Fixed deposit interest rates: Know what banks offer on three-year FDs

Current FD rates: As the Reserve Bank of India ( RBI ) approaches its December monetary policy committee (MPC) meeting—having maintained the benchmark interest rate for ten consecutive sessions—speculation mounts that a repo rate cut is imminent. Experts recommend that savers take advantage of the current fixed deposit (FD) rates while they last.

Once the cycle of rate cuts begins, banks are likely to lower interest rates on loans and fixed deposits alike.

Here are the interest rates offered by private sector banks, public sector banks, and small finance banks on three-year fixed deposits.

Private sector banks lead the pack

Private sector banks are currently offering competitive interest rates on fixed deposits. DCB Bank leads with an interest rate of 7.55 per cent, followed by IndusInd Bank and RBL Bank at 7.25 per cent and 7.5 per cent, respectively. Bandhan Bank also offers a rate of 7.25 per cent, while HDFC Bank , ICICI Bank , and Kotak Mahindra Bank each provide rates of 7 per cent, according to bank websites.

Public sector banks remain competitive

Public sector banks are also responding to the competitive landscape. Bank of Baroda leads with a rate of 7.15 per cent, while State Bank of India and Punjab National Bank offer 6.75 per cent and 7 per cent, respectively. Although slightly lower than some private competitors, these rates still represent a strong option for conservative investors.

Small finance banks offer attractive alternatives

Small finance banks are making waves with even higher rates. Equitas Small Finance Bank and Jana Small Finance Bank are leading the charge, offering rates of 8 per cent and 8.25 per cent, respectively. These banks are catering to risk-tolerant investors looking for higher yields on their savings.

Corporate fixed deposits stand out

In addition to traditional bank FDs, corporate fixed deposits provide competitive returns. Mahindra Finance leads with an 8.1 per cent interest rate, while ICICI Home Finance and LIC Housing Finance both offer 7.75 per cent. These options can appeal to those seeking higher returns in exchange for slightly increased risk.