Prior to locking your money into a fixed deposit (FD), it is recommended to compare the interest rates offered by different banks on their term deposits.
Notably, the long-duration fixed deposits tend to give a higher rate of interest whereas the short duration deposits give a lower rate.
It is noteworthy that small differences in interest rates can help in wealth creation over a long period of time. For instance, if you are investing ₹10 lakh in a fixed deposit over 3 years, a difference of 30 basis points can lead to higher savings of ₹9,000.
Additionally, if the difference is 50 basis points, additional savings would have been ₹15,000 over a 5-year period.
Here, we give a lowdown on the interest rates offered by large banks in the private as well as public sector on their three-year deposits.
Highest FD interest rates offered by banks:
HDFC Bank: On a 3-year fixed deposit, this private lender offers 7 percent interest rate to regular citizens and 7.5 percent to senior citizens. These rates came into effect on July 24, 2024.
ICICI Bank: The second largest private bank (ICICI Bank) in India offers the same interest rates as HDFC Bank i.e. 7 per cent and 7.5 percent to regular and senior citizens on 3-year FDs.
Kotak Mahindra Bank: With effect from June 14, this private lender has been offering 7 percent and 7.6 percent to the regular and senior citizens, respectively, on 3-year FDs.
Axis Bank: This bank offers 7.1 percent to regular citizens and 7.6 percent to senior citizens on 3-year FDs with effect from October 21.
SBI: The largest bank in India (SBI) offers 6.75 to regular citizens and 7.25 percent to senior citizens on three-year deposits, as per the interest rates which came into force on June 15.
PNB: With effect from October 1, Punjab National Bank (PNB) has been offering 7 percent interest on its 3-year fixed deposits to regular citizens and 7.5 percent to senior citizens.
For more personal finance news, click here
