Fixed deposit rates vary across banks and also depend on the amounts and lock-in periods. Rates offered by top banks in India have some variations based on the time period.

The Reserve Bank of India, under Governor Sanjay Malhotra, decided to cut the repo rate by 25 basis points to 6.25% last week. A lower repo rate from the central bank makes borrowing cheaper as the banks can borrow money at a lower rate from the central bank.

“Fixed deposit rates will not go down immediately, due to the liquidity problem in the system. The banks still want deposits to come in. One more rate cut will bring down rates, but I don’t expect another rate cut,” Arnav Pandya, founder of Moneyeduschool said.

As things stand, a higher interest rate is offered on fixed deposits to senior citizens across various time periods and deposit amounts. The table below shows the interest rates that various banks are offering for senior citizens.

The highest interest rate offering over the one-year period comes from Yes Bank as they offer 7.75% interest for senior citizens. The second highest offering is by Bank of Baroda as they offer 7.35% interest over the one-year period. Closely following is the Punjab National Bank, offering 7.30% interest for a one-year fixed deposit.

Kotak Mahindra Bank offers 7% interest while Canara Bank offers 6.85% for senior citizens. HDFC, Axis and ICICI Bank offer 6.50% interest over the one year period, which is the lowest interest offering among the pack.

In the three-year category, the highest interest offered is 7.65% which is offered by both Kotak Mahindra Bank and Bank of Baroda. Axis bank closely follows with 7.60% interest for the three-year period. The lowest offering for this period for senior citizens is from Yes Bank with 7.25% interest.

Finally, in the five-year period, the highest offering of 7.60% interest comes from Axis Bank and Kotak Mahindra Bank. While the lowest offering for senior citizens for a five-year fixed deposit is by Punjab National Bank at 7%.

Term-deposit interest rates are higher due to the lock-in period that these come with. Before deciding to park one’s money in a fixed deposit, it is important to have clarity on the time period.

. Read more on Personal Finance by NDTV Profit.In the five-year period, the highest offering of 7.60% interest comes from Axis Bank and Kotak Mahindra Bank.  Read MorePersonal Finance 

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