If you are looking for a safe and profitable place to park your hard-earned retirement corpus, we have some fantastic news for you. It seems the golden days—or rather, the “Chandi hi Chandi” days—are truly here for senior citizens. Several banks have recently revised their rates to make Fixed Deposits (FDs) incredibly attractive, specifically for the 3-year tenure. With interest rates climbing as high as 7.75%, your savings can now grow faster than they have in quite some time.
Top Contenders: Who Is Offering the Highest Returns?
When it comes to maximizing returns, private sector lenders are currently leading the race. According to the latest market data, YES Bank has emerged as a top choice, offering a massive 7.75% interest rate on FDs maturing between 3 years to less than 5 years. This is a significant jump compared to standard savings rates.
Close on its heels are Bandhan Bank and RBL Bank. Bandhan Bank is offering 7.70% for deposits held for more than 2 years but less than 3 years, while RBL Bank matches that 7.70% rate for a tenure ranging from 18 months to 3 years. For those looking at a slightly longer specific tenure, DCB Bank is offering 7.65% for a 60-61 month period.
At a Glance: Best FD Rates for Senior Citizens
To help you make a quick comparison, we have compiled the latest interest rates offered by various banks for senior citizens on 3-year (and specific tenure) fixed deposits. Check the table below to see where your bank stands.
| Bank Name | Interest Rate (Senior Citizens) | Tenure / Remarks |
|---|---|---|
| YES Bank | 7.75% | 3 years to < 5 years |
| Bandhan Bank | 7.70% | > 2 years to < 3 years |
| RBL Bank | 7.70% | 18 months to 3 years |
| DCB Bank | 7.65% | 60 to 61 months |
| Jana Small Finance Bank | 7.50% | 3 Years |
| Slice Small Finance Bank | 7.50% | 3 Years |
| Utkarsh Small Finance Bank | 7.50% | 3 Years |
| Tamil Nadu Mercantile Bank | 7.40% | 400 Days Special Scheme |
| SBI (Public Sector) | Up to 7.05% | 5 to 10 Years |
Small Finance Banks vs. Public Giants: What Should You Choose?
While the numbers look tempting, the choice often comes down to comfort and strategy. Small Finance Banks (SFBs) like Jana, Slice, and Utkarsh are aggressively competing with a solid 7.50% return on 3-year FDs. Suryoday Small Finance Bank is also in the mix with a respectable 7.25%.
However, many seniors still prefer the familiarity of public sector giants. It is important to note that the State Bank of India (SBI) is currently offering up to 7.05% for long-term deposits (5-10 years), and Bank of Baroda provides an additional premium of up to 50 basis points for seniors. While these rates are slightly lower than the private and small finance banks, they come with the highest trust factor.
Expert Tip: When booking your FD, don’t just look at the percentage. Experts suggest verifying the bank’s financial stability, ease of online banking, and penalty clauses for premature withdrawal before locking in your money.
With inflation fluctuating, locking in a rate above 7.5% is a smart financial move for the medium term. Check with your branch today to ensure you don’t miss out on these limited-time offers!
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are requested to consult a certified financial advisor before making any investment decisions.
Last Updated: 18 January 2026
