Many investors consider fixed deposits (FDs) as a safe place to put their money, even as they provide less interest than the share market, PPF etc.
However, investing in fixed deposits offers liquidity and ensures interest income periodically. Also, savings in FDs are useful to build an emergency corpus.
These days, most banks have reduced interest rates on FDs, but despite falling interest rates, smaller private banks offer interest rates of up to 6.5 percent as per data compiled by BankBazaar. (as of March 16, 2022)
Here are some banks that are offering the best interest rates on three-year FDs.
Read More: BoB Accountholders Alert! Bank Hikes FD Rates. Know Latest Rates Here
1. IndusInd Bank
Among private banks, this bank offers the best interest rates. Currently, it offers 6.5 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.21 lakh in three years. The minimum investment required is Rs 10,000.
2. RBL Bank
RBL Bank offers 6.30 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.21 lakh in three years.
3. IDFC First Bank
IDFC First Bank offers 6 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.20 lakh in three years.
Read More: 8 things to consider while applying for an education loan
4. Karur Vysya Bank
It offers 5.65 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.18 lakh in three years.
5. Bandhan Bank
The bank is offering 6.25 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.20 lakh in three years. At Bandhan Bank, the minimum investment required is Rs 1,000.
Meanwhile, two other banks – Yes Bank, DCB Bank – offer 6.25 percent interest on three-year FDs. The minimum investment required is Rs 10,000 at DCB Bank and Yes Bank.
