If you want to save your money for 3 years, investing in a fixed deposit can be your friend. FD is a common financial tool used by investors wanting to save their money safely and get guaranteed returns. Different banks and NBFCs (Non-Banking Financial Companies) offer attractive interest rates for you to save and grow money as per financial suitability,
Let’s find out the different banks offering the best 3-year FD interest rates.
About FD
A fixed deposit (FD) is a safe investment option in which an investor deposits a lump sum of money for a particular period at a fixed interest rate. The primary benefit of a fixed deposit is the predictability it gives in terms of returns and the security of the principal amount.
Fixed deposits are a great option for cautious investors who value capital preservation along with a consistent income source. FDs often provide greater interest rates than normal savings accounts, making them an appealing option for storing extra cash. A fixed deposit’s term can range from a few months to several years, allowing investors to match their investment horizon to their financial goals.
One notable advantage of fixed deposits is their low-risk profile, as they are usually insured up to ₹5 lakhs under DICGC. You can also get a loan against your FD up to a certain amount allowed by your bank and prematurely withdraw your money in return for a penalty.
Best FD Interest Rates for 3-Year Tenure – 2024
Before applying for a fixed deposit account with any bank, comparing the interest rates offered by different banks is always recommended. It helps you organise your finances as per your future goals and take advantage of getting the highest return.
Here we have provided two different lists of large and small banks in India and their 3-year fixed deposit rate.
1. Bank FD Interest Rate for 3-Year
Here is the list of FD rates for 3 years for different private and public sector banks in India.
| Bank | General Citizen | Senior Citizen |
| ICICI Bank | 7.00% p.a. | 7.50% p.a. |
| Punjab National Bank | 7.00% p.a. | 7.50% p.a. |
| Kotak Mahindra Bank Ltd. | 6.50% p.a. | 7.00% p.a. |
| State Bank of India | 6.50% p.a. | 7.00% p.a. |
| HDFC Bank Ltd. | 7.00% p.a. | 7.50% p.a. |
| Union Bank of India | 6.70% p.a. | 7.20% p.a. |
| UCO Bank | 6.30% p.a. | 6.80% p.a. |
| Bank of India | 6.50% p.a. | 7.00% p.a. |
| Federal Bank | 6.60% p.a. | 7.10% p.a. |
| Axis Bank | 7.10% p.a. | 7.60% p.a. |
| Canara Bank | 6.80% p.a. | 7.30% p.a. |
| Bank of Baroda | 7.05% p.a. | 7.55% p.a. |
| IndusInd Bank | 7.25% | 8.00% |
2. Small Finance Bank FD Interest Rate for 3-Year
Here is a list of small finance banks offering FD for 3 years with their interest rate for general and senior citizens.
| Bank | General Citizen | Senior Citizen |
| North East Small Finance Bank | 7.75% p.a. | 8.50% p.a. |
| Ujjivan Small Finance Bank | 7.20% p.a. | 7.70% p.a. |
| Suryoday Small Finance Bank | 8.60% p.a. | 9.10% p.a. |
| Capital Small Finance Bank Limited | 5.50% p.a. | 6.00% p.a. |
| Jana Small Finance Bank | 8.50% p.a. | 9.00% p.a. |
| ESAF Small Finance Bank | 6.75% p.a. | 7.25% p.a. |
| Utkarsh Small Finance Bank | 8.50% p.a. | 9.10% p.a. |
| Fincare Small Finance Bank | 8.00% p.a. | 8.60% p.a. |
| Equitas Small Finance Bank | 8.00% p.a. | 8.50% p.a. |
| AU Small Finance Bank Ltd | 8.00% p.a. | 8.50% p.a. |
Conclusion
Investing money in fixed deposits is easy and fast, with banks offering online services to do so. You can choose any tenure to fix your money as per your present financial suitability and future monetary goals. Before booking an FD for 3 years, make sure to compare 3-year FD interest rates provided by different banks to make an informed decision on your finances.
Along with rates, make sure to read its terms and conditions properly to avoid any financial discrepancies later in the tenure.
FAQs
To calculate your FD returns, use an online fixed deposit calculator that will give you results on your investment accurately and instantly.
If you invest ₹50000 in an Axis FD for 3 years, the interest rate you will get is 7.10% if you’re a general citizen and 7.60% if you are a senior citizen.
IndusInd Bank offers the highest rate of interest on a 3-year FD scheme. As a senior citizen, you get an interest rate of 8.00% p.a. and 7.25% p.a. if you are a general citizen.
Yes. Your income from interest on a 4 year fixed deposit scheme will be taxable as per your tax bracket.
State Bank of India allows you to prematurely withdraw your fixed deposit of 3 years. However, a penalty of 0.50% and 1.00% is charged for FD amounts ₹5 lakhs and more than ₹5 lakhs, respectively.
Capital Small Finance Bank Ltd. offers the lowest interest rate on a 3-year fixed deposit scheme. 5.50% and 6.00% interest are applicable for general and senior citizens respectively.
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
