3-year FD: These nine banks are offering best rates

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A fixed deposit (FD) is one of the conventional ways in which an individual parks money. It is a preferred option for many Indians as it is considered to be one of the safest avenues. It offers a fixed return on a predetermined tenure.

Rate cuts

Banks offer interest rates depending on the FD tenure and the deposit amount. In recent times almost every private and public sector banks lowered interest rates on fixed deposits. This interest rate varies from bank to bank.

Top 9 banks

If you are planning to go for a three-year FD, here is a list of 9 private and PSU banks to consider.

Public sector banks

Among PSU banks, Union Bank of India (UBI) is currently offering best rates on 3-years FD’s less than Rs 2 crores.

UBI offers 5.50% interest per annum for the general public and 6% for senior citizens, whereas Canara Bank is offering 5.40% and 5.90% respectively for the same tenure.

Bank of India (BoI) is in the third position. It is offering 5.30% interest to the general public and 5.80% to senior citizens.

Punjab & Sind Bank and State Bank of India (SBI) are offering 5.15% and 5.10% respectively to general customers. Senior citizens will get 0.50% extra interest rate.

Private sector banks

Among private sector banks, IndusInd Bank and DCB Bank are offering 6.50% on three-year FDs. On the other hand, RBL Bank and Yes Bank are offering 6.10% and 6% respectively of FDs for the same tenure.

Like PSU banks, all these private sector banks are also giving 0.50% extra interest to the senior customers.