Best 3-Year FD Rates: Which Bank Offers Highest Interest?

With the Reserve Bank of India (RBI) keeping the repo rate unchanged at 6.5% for the 10th time, experts advise locking your savings in fixed deposits (FDs) now. If inflation eases in the future, interest rates may decline, reducing FD returns. Here is a look at which banks currently offer the most attractive interest rates on three-year FDs.

Why Now Is the Best Time to Invest in FDs?

Since future interest rates could fall, locking in higher rates now will maximize your returns. Banks, especially private ones, are currently offering competitive rates. Below is a comparison of three-year FD rates from various banks and how much your investment will grow.

FD Interest Rates Comparison Table (As of October 8, 2024)

Key Highlights

• DCB Bank leads the race among private sector banks, offering a 7.55% interest rate on a 3-year FD. Your Rs. 1 lakh investment will grow to Rs. 1.23 lakh.
• RBL Bank follows closely with a 7.50% interest rate, resulting in the same Rs. 1.23 lakh return over three years.
• Public sector banks like Bank of Baroda offer the highest rate among government banks at 7.15%, maturing to Rs. 1.21 lakh.
• Federal Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank are providing a 7% rate, leading to Rs. 1.21 lakh after three years.

What Should Investors Do Now?

Given the possibility of a rate cut in the future, locking in these high FD rates now makes financial sense. Private banks are offering better returns than public ones, but both sectors present solid options. For those looking to secure stable growth, a three-year FD can be a good choice.

Make sure to compare rates across banks and choose one that aligns with your financial goals.