Safety and high returns: Here are the banks that offer up to 7.55% interest on 3-year fixed deposits

FDs have traditionally been a preferred investment option for individual investors in India, particularly among senior citizens, because of their assurance of consistent returns and perceived security.

The Reserve Bank of India (RBI) has maintained the repo rate at 6.5 per cent for the 10th consecutive time in its bi-monthly Monetary Policy Committee (MPC) review meeting on October 9. But it has changed its stance from “withdrawal of accommodation” to “neutral,” marking a crucial shift in the approach it has adopted since May 2022.

This stance implies readiness to adjust the monetary policy as the economic situation unfolds. If inflation remains below the 4 percent medium-term target, future rate cuts are possible.

Secure your FD rates now

Fixed deposits offer liquidity and assured interest income. According to Adhil Shetty, CEO, BankBazaar.com, "Risk-averse investors should lock in high fixed deposit (FD) rates now, as they're expected to decline in the coming months."

Below  are 15 private and public sector banks that offer the highest interest rates on fixed deposits. Paisabazaar has compiled the data.

The best rates offered by these banks on three-year FDs (of up to Rs 1 crore) for resident, retail, and non-senior citizens have been taken into account. The value is calculated based on quarterly compounding of interest. The data is as of October 8, 2024.

DCB Bank 

DCB Bank offers an interest rate of 7.55 percent on FDs with a tenor of three years. Among private banks, this lender offers the best interest rate. In three years, a Rs 1-lakh FD would have grown to Rs 1.23 lakh.

RBL Bank 

RBL Bank offers an interest of 7.50 percent on three-year  FDs. A deposit  of Rs 1 lakh here will grow to Rs 1.23 lakh on the maturity date.

Also explore: High-return FDs offered by trusted banks and NBFCs on the Moneycontrol app.

SBM Bank India 

SBM Bank India offers an interest rate of 7.30 percent on FDs of the same tenor. If you were to invest Rs 1 lakh, the amount would have grown to Rs 1.22 lakh on maturity.

Bandhan Bank's interest rate of 7.25 percent for a three-year FD would mean that Rs 1 lakh becomes Rs 1.22 lakh on the date of maturity.

IndusInd Bank

At 7.25 percent, opening a Rs 1-lakh FD with IndusInd Bank would yield Rs 1.22 lakh at the end of the term.

YES Bank 

The yield and interest offered by Yes Bank is identical, at Rs 1.22 lakh and 7.25 percent.

Bank of Baroda 

Bank of Baroda offers 7.15 percent interest on three-year FDs, the highest among public sector banks. In the three years, a Rs 1-lakh deposit would have grown to Rs 1.21 lakh.

Axis Bank  

Axis Bank offers an interest rate of 7.10 percent on  three-year FDs, meaning Rs 1 lakh will grow to Rs 1.21 lakh on maturity.

Federal Bank 

At an interest rate of 7 percent, Rs 1 lakh in a three-year fixed deposit with the Federal Bank becomes Rs 1.21 lakh on maturity.

HDFC Bank 

HDFC Bank's interest rate of 7 percent too results in a balance of Rs 1.21 lakh at the end of the three-year FD term.

Also read | NRE fixed deposit rates: Deutsche Bank, RBL Bank top with up to 8 percent interest rates on two-year tenor

ICICI Bank 

The yield and interest offered by ICICI Bank is identical, at Rs 1.21 lakh and 7 percent.

IDFC First Bank 

IDFC First Bank also offers an interest rate of 7 percent on three-year FDs. Here too, an FD of Rs 1 lakh will grow to Rs 1.21 lakh on  maturity.

Karur Vysya Bank 

Rs 1 lakh in a three-year fixed deposit with Karur Vysya Bank becomes Rs 1.21 lakh on  maturity, at an interest of 7 percent.

Kotak Mahindra Bank 

Kotak Mahindra Bank too offers 7 percent on three-year FDs. If you were to invest Rs 1 lakh, it would have grown to Rs 1.21 lakh on maturity.

Punjab National Bank 

Punjab National Bank also offers an interest rate of 7 percent on three-year  FDs, growing a deposit of Rs 1 lakh  to Rs 1.21 lakh by maturity.

Safety net

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, guarantees investments in fixed deposits of up to Rs 5 lakh.