higher yields, especially when special schemes have been withdrawn.

The Upcoming IPOs in this week and coming weeks are Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries, Arunaya Organics.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.