Top 10 Banks With Highest Interest Rates On 3-Year FDs In 2021

When it comes to complete flexibility in terms of investment tenure, a term deposit scheme with a maturity period ranging from 7 days to 10 years is highly recommended to have in your debt portfolio. Interest rates on fixed deposits are higher than those on other risk-free investments like Treasury Bills and Government Bonds. A fixed deposit is a risk-free investment option since the interest rate is fixed and unaffected by market fluctuations. Because deposits up to Rs. 5 lakh are insured by the DICGC, fixed deposits are a secure investment option compared to other risk-bearing alternatives.

Our take

In its most recent monetary policy review, the Reserve Bank of India (RBI) predicted retail inflation at 5.3 percent for the current fiscal year. This effectively suggests that once inflation gets back to normal, the RBI may seek to lower interest rates to stimulate economic growth. Interest rates are projected to continue low as central banks seek to revive the economy decimated by the epidemic through monetary policy actions.

With a further reduction in repo rates, banks may drop their interest rates even further, and both inflation and interest rates are expected to decline over time, therefore we recommend that our readers invest in short-term fixed deposits or, to avoid this problem, they can break their investment into separate amounts and invest it for different tenors. And while we are on the subject of short-term fixed deposits, here are the country's top 5 banks based on our research that are currently offering the highest interest rates on three-year fixed deposits of less than Rs 2 Cr.

Top 10 Public Sector Banks Promising Highest Interest Rates On 3 year FDs In 2021

Based on our research, here are the top 10 public sector banks that are currently providing the highest interest rates on 3 year fixed deposits in the country.

Banks	Regular	Senior Citizens	W.e.f.
Union Bank of India	5.30%	5.80%	01/09/2021
State Bank of India	5.30%	5.80%	08.01.2021
Indian Overseas Bank	5.20%	5.70%	09.11.2020
Punjab & Sind Bank	5.15%	5.65%	16/09/2021
Punjab National Bank	5.10%	5.60%	01.08.2021
Indian Bank	5.10%	5.60%	05.11.2021.
Canara Bank	5.10%	5.60%	09.08.2021
Bank of Baroda	5.10%	5.60%	16.11.2020
Bank of India	5.05%	5.55%	01.08.2021
UCO Bank	5.00%	5.50%	16.11.2021
Source: Bank Websites

Top 10 Private Sector Banks Offering Highest Interest Rates On 3 year FDs In 2021

According to our findings, the below listed are the top ten private sector banks in the country offering the highest interest rates on three-year fixed deposits.

Banks	Regular	Senior Citizens	W.e.f.
Yes Bank	6.00%	6.50%	3rd November 2021
RBL Bank	6.00%	6.50%	1st September 2021
IndusInd Bank	6.00%	6.50%	July 23rd, 2021
DCB Bank	5.95%	6.45%	22nd November 2021
IDFC First Bank	5.75%	6.25%	November 23, 2021
Bandhan Bank	5.50%	6.25%	June 7, 2021
Axis Bank	5.40%	6.05%	10/11/2021
Karnataka Bank	5.40%	5.80%	01st November 2021
Tamilnad Mercantile Bank	5.35%	5.85%	18.11.2021
Federal Bank	5.35%	5.85%	17-11-2021
Source: Bank Websites

Top 10 Small Finance Banks Providing Highest Interest Rates On 3 year FDs In 2021

According to our analysis, here are the top 10 small finance banks in the country which are now offering the highest interest rates on three-year fixed deposits.

Banks	Regular	Senior Citizens	W.e.f.
Suryoday Small Finance Bank	7.00%	7.30%	September 09, 2021
Ujjivan Small Finance Bank	6.50%	7.00%	16th August 2021
Jana Small Finance Bank	6.50%	7.00%	07/05/2021
North East Small Finance Bank	6.50%	7.00%	19th April 2021
Fincare Small Finance Bank	6.25%	6.75%	25th October 2021
Equitas Small Finance Bank	6.00%	6.50%	01st Oct 2021
AU Small Finance Bank	6.00%	6.75%	14th October 2021
Capital Small Finance Bank	6.00%	6.50%	June 03, 2021
Utkarsh Small Finance Bank	6.00%	6.50%	July 01, 2021
ESAF Small Finance Bank	5.75%	6.25%	01/08/2021
Source: Bank Websites