5 Best 3-Year Fixed Deposits For Regular & Senior Citizens

Term deposits are popularly called risk-free instrument because of their guaranteed returns for all types of investors. The capital invested in a Fixed Deposit Scheme is only made once when the account is created for a specific amount of time, and the interest earned on it is determined by the type of bank, tenure, and depositor. A fixed deposit can be opened for as little as seven days or as long as 10 years, and senior citizens receive higher FD interest rates than non-senior citizens, ranging from 0.25 per cent to 0.65 per cent respectively. Money market funds, certificates of deposit (CD), bond funds, and even bank fixed deposits are viable investment choices if you have a three-year or less time period for your investment or personal finance goals. All of these investments, except bank FDs, are risky. So, if you’re a risk-averse investor with a three-year financial planning objective, here are the five best-fixed deposits to invest in.

3-Year FDs Of Public Sector Banks

Union Bank of India and Canara Bank are currently providing higher interest rates on three-year fixed deposits among public sector banks. Check the most recent interest rates (for less than Rs 2 Cr) below:

Banks	Regular FD Rates	Senior Citizen FD Rates	W.e.f.
Union Bank of India	5.50%	6.00%	15/12/2020
Canara Bank	5.40%	5.90%	08.02.2021
Bank of India	5.30%	5.80%	1.06.2021
Punjab & Sind Bank	5.15%	5.65%	15.05.2021
State Bank of India	5.10%	5.60%	08.01.2021
Source: Bank Websites

3-Year FDs of Private Sector Banks

DCB Bank, followed by IndusInd and RBL Bank, are now offering the best interest rates on 3-year fixed deposits for a deposit amount of less than Rs 2 crore among the top private sector banks.

Banks	Regular FD Rates	Senior Citizen FD Rates	W.e.f.
DCB Bank	6.50%	7.00%	15.05.2021
IndusInd Bank	6.50%	7.00%	26.04.2021
RBL Bank	6.10%	6.60%	01.06.2021
Yes Bank	6.00%	6.50%	03.06.2021
Bandhan Bank	5.75%	6.50%	03.02.2021
Source: Bank Websites

3-Year FDs of Small Finance Banks

Interest rates offered by small finance banks are higher than those given by major private and public sector banks. Suryoday Small Finance Bank now offers the highest interest rates on three-year deposits among the small finance banks.

Banks	Regular FD Rates	Senior Citizen FD Rates	W.e.f.
Suryoday Small Finance Bank	7.00%	7.50%	15.02.2021
Ujjivan Small Finance Bank	6.75%	7.25%	05.03.2021
AU Small Finance Bank	6.50%	7.00%	01.04.2021
Jana Small Finance Bank	6.50%	7.00%	07.05.2021
Equitas Small Finance Bank	6.35%	6.85%	01.06.2021
Source: Bank Websites