FD interest rates: Before you lock your savings into a fixed deposit (FD) account, you must compare the interest rates offered by different banks. Typically, long-term FDs deliver a relatively higher return over their shorter counterparts. For instance, most banks generally give a higher interest rate on their 3-year FDs vis-à-vis 1-year FDs. But this is not a rule of thumb.
Here, we list out interest rates offered by all the top banks – private as well as state banks on their 3-year fixed deposits so that one can choose the one which offers a higher return. Even a small difference of 50 bps can make a significant difference to your overall return.
For instance, when you invest ₹10 lakh in a fixed deposit (FD) account, a bank that offers a higher interest of 50 bps can lead to extra savings of ₹15,000 over 3 years.
Top banks offering the highest interest on 3-year FDs
I. HDFC Bank: The largest private bank offers 6.45% to its regular depositors on a 3-year fixed deposit and 6.95% to senior citizens.
II. ICICI Bank: This private bank also offers 6.45% on 3-year FD to regular citizens and 6.95% to senior citizens.
III. Kotak Mahindra Bank: This private bank offers 6.4% to regular citizens on a tenor of 3 years and 6.9% to senior citizens
IV. Federal Bank: This private bank offers 6.75% and 7.25% on 3-year FDs to regular and senior citizens, respectively, according to the latest rates that became effective on 1 January 2026.
State lenders
V. State Bank of India (SBI): The largest lender in India offers 6.3% to regular citizens on its 3-year fixed deposit and 6.8% to senior citizens.
VI. Union Bank of India: This state lender offers 6% to regular citizens and 6.5% to senior citizens on its 3-year fixed deposits, shows the latest rates as on 5 December 2025.
VII. Canara Bank: This state lender offers 6.25% to regular citizens and 6.75% to senior citizens on 3-year fixed deposits, as per the rates that came into force on 5 January 2026.
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