Even though the stock market and mutual funds are popular today, many people still prefer fixed deposits (FDs) for safe and guaranteed returns. With FDs, there is no fear of losing money or worrying about market ups and downs.
Currently, some banks are offering attractive interest rates on 3-year fixed deposits, making them a good option for risk-free investment.
Interest Rates Offered by Public Sector Banks
Public sector banks are offering decent returns on 3-year FDs. Most major government banks have similar interest rates.
State Bank of India (SBI) and Punjab National Bank (PNB) offer around 6.30% interest.
Bank of India and Bank of Baroda (BoB) offer up to 6.25% interest.
This makes public sector banks a good choice for investors who want safety with stable returns.
Interest Rates in Private Sector Banks
Private banks like HDFC and ICICI also offer competitive interest rates on 3-year FDs. Their rates usually range from 6.50% to 7.00%.
Private banks often offer slightly higher interest rates (about 0.25% to 0.50%) compared to public sector banks to attract more customers.
Returns from Major Banks on 3-Year FDs
State Bank of India (SBI)
SBI offers an interest rate of about 6.30% on 3-year FDs.
If you invest ₹1 lakh, you can earn more than ₹20,000 in interest after three years.
SBI is a strong option for those who value safety.
Punjab National Bank (PNB)
PNB also offers around 6.30% interest on 3-year FDs.
An investment of ₹1 lakh can give a return of about ₹20,000.
If you already have an account with PNB, you can easily invest in a 3-year FD.
Bank of Baroda (BoB)
Bank of Baroda offers 6.25% interest on 3-year FDs.
This is slightly lower than SBI and PNB by 0.05%.
An investment of ₹1 lakh can earn around ₹19,900 in interest.
It is a good option for those who prefer stable public sector banks.
HDFC and ICICI Bank
HDFC and ICICI Bank offer higher interest rates than most public sector banks.
Rates range from 6.50% to 7% on 3-year FDs.
At 7%, an investment of ₹1 lakh can earn over ₹21,000 in profit.
These banks are suitable for investors who want slightly higher returns.
Which Bank Should You Choose?
If safety is your top priority, SBI or PNB can be the better choice.
If you want to earn an extra ₹1,000 to ₹2,000, you can explore special FD schemes from private banks like HDFC or ICICI.
