Close Menu
    What's Hot

    How to Claim Post Office Money After Account Holder’s Death

    May 31, 2025

    MIT Stops Indian-Origin Student Megha Vemuri from Attending Graduation over Speech on Gaza

    May 31, 2025

    India Eyes Developed Nation Status by 2047: Manufacturing Holds the Key

    May 30, 2025
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    Invest PolicyInvest Policy
    Subscribe
    • Insurance
    • Investment
    • Tax
    • Stocks
    • MF
    • Money
    • Property
    • Schemes
    • More
      • Documents
      • Cards
      • Loan
      • Hindi
    Invest PolicyInvest Policy
    Home » Banks Offering Up to 9% Interest on 3-Year FDs – Don’t Miss the Opportunity!
    Banking

    Banks Offering Up to 9% Interest on 3-Year FDs – Don’t Miss the Opportunity!

    Nisha ChawlaBy Nisha ChawlaOctober 20, 2024No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Banks Offering Up to 9% Interest on 3-Year FDs – Don’t Miss the Opportunity!
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Fixed Deposits (FDs) have always been a popular choice for those seeking safe and steady returns. Right now, many banks are offering lucrative interest rates on FDs, especially for three years. With some banks giving as high as 9%, this could be the best time to lock in your money and enjoy handsome returns before rates begin to decline.

    Here’s a look at the banks offering the highest interest rates on three-year FDs, along with insights on why now might be the perfect time to invest in them.

    Top Banks Offering High Interest on 3-Year FDs

    Several small finance banks are currently leading the pack with their interest rates. These banks typically offer higher rates than larger public and private sector banks to attract more customers. Here are the highest FD interest rates available:

    • Northeast Small Finance Bank: 9.00%
    • Suryoday Small Finance Bank: 8.60%
    • Utkarsh Small Finance Bank: 8.50%
    • Jana Small Finance Bank: 8.25%
    • Unity Small Finance Bank: 8.15%
    • Equitas Small Finance Bank: 8.00%

    In the private banking sector, the highest rates are:

    • DCB Bank: 7.55%
    • RBL Bank: 7.50%
    • SBM Bank India: 7.30%
    • Axis Bank: 7.10%

    For public sector banks, the rates are slightly lower but still attractive for those preferring government-backed institutions:

    • Bank of Baroda: 7.15%
    • Punjab National Bank: 7.00%
    • State Bank of India (SBI): 6.75%

    Why is Now the Right Time to Invest in Fixed Deposits?

    In recent years, the Reserve Bank of India (RBI) has raised the repo rate several times to manage inflation. As a result, banks have been offering higher interest rates on FDs. In its most recent meeting on October 9, 2024, the RBI decided to keep the repo rate steady at 6.5%. This prolonged period of higher repo rates has created a favorable environment for FD investors.

    See also  NPS Vatsalya Yojana: Banks Where You Can Open Accounts to Secure Your Child’s Future

    However, these high returns on FDs may not last long. As inflation stabilizes and the RBI considers cutting rates, banks could start lowering their FD interest rates. So, now is the perfect opportunity to lock in higher rates before they drop.

    How FD Interest is Taxed

    While FDs offer great returns, it’s important to remember that interest earned on them is taxable. The tax is based on the total interest earned, not the principal amount. Here’s how it works:

    • The interest earned is added to your total income and taxed according to your income tax slab.
    • Banks deduct 10% TDS (Tax Deducted at Source) if the interest exceeds Rs. 40,000 for general citizens and Rs. 50,000 for senior citizens.
    • If you don’t provide your PAN card, the bank deducts 20% TDS.

    For example, if Rohan from Delhi earns Rs. 75,000 in interest from FDs, the bank will deduct 10% TDS on the amount over Rs. 40,000:

    • Total interest earned: Rs. 75,000
    • TDS limit: Rs. 40,000
    • TDS deducted by the bank: 10% of Rs. 75,000 = Rs. 7,500

    If Rohan’s total annual income is below Rs. 2.5 lakh, he can submit Form 15G to the bank to avoid TDS. Senior citizens can submit Form 15H under similar circumstances.

    Conclusion

    With banks offering up to 9% on fixed deposits for three years, now is an excellent time to invest. Locking in these higher rates will help you secure steady returns before rates potentially drop in the near future. Just remember to factor in the tax implications and plan your FD investments wisely.

    See also  HDFC Bank Close to Matching Goldman Sachs Market Cap
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleMajor Housing Boom Expected in Delhi-NCR This Diwali with Projects Worth Rs 1 Lakh Crore
    Next Article Best Lifetime Free Credit Cards in 2024: Maximize Savings Without Annual Fees
    Nisha Chawla
    • Facebook

    Nisha Chawla is a seasoned professional with 15 years of experience in banking, insurance, investment, and the debt sector. Holding a B.Com degree, she has been writing for the past five years, offering valuable insights on banking, loans, and financial schemes. Her passion for writing brings clarity to complex financial topics.

    Related Posts

    How to Claim Post Office Money After Account Holder’s Death

    May 31, 2025

    How Safe Is Your Money in Banks? Full Details Inside

    May 8, 2025

    HDFC Bank Close to Matching Goldman Sachs Market Cap

    April 29, 2025

    Cheapest Home Loans: Bank-wise Rate Comparison for April 2025

    April 25, 2025

    ICICI Bank or HDFC Bank: Who’s Leading in 2025?

    April 21, 2025

    How to File a Complaint Against a Bank in India: Step-by-Step Guide

    April 16, 2025
    Add A Comment

    Comments are closed.

    Top Posts

    How to Claim Post Office Money After Account Holder’s Death

    May 31, 2025

    MIT Stops Indian-Origin Student Megha Vemuri from Attending Graduation over Speech on Gaza

    May 31, 2025

    India Eyes Developed Nation Status by 2047: Manufacturing Holds the Key

    May 30, 2025

    Subscribe to Updates

    Get the latest sports news from SportsSite about soccer, football and tennis.

    Advertisement

    Our main motto is to help our customers in making personal finance decisions easy and convenient as per their comfort. We are committed to provide accurate and unbiased information at your doorstep and keep it transparent among our customers.

    We're social. Connect with us:

    Facebook X (Twitter) Instagram Pinterest YouTube
    Top Insights

    How to Claim Post Office Money After Account Holder’s Death

    May 31, 2025

    MIT Stops Indian-Origin Student Megha Vemuri from Attending Graduation over Speech on Gaza

    May 31, 2025

    India Eyes Developed Nation Status by 2047: Manufacturing Holds the Key

    May 30, 2025
    Get Informed

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2025 Invest Policy. Designed by DigiSpiders.
    • Home
    • About Us
    • Contact Us
    • Privacy Policy
    • Terms and Conditions
    • Disclaimer

    Type above and press Enter to search. Press Esc to cancel.