Highest Interest Rates on 3 Year FD:For those holding fixed deposits (FD), this is the right time to lock in higher interest rates. Many banks have offered interest rates ranging from 7% to 9% for a period of three years. Of these, Northeast Small Finance Bank is offering the highest rate of 9%, followed by Suryoday Small Finance Bank at 8.6% and Utkarsh Small Finance Bank at 8.5%.
In the private sector, DCB Bank leads with 7.55%, followed by RBL Bank at 7.5% and SBM Bank India at 7.3%. In the public sector, Bank of Baroda is offering 7.15%, while Punjab National Bank is close to it at 7%.Here three year fixed deposit interest rates are given for government, private, small finance banks.
bank name | Interest rate on 3 year FD |
Small Finance Bank | |
AU Small Finance Bank | 7.50 |
Equitas Small Finance Bank | 8.00 |
ESAF Small Finance Bank | 6.75 |
Jana Small Finance Bank | 8.25 |
NorthEast Small Finance Bank | 9.00 |
Suryoday Small Finance Bank | 8.60 |
Ujjivan Small Finance Bank | 7.20 |
Unity Small Finance Bank | 8.15 |
Utkarsh Small Finance Bank | 8.50 |
private bank | |
Axis Bank | 7.10 |
Bandhan Bank | 7.25 |
City Union Bank | 6.50 |
CSB Bank | 5.75 |
DBS Bank | 6.50 |
DCB Bank | 7.55 |
Federal Bank | 7.00 |
HDFC Bank | 7.00 |
ICICI Bank | 7.00 |
IDFC First Bank | 6.80 |
IndusInd Bank | 7.25 |
Jammu & Kashmir Bank | 6.75 |
Karur Vysya Bank | 7.00 |
Karnataka Bank | 6.50 |
Kotak Mahindra Bank | 7.00 |
RBL Bank | 7.50 |
SBM Bank India | 7.30 |
South Indian Bank | 6.70 |
Tamilnad Mercantile Bank | 6.50 |
Yes Bank | 7.25 |
government bank | |
Bank of Baroda | 7.15 |
Bank of India | 6.50 |
Bank of Maharashtra | 6.50 |
Canara Bank | 6.80 |
Central Bank of India | 6.75 |
Indian Bank | 6.25 |
Indian Overseas Bank | 6.50 |
Punjab National Bank | 7.00 |
Punjab & Sind Bank | 6.00 |
State Bank of India | 6.75 |
Union Bank of India | 6.70 |
Source:Paisabazaar.com | |
Interest rates as of 16th October 2024 |
Why is it the right time to get FD?
Two years ago, the Reserve Bank of India (RBI) started increasing the repo rate as per global trends where central banks were raising rates to control inflation. This month, on October 9, after the review meeting of its Monetary Policy Committee, RBI decided to keep the repo rate stable at 6.5% for the tenth consecutive time. Due to high repo rates for a long time, better returns are being received on fixed deposits. However, high returns on fixed deposits are likely not to last long in the coming months. Actually banks have offered competitive rates due to high repo rates, but as inflation stabilizes and RBI considers cutting rates, these FD rates may start falling. So now is the right time to lock in high fixed deposit rates and secure your returns.
How is tax charged on FD returns?
Tax on fixed deposits is based on the interest that the investor has earned and not on the principal amount. The interest is added to the total earnings of the investor and tax rules are applicable on people according to the income tax slab. If the interest exceeds Rs 50,000 for senior citizens (Rs 40,000 for others), the bank deducts 10% TDS. In case of non-submission of PAN card, banks deduct 20% TDS. For example, Rohan, a resident of Delhi for 40 years, has an annual income of Rs 75,000 from fixed deposit (FD) interest.
- Total interest earned: Rs 75,000
- TDS limit: Rs 40,000 for general citizens
- TDS deducted by the bank: 10% of Rs 75,000 = Rs 7,500
Rohan’s total interest of Rs 75,000 will be added to his taxable income and tax rules will be applicable as per his slab. If Rohan’s total income is less than Rs 2.5 lakh, then he will not have to pay any separate tax. To avoid TDS deduction, he can submit Form 15G at the beginning of the financial year, in which he declares his earnings below the taxable limit, so that the bank will not deduct TDS in advance.