Highest FD Rates 2025: If you’re aiming to increase your savings securely with guaranteed returns over time, fixed deposits (FDs) are still among the most dependable investment choices. However, it’s important to note that not all banks provide the same interest rates. At present, some banks are offering appealing interest rates of up to 7.65% on 3-year FDs. Thus, before making an investment, it’s crucial to identify which bank’s FD scheme could be the most advantageous for you.

For those investors seeking improved and consistent returns through 3-year FDs, here’s a compilation of FD interest rates from government, private, and small finance banks that can assist in making an informed investment choice.

Where can you find the highest interest on a 3-year FD?
government banks
Bank Name – Interest Rate (%) per annum

Punjab & Sind Bank – 6.00

Bank of Maharashtra – 6.20

Indian Overseas Bank – 6.20

Bank of India – 6.25

State Bank of India – 6.30

Canara Bank – 6.25

Central Bank of India – 6.25

Indian Bank – 6.25

Punjab National Bank – 6.40

Bank of Baroda – 6.50

Union Bank of India – 6.60

Currently, the interest rates on 3-year fixed deposits (FDs) from public sector banks vary from 6% to 6.60%. While public sector banks may offer relatively lower rates, they continue to be the preferred option for many investors due to their reliability, stability, and capital protection.

Also read: SIP strategy: How much should you invest and in which scheme?

private banks
Bank Name – Interest Rate (%) per annum

CSB Bank – 5.75

Karnataka Bank – 6.15

South Indian Bank – 6.20

DBS Bank – 6.40

Kotak Mahindra Bank – 6.40

HDFC Bank – 6.45

Federal Bank – 6.50

Karur Vysya Bank – 6.55

Axis Bank – 6.60

ICICI Bank – 6.60

Tamilnad Mercantile Bank – 6.60

City Union Bank – 6.65

Jammu & Kashmir Bank – 6.65

IDFC FIRST Bank – 6.75

IndusInd Bank – 6.90

Yes Bank – 7.00

Bandhan Bank – 7.00

DCB Bank – 7.00

SBM Bank India – 7.10

RBL Bank – 7.20

Small finance banks are currently offering the highest returns on 3-year FDs. Utkarsh Small Finance Bank offers the highest interest rate of 7.65% on a 3-year fixed deposit (FD). Slice Small Finance Bank and Jana Small Finance Bank offer 7.50% interest on 3-year FDs. Suryoday Small Finance Bank offers a 7.25% interest rate on a 3-year FD, while AU Small Finance Bank offers 7.10% interest on an FD of the same term. However, before investing, ensure that the bank is covered under DICGC insurance and meets all its requirements. The limit for this insurance is up to Rs 5 lakh.