ICICI, Federal, and Union Bank lead the pack, offering up to 7.10% for senior citizens on 3-year deposits amid a declining rate environment.
Indian savers planning to open a Fixed Deposit (FD) must navigate a competitive landscape as banks adjust rates. In a market shaped by recent central bank policies, a comparison of long-tenure deposits is crucial for maximizing returns. Here’s a detailed breakdown of the interest rates offered by eight major public and private sector banks on their three-year term deposits for both regular and senior citizens.
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The most competitive rates for a three-year deposit are currently offered by ICICI Bank, Federal Bank, and Union Bank of India. All three provide an interest rate of 6.60% to regular citizens and a higher rate of 7.10% to senior citizens. They are closely followed by Bank of Baroda, which offers 6.50% and 7.00% to regular and senior depositors, respectively.
This data highlights a key policy for savers, particularly retirees. Banks consistently offer a premium to senior citizens, typically a 50 basis point (0.50%) higher interest rate than what is available to the general public. This policy provides a significant boost to those relying on interest income. Investors looking to secure the best possible return should compare these top offers before committing their funds.
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Here is a comparison of the three-year FD interest rates from the eight leading banks:
| Bank | Regular Citizen Rate (%) | Senior Citizen Rate (%) |
|---|---|---|
| ICICI Bank | 6.60 | 7.10 |
| Federal Bank | 6.60 | 7.10 |
| Union Bank of India | 6.60 | 7.10 |
| Bank of Baroda | 6.50 | 7.00 |
| HDFC Bank | 6.45 | 6.95 |
| Kotak Mahindra Bank | 6.40 | 6.90 |
| Punjab National Bank (PNB) | 6.40 | 6.90 |
| State Bank of India (SBI) | 6.30 | 6.80 |
The current market is defined by a declining interest rate cycle. This trend is a direct result of the Reserve Bank of India (RBI) cutting its key repo rate by a total of 100 basis points across three monetary policy meetings this calendar year. While the RBI kept the rate unchanged in its most recent announcement, the previous cuts have already prompted commercial banks to lower their own lending and deposit rates.
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In this environment of falling interest rates, it is vital for investors to act decisively. Comparing offers from different banks is the first step to securing a favourable return. With the general trend pointing downwards, locking in funds in a long-tenure FD at the current higher rates could be a prudent financial decision, especially for conservative investors and senior citizens seeking stable, predictable income.
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