FD interest rates: Most banks typically offer a higher rate of interest on their long-term fixed deposits whereas they offer a lower rate when the FD tenure is short. For instance, a fixed deposit of six months typically offers a rate which is lower than that of a 2-year-term deposit.
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Before you invest in a fixed deposit, it is vital to compare the deposit rates offered by different banks. Here we list out the interest rates offered by different banks in both private and public sector. Meanwhile, it is important to note that depositors tend to opt for a financial institution with which it shares a long term banking relationship.
However, there is no harm in opening an account in a bank that offers a higher rate of interest, which can lead to a considerably higher income over a long period of time.
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For instance, an extra 1 percent interest on an FD amounting to ₹5 lakh for 3 years can lead to an extra income of ₹15,000. This ‘extra’ amount becomes ₹30,000 when FD is of to ₹10 lakh.
Additionally, most banks typically offer a higher rate of interest on their long-term fixed deposits whereas they offer a lower rate when the FD tenure is short. For instance, a fixed deposit of six months typically offers a rate which is lower than that of a 2-year-term deposit.
Here we share interest rates offered by eight top banks on their three-year fixed deposits. Let us take a look at them:
Private banks
As one can see in the table below, HDFC Bank offers 7 percent per annum to general citizens and 7.5 percent to senior citizens on its 3-year fixed deposit. The latest rates came into force on July 24 this year.
ICICI Bank offers 7 percent and 7.5 percent to general citizens and senior citizens on its 3-year fixed deposits. Kotak Mahindra Bank offers 7 percent to general citizens and 7.6 percent to senior citizens. These rates were introduced on June 14, 2024.
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| Bank | General Citizens (%) | Senior Citizens (%) |
| HDFC Bank | 7 | 7.5 |
| ICICI Bank | 7 | 7.5 |
| Kotak Mahindra | 7 | 7.6 |
| Federal Bank | 7 | 7.5 |
| SBI | 6.75 | 7.25 |
| Bank of Baroda | 7.15 | 7.65 |
| Punjab National Bank | 7 | 7.5 |
| Union Bank of India | 6.7 | 7.2 |
Federal Bank offers 7 percent and 7.5 percent to general and senior citizens as per the latest announcement on Oct 16.
State lenders
Meanwhile, State Bank of India (SBI) offers slightly lower rate of 6.75 percent to general citizens and 7.25 percent to senior citizens. These rates were introduced on June 15 this year.
Bank of Baroda, meanwhile, offers slightly higher rate of 7.15 percent to general citizens and 7.65 percent to senior citizens. The state lender rolled out these rates on Oct 14.
Punjab National Bank offers 7 per cent and 7.5 percent to general citizens and senior citizens, respectively on its three year fixed deposit. Lastly, Union Bank of India offers the lowest of all i.e., 6.70 and 7.20 percent to general citizens and senior citizens, respectively.
