Before you lock your funds in a fixed deposit, it is vital to compare the interest rates offered by different banks. Typically most banks offer somewhat similar interest on the deposits of the same tenure, however, a small difference of, say, 30-40 basis points may account for noticeable difference in wealth generation over a long period.
For instance, if you are investing ₹10 lakh in a fixed deposit over 5 years, a difference of 30 basis points can lead to higher savings of ₹15,000. And if the difference were 50 basis points, additional savings would have been ₹25,000 over a 5-year period.
Therefore, it is advisable to compare the interest rates on fixed deposits offered by different banks before you opt for one. Another consideration that matters is the tenure of fixed deposits. Longer the tenure, higher the savings. Conversely, shorter the time period, smaller the savings.
Here we give a lowdown of fixed deposit interest rates offered by eight different banks on their 3-year fixed deposits.
Thanks to the higher interest rates offered by banks, depositors have raised their investment in term deposits by ₹46,728 in the past one year. Additionally, the share of fixed deposits in total deposits rose to 61.4 per cent in September 2024 from 59.8 per cent a year ago, revealed data released by SBI Research.
Let us find out which bank is offering what interest rate on 3-year fixed deposits
Private banks
As we can see in the table below, HDFC Bank offers 7 percent interest on its fixed deposits to general citizens and 7.5 percent to senior citizens. These new rates came into force on July 24, 2024. ICICI Bank offers 7 percent interest on FDs to general citizens and 50 basis points higher to senior citizens.
Kotak Mahindra Bank offers 7 percent interest on fixed deposits to general citizens and 7.5 percent to senior citizens. These rates were introduced on June 14, 2024. The Federal Bank offers 7 percent interest on fixed deposits to general citizens and 7.5 percent to senior citizens. These rates came into force on October 16.
Read More: List Of Countries Where You Can Directly Pay From Your Indian Bank A/c Via UPI
State lenders
The state lenders are offering somewhat similar interest rates on their fixed deposits. SBI offers 6.75 percent on its 3-year fixed deposit to general citizens and 7.25 percent to senior citizens. These rates came into force on June 15, 2024. Punjab National Bank offers 7 percent and 7.5 percent interest to general citizens and senior citizens, respectively with effect from October 1.
Union Bank of India offers 6.7 percent and 7.2 percent on 3-year fixed deposits with effect from Nov 1. The highest rates are offered by Canara Bank which recently revised its rates early this month. On three-year fixed deposits, the state lender offers 7.4 percent to general citizens and 7.9 percent to senior citizens.
