Looking for High FD Returns? These 8 Banks Offer the Best Long-Term Rates
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With fixed deposit (FD) interest rates expected to decline in the near future, now may be a smart time to lock in your investment. Over the last three monetary policy meetings, the Reserve Bank of India (RBI) slashed the repo rate by a total of 100 basis points. Although the latest policy held rates steady, experts believe we are now entering a softer interest rate cycle.
This makes it all the more important for investors-especially risk-averse ones-to compare FD rates across banks before investing. For senior citizens, the good news is that most banks offer an additional 50 basis points over standard rates.
To help you make an informed decision, here’s a look at the interest rates offered by eight leading banks in India for three-year fixed deposits, as of August 2025.
Detailed Bank-Wise Breakdown
Key Takeaways
With the RBI likely to continue a dovish stance in the coming months, locking your funds in a 3-year FD at current rates could help you maximise returns before interest rates drop further. Whether you’re a conservative investor or a retiree seeking steady income, these options give you a good balance between safety and returns.
This makes it all the more important for investors-especially risk-averse ones-to compare FD rates across banks before investing. For senior citizens, the good news is that most banks offer an additional 50 basis points over standard rates.
To help you make an informed decision, here’s a look at the interest rates offered by eight leading banks in India for three-year fixed deposits, as of August 2025.
FD Rates for 3-Year Term Deposits: Regular vs Senior Citizens
Detailed Bank-Wise Breakdown
- ICICI Bank offers one of the most attractive rates-6.60% for regular depositors and 7.10% for senior citizens-on 3-year FDs.
- Federal Bank, effective from July 17, also matches ICICI’s rates, making it a solid option for both categories of investors.
- Union Bank of India, with revised rates effective from July 7, is another strong contender, offering 6.60% (regular) and 7.10% (senior citizens).
- HDFC Bank, India’s largest private lender, is offering 6.45% for regular investors and 6.95% for senior citizens.
- Bank of Baroda provides 6.50% for regular customers and 7.00% for seniors-among the best rates in the public sector.
- Kotak Mahindra Bank revised its rates on June 18 to 6.40% and 6.90% for regular and senior citizens, respectively.
- Punjab National Bank (PNB) offers the same rates as Kotak, making it another viable choice in the public sector.
- SBI, the country’s largest public sector bank, currently provides 6.30% to regular customers and 6.80% to senior citizens. These rates came into effect on July 15.
Key Takeaways
- The highest interest rate of 7.10% for senior citizens is being offered by ICICI Bank, Federal Bank, and Union Bank of India.
- Regular investors looking for the best returns can choose between ICICI, Federal, and Union Bank, all offering 6.60%.
- Public sector banks like SBI, BOB, and PNB may offer slightly lower rates but are often preferred for trust and long-term stability.
With the RBI likely to continue a dovish stance in the coming months, locking your funds in a 3-year FD at current rates could help you maximise returns before interest rates drop further. Whether you’re a conservative investor or a retiree seeking steady income, these options give you a good balance between safety and returns.
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