FD interest rates: These 7 banks offer highest rates on 3-year fixed deposits. Check details
With RBI cutting benchmark interest rate by a total fo 50 basis points in two months, most banks are expected to cut interest they offer on fixed deposits (FDs)
Reserve Bank of India's monetary policy committee (MPC) on Wednesday slashed repo rate by 25 basis points for the second consecutive time. With repo rate now lower by 50 basis points to 6 percent per annum, banks are expected to cut down fixed deposit (FD) interest rates sooner than later.
It is, therefore, recommended to lock your savings into fixed deposits (FDs) for a medium to long term if you are planning to invest in some safe instruments.
Here, we list out 3-year FDs of top seven banks:
I. State Bank of India (SBI): The state lender offers 6.75 percent to investors on 3-year fixed deposit to general citizens and 7.25 percent to senior citizens.
II. Bank of Baroda (BOB): This state lender offer 7.15 percent and 7.65 percent to general citizens and senior citizens, respectively, on 3-year fixed deposits with effect from April 7, 2025.
III. IDFC Bank: This private bank offers 6.8 percent per annum interest to general citizens and 7.3 percent to senior citizens on three year fixed deposits.
| Banks | Regular (%) | Senior (%) |
|---|---|---|
| State Bank of India (SBI) | 6.75 | 7.25 |
| Bank of Baroda | 7.15 | 7.65 |
| IDFC Bank | 6.8 | 7.3 |
| HDFC Bank | 7 | 7.5 |
| ICICI Bank | 7 | 7.5 |
| Kotak Mahindra Bank | 7 | 7.5 |
| Union Bank of India | 6.7 | 7.2 |
(Source: Bank websites)
IV. HDFC Bank: The largest private bank offers 7 percent and 7.5 percent, respectively, to general and senior citizens on their 3-year fixed deposits.
V. ICICI Bank: This private bank offers the same interest rates as HDFC Bank on three year fixed deposits i.e., 7 percent to general citizens and 7.5 percent to senior citizens.
VI. Kotak Mahindra Bank: This private bank also offers the same interest rates. It offers 7 percent to general citizens and 7.5 percent to senior citizens.
VII. Union Bank of India: This state lender offers 6.7 percent to general citizens on an amount which is less than ₹3 crore and 7.2 percent to senior citizens. on an FD of three years.
Meanwhile, it is important to note that investment in fixed deposits (FDs) delivers muted returns and income earned on fixed deposits is taxable as per the applicable slab rates. Therefore, it is recommended to invest in fixed deposits only for assured returns and for the convenience it offers to withdraw anytime unlike in other financial instruments such as public provident fund (PPF).
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