If you are looking for high returns on a 3-year fixed deposit (FD), small finance banks are currently leading the way.
Among them, Utkarsh Small Finance Bank offers the highest interest rate of 7.65%, making it a top choice for investors seeking safe and profitable returns.
Here’s a quick look at 10 banks offering impressive 3-year FD rates:
Best FD Rates to Consider
Utkarsh Small Finance Bank – 7.65% interest. Highest return currently, ideal for safety and growth.
Jana Small Finance Bank – 7.50% interest. A stable option for small investors.
Slice Small Finance Bank – 7.50% interest. Digital-first bank gaining popularity.
Suryoday Small Finance Bank – 7.25% interest. Offers schemes for regular and senior citizens.
Ujjivan Small Finance Bank – 7.20% interest. Focuses on digital deposits and inclusion.
RBL Bank – 7.20% interest. A private sector bank with safe and stable returns.
AU Small Finance Bank – 7.10% interest. Known for a strong digital platform and service.
Bandhan Bank – 7.00% interest. Popular for its nationwide network and reliability.
Equitas Small Finance Bank – 7.00% interest (+0.50% extra for senior citizens).
Shivalik Small Finance Bank – 7.00% interest. Popular in North India.
Why Small Finance Banks Are Attractive
Small finance banks currently offer higher FD interest rates than larger banks.
This makes them a great option if you want safe, stable, and profitable returns over 3 years.
Safety: All small finance banks are regulated by the RBI. Deposits up to ₹5 lakh are insured under DICGC.
Senior Citizen Benefits: Many banks provide extra interest of 0.25% to 0.75%.
Digital Convenience: Most banks allow you to open FDs online via apps or websites.
Premature Withdrawal: Available, though a small penalty may apply.
Taxation: FD interest is taxable, and TDS may be deducted.
Conclusion
For a 3-year fixed deposit, Utkarsh Small Finance Bank is the best choice with 7.65% interest.
Other options like Jana and Slice Small Finance Bank also offer attractive returns.
Investing in small finance bank FDs can be more profitable than traditional large banks, making them a smart choice for safe, long-term savings.
