Before investing in a fixed deposit (FD), it is recommended to compare the interest rates offered by different banks. Typically, banks offer a higher rate of interest to the term deposit of a long tenure. Conversely, short tenure term deposits offer a relatively lower interest rate.
Here, we list out the interest rates offered by banks on their fixed deposits for a three-year tenure. The largest private lender HDFC Bank offers 7 percent interest on its three-year fixed deposit to general citizens, and 7.5 percent to senior citizens. These interest rates came into force on July 24 this year.
ICICI Bank also offers similar rates i.e., 7 percent to general citizens and 7.5 percent to senior citizens. Meanwhile, Kotak Mahindra Bank has been offering 7 percent to general citizens and 7.6 percent to senior citizens with effect from June 14.
Another private bank Federal Bank offers 7 percent to general citizens and senior citizens as per the rates which were announced on October 16.
(Source: Banks’ websites)
State lenders
The largest lender State Bank of India offers 6.75 percent to general citizens and 7.25 percent to senior citizens as per the rates which came into effect on June 15. Union Bank of India offers 6.7 percent to general citizens and 7.2 percent to senior citizens as per the rates which came into force on November 1.
Meanwhile, Bank of Baroda offers an interest of 6.8 percent to general citizens and 7.4 percent to senior citizens according to the rates which came into force on October 14.