Banks Offering High Interest Rate Of Nearly 8% On 3 Year FDs

Several small finance banks, foreign banks and private banks are offering interest rate of upto 8% on a fixed deposit (FD) for a term of 3 years. The rise in fixed deposit rate as preferred investment option is on the rise for short term.

Fixed deposits offer better liquidity and assured interest income at regular intervals and is useful for building an emergency corpus. Besides, the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in fixed deposits of up to Rs 5 lakh, thus making investment in an FD almost risk free.

The Reserve Bank of India hiked the repo rate consecutively, it made the cumulative rate hike of 250 basis points (one basis point is one-hundredth of a percentage point) in this financial year to tame the rising inflation. After the rate hike, most banks increased its interest rates on fixed deposits for various time periods. But it is seen that most small finance banks, a foreign bank and few private banks have offered the highest interest rates for FDs with a three-year tenure.

Here are the top banks offering the best interest rates on FDs for a tenure of three years.

AU Small Finance Bank offers 8% interest on Fds,for a tenure of 3 years. It offers the best interest rate among small finance banks.

IDFC First Bank, IndusInd Bank and Equitas Small Finance Bank offers a 7.75% interest on FDs with three-year tenure.

Among the foreign banks, Deutsche bank offers the best interest rates of 7.75% for a three year FD. DCB offers second best rate of interest of 7.6% on a 3 year FD.

Among public sector banks, Union Bank of India offers the highest interest rate of 7.30 percent interest rate followed by a 7.25% interest offered by Bandhan Bank, City Union Bank and Suryoday on FDs with three-year tenure.