FD Interest Rates 2025: These 7 Banks Are Offering Attractive Returns on 3-Year Fixed Deposits – Check Full Details

FD Interest Rates: If you are planning to invest in a Fixed Deposit (FD) for 3 years, then you must compare the interest rates of different banks. Currently, several private and public sector banks are offering attractive interest rates on fixed deposits with a tenure of 3 years. In this article, we will discuss the 7 banks that are giving the highest returns on 3-year FDs.

Best Banks Offering High Interest Rates on 3-Year FDs

Fixed Deposits (FD) are considered one of the safest and most popular investment options in India. Investors who want guaranteed returns without any market risk often prefer Fixed Deposits over other investment instruments. However, choosing a bank that offers the highest interest rates is crucial to maximize your returns.

Currently, several banks in India, both in the private and public sector, are offering attractive FD interest rates on a 3-year tenure. Even a small difference of 50 basis points (0.5%) can significantly increase your maturity amount in 3 years. For instance, if you invest Rs 10 lakh, a bank offering 0.5% higher interest can give you an additional return of around Rs 15,000 in 3 years.

So, let’s take a look at the top 7 banks offering the best FD interest rates for a 3-year term in 2025.

✅ Top 7 Banks Offering Highest Interest Rates on 3-Year FD in 2025

Here’s a comparative table showing the interest rates offered by the top 7 banks on 3-year fixed deposits (FD) for both regular customers and senior citizens.

✅ 1. HDFC Bank FD Interest Rate

HDFC Bank, one of the largest private sector banks in India, is offering 7% interest on a 3-year fixed deposit for regular citizens. However, senior citizens will get a higher interest rate of 7.5% on the same tenure.

• Regular Customers: 7%
• Senior Citizens: 7.5%

If you are planning to invest in an HDFC Bank FD, you can expect a safe and guaranteed return along with flexible investment options.

✅ 2. ICICI Bank FD Interest Rate

ICICI Bank is also offering a competitive interest rate on its 3-year fixed deposit scheme. Regular customers can earn an interest rate of 7%, while senior citizens will get 7.5% interest.

• Regular Customers: 7%
• Senior Citizens: 7.5%

This makes ICICI Bank a suitable choice for those looking for a stable return on investment with a tenure of 3 years.

✅ 3. Kotak Mahindra Bank FD Interest Rate

Kotak Mahindra Bank offers one of the highest interest rates on 3-year fixed deposits. For regular customers, the interest rate is 7%, while senior citizens can get up to 7.6% interest.

• Regular Customers: 7%
• Senior Citizens: 7.6%

Investors looking for higher returns with safety can consider Kotak Mahindra Bank FD for a 3-year term.

✅ 4. Federal Bank FD Interest Rate

Federal Bank, a leading private sector bank, is offering an attractive 7.1% interest on 3-year fixed deposits for regular customers. However, senior citizens can get a higher interest rate of 7.6%.

• Regular Customers: 7.1%
• Senior Citizens: 7.6%

This makes Federal Bank a strong contender in offering best returns on 3-year FDs.

✅ 5. State Bank of India (SBI) FD Interest Rate

SBI (State Bank of India), the largest public sector bank in the country, is offering a 6.75% interest rate on 3-year FDs for regular customers. However, senior citizens will get a higher interest of 7.25%.

• Regular Customers: 6.75%
• Senior Citizens: 7.25%

Although the interest rate is slightly lower compared to private banks, the safety and reliability of SBI make it a popular choice.

✅ 6. Bank of Baroda FD Interest Rate

Bank of Baroda (BOB), a prominent public sector bank, offers 7.15% interest on 3-year FDs for regular customers, while senior citizens enjoy an attractive 7.65% interest rate.

• Regular Customers: 7.15%
• Senior Citizens: 7.65%

With competitive interest rates and high trust value, Bank of Baroda is one of the top choices for fixed deposit investments.

✅ 7. Union Bank of India FD Interest Rate

Union Bank of India, another leading public sector bank, is offering 6.7% interest on 3-year fixed deposits for regular customers, while senior citizens can earn up to 7.2% interest.

• Regular Customers: 6.7%
• Senior Citizens: 7.2%

Although the interest rate is slightly lower than other banks, Union Bank of India still offers stable returns with government-backed security.

✅ Why Should You Compare FD Interest Rates?

It is always advisable to compare FD interest rates offered by different banks before investing. Even a small difference of 0.5% in the interest rate can significantly impact your total returns in 3 years. For instance:

• If you invest Rs 10 lakh for 3 years:
  • 7% interest rate: ₹12,10,000 (Maturity)
  • 7.5% interest rate: ₹12,25,000 (Maturity)
  • Difference: ₹15,000 more returns in 3 years.

✅ Conclusion

Investing in a Fixed Deposit (FD) for 3 years is one of the safest and most stable investment options in India. However, to maximize your returns, it is crucial to choose a bank that offers the highest interest rates. Based on the current market trends, Kotak Mahindra Bank, Federal Bank, and Bank of Baroda are offering the highest interest rates for both regular customers and senior citizens.

Before investing, always compare the interest rates, tenure, and maturity benefits offered by different banks. Additionally, consider premature withdrawal penalties, tax implications, and auto-renewal options to make an informed investment decision.