Fixed deposits (FDs) remain one of the safest investment options for Indian savers, offering guaranteed returns and financial security. As of October 2025, several banks are providing attractive interest rates for 3-year term deposits, helping investors make their money work harder.
Here’s a look at 7 banks offering the highest FD interest rates for 3-year tenures and what investors should know before investing.
Top Banks Offering Highest 3-Year FD Rates
| Bank Name | FD Rate (General Citizens) | FD Rate (Senior Citizens) | Notes |
|---|---|---|---|
| Fincare Small Finance Bank | 8.00% | Not specified | Among the highest rates in the market for 3-year FDs . |
| Equitas Small Finance Bank | 8.00% | Not specified | Competitive rates with flexible interest payout options . |
| Shriram City Union Finance | 7.95% | Not specified | Attractive rates for 3-year cumulative deposits |
| IDFC FIRST Bank | 7.00% | 7.50% | Offers higher rates for senior citizens |
| HDFC Bank | 6.60% | 7.10% | Senior citizens receive an additional 0.50% interest |
| ICICI Bank | 6.60% | 7.10% | Offers competitive rates with monthly interest payout options |
| Axis Bank | 6.60% | 7.10% | Provides various FD options to suit different financial goals. |
Key Considerations for Investors
Tenure & Goals: 3-year FDs offer moderate-term investment with reasonable returns.
Premature Withdrawal Rules: Check bank policies to avoid penalties if you need early access.
Interest Payout Options: Monthly, quarterly, or cumulative options affect cash flow and compounding.
Senior Citizen Benefits: Eligible senior citizens can earn higher interest rates.
Bank Safety: Prefer banks with strong credit ratings and government backing for secure deposits.
Outlook
FD rates are influenced by RBI repo rates, inflation, and banking competition.
With RBI maintaining moderate monetary policy, 3-year FDs remain attractive for risk-averse investors.
Savers can combine FDs with other fixed-income instruments for a diversified portfolio.
FAQs
Q1: Which bank currently offers the highest 3-year FD rate?
A: Bank A is offering the highest rate at 7.25% for a 3-year term deposit.
Q2: Can senior citizens get higher rates?
A: Yes, senior citizens typically get an additional 0.25%–0.50% interest.
Q3: Is it safe to invest in bank FDs?
A: Yes, especially in banks with strong credit ratings. Government-backed FDs are very secure.
Q4: What is the minimum deposit for these FDs?
A: Minimum deposits vary by bank, usually starting from ₹10,000–₹25,000.
Q5: Can I break my FD before maturity?
A: Yes, but early withdrawal may attract a penalty and reduce interest earned.
Published on : 3rd October
Published by : SMITA
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