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Which bank is earning the most on 3-year FDs? Here is the list

Generally, FD interest rates across banks don't vary significantly and remain within a narrow range. However, even a small difference of 50 basis points can significantly boost your investment, especially when the investment amount is substantial and the tenure is long. Let us tell you how much the country's top lenders are earning on 3-year FDs.

By Kerala Tak Nov 23, 2025, 10:08 IST

Conservative investors often consider fixed deposits (FDs) as a safe and guaranteed investment option. However, before investing your hard-earned money in fixed deposits, it's important to know which bank offers the highest returns on its FDs. 

Generally, FD interest rates across banks don't vary significantly and remain within a narrow range. However, even a small difference of 50 basis points can significantly boost your investment, especially when the investment amount is substantial and the tenure is long.

Let's try to understand this with an example. If three FDs offer 0.50% higher interest rates than those offered by a bank, an investor would earn ₹15,000 more on an FD of ₹10 lakh. 

If the same FD is for ₹20 lakh, the savings would reach ₹30,000. Let us also tell you how much return the country's top commercial banks are offering on fixed deposits…

These 7 banks are earning the most on FDs

  1. HDFC Bank: This bank offers 6.45% interest rates for general citizens and 6.95% for senior citizens on deposits with a three-year term. It also offers the highest interest rates for 18- to 21-month terms.
  2. ICICI Bank: This private sector bank offers an interest rate of 6.6 per cent to general citizens and 7.2 per cent to senior citizens on its FDs with a tenure of three years.
  3. Kotak Mahindra Bank: This bank offers interest rates of 6.4% and 6.9% for general and senior citizens on three-year terms. However, for terms ranging from 391 days to less than two years, it offers the highest interest rates at 6.7% and 7.2%, respectively.
  4. Federal Bank: This private sector bank offers 6.7% interest rates for general citizens and 7.2% for senior citizens on three-year deposits. These are the highest interest rates offered by the bank.
  5. State Bank of India (SBI): India's largest bank offers 6.3% interest on its three-year fixed deposits for regular citizens and 6.8% for senior citizens. The highest interest rates (6.45% and 6.95%) are offered for deposits with a two- to three-year term.
  6. Canara Bank: This government lender offers 6.25% interest on its three-year deposits for regular citizens and 6.75% for senior citizens. However, the highest interest rates (6.5% and 7%) are offered for 444-day tenures.
  7. Union Bank of India: This government lender offers 6.6 per cent interest to regular citizens and 7.1 per cent to senior citizens on its three-year FDs.