Investing ₹1 Lakh? Check Which Bank Offers the Highest Interest on a 3-Year FD

When it comes to safe and steady investments, Fixed Deposits (FDs) remain a favorite among Indian investors. With guaranteed returns and minimal risk, they’re a go-to option for those who prefer stability over volatility. But not all FDs pay the same, interest rates differ across banks. Here’s a quick look at which banks currently offer the best 3-year FD returns.

IndusInd Bank - Tops the Chart

Leading the list, IndusInd Bank offers an attractive 6.65% interest on its 3-year FD. A ₹1 lakh investment here grows to ₹1,19,950 by maturity, making it the best option for those seeking maximum returns in this category.

Axis Bank - Close Second

Axis Bank isn’t far behind, offering 6.60% on a 3-year FD. A ₹1 lakh deposit fetches ₹1,19,800 after three years, a solid and safe bet for medium-term investors.

HDFC Bank - Trusted with Slightly Lower Returns

HDFC Bank offers a 6.40% interest rate on its 3-year FD. If you park ₹1 lakh here, you’ll get ₹1,19,200 at maturity, a fair return with the reliability of one of India’s largest private lenders.

SBI - Government-Backed Security

The State Bank of India (SBI) offers 6.30% on a 3-year FD. A ₹1 lakh investment matures to ₹1,18,900. While the returns are slightly lower, SBI’s government backing adds a layer of trust for conservative investors.

Canara Bank - Safe and Steady

Canara Bank’s 3-year FD provides 6.25% interest, yielding ₹1,18,750 on a ₹1 lakh deposit. It’s a reliable choice for those who prioritize stability with a modest return.

If higher returns are your goal, IndusInd Bank currently offers the best 3-year FD rate at 6.65%. However, investors should also consider factors like bank reputation, payout options, and personal risk comfort before locking in their funds.