Term Deposit Interest Rates: 6 Banks Offering the Best Yields on Their 3-Year Term Deposits

With the Reserve Bank of India (RBI) expected to cut its repo rate later this year, it is considered a good time to lock up your money in fixed deposits.

Ideally, it is possible to lock the money in for a long period of time in order to take full advantage of the high interest rates that are in effect. In general, the interest rate increases with the duration of the deposit. This means that the longer the duration, the higher the interest rate and the shorter the duration, the lower the interest rate.

Here we present you an overview of the main banks and the interest rates they offer on 3-year term deposits:

As we can see in the table below, the highest interest rate of 7.25% is given by Punjab National Bank to regular depositors on 3 year deposits and 7.75% to senior citizens.

At the same time, HDFC Bank is offering 7% on its 3-year deposits to ordinary citizens and 7.5% to senior citizens.

Similarly, ICICI Bank is also offering 7% per annum on 3-year deposits, while an additional 50 basis points is offered to senior citizens.)

(Interest rates offered on 3-year term deposits)

Bank of Baroda offers 6.75% per annum for 3-year deposits and 7.25% for senior citizens. State Bank of India (SBI) offers 7% for common citizens and 7.5% for senior citizens. Kotak Mahindra Bank also offers the same rate of interest on its 3-year deposits.

Two private lenders have increased their FD rates

It is worth mentioning here that ICICI Bank and Axis Bank have recently revised their interest rates on fixed deposits (FDs).

ICICI Bank has revised the interest rates on fixed deposits effective July 2. The new interest rates range from 3 to 7.20 per cent for common citizens and 3.5 to 7.75 per cent for senior citizens.

Meanwhile, Axis Bank has revised the interest rates on fixed deposits effective July 1.

Interest rates range from 3 to 7.2% for ordinary citizens and from 3.5 to 7.75% for senior citizens.