• Best FD Rates For 3 Years 2021

    Many banks are offering good interest rates on 3-year fixed deposits. In fact, in many cases, the interest earned on 3-year deposits are much higher when compared to 1-year or 2-year tenures. In this page, readers can get information about the best fixed deposits for 3 years in the market.

    Best 2021 FD Interest Rates for Below Rs.2 Crore for 3-Year Tenure

    Given below are 10 of the best fixed deposit schemes below Rs.2 crore with a 3-year tenure - Last Updated on 29 Sep 2021

    Top 10 3-year FDs for 2021
    Bank/Company Regular Interest Rate(per annum) Senior Citizen Interest Rate(per annum)
    Fincare Small Finance Bank 6.30% 6.80%
    KTDFC 6.00% 6.25%
    Shriram City 8.84% 9.24%
    Mahindra Finance 6.30% 6.55%
    Sundaram Finance 6.25% 6.75%
    Lakshmi Vilas Bank (LVB) 4.75% 5.25%
    ICICI Home Finance 5.55% 5.80%
    Yes Bank (Special Rates) 6.50% 7.00%
    ICICI Bank 5.15% 5.65%
    Punjab and Sind Bank 5.30% 5.80%

    The Interest rates are subject to change and are revised by the banks and financial institutions from time to time

    3-year Fixed Deposit key highlights

    • Shriram City pays the highest interest rate of 9.13% p.a. for the 3-year FD opened by the general public.
    • When 3-year term deposits are opened by senior citizens, Shriram City pays the highest interest rate of 9.53% p.a.

    List of 10 best FD schemes for 3 years

    1. Fincare Small Finance Bank

    • Fincare offers attractive rates of interest on the 3-year tenure
    • They offer 6.30% p.a. to the general public and 6.80% p.a. for those above 60 years
    • A number of flexible interest payout options and premature withdrawal is provided by the bank

    2. KTDFC

    • A lucrative rate of 6.00% p.a. is paid for term deposits opened for a period of 3 years
    • For senior citizens, the interest rate offered is 6.25% p.a.
    • TDS is applicable on all FD schemes
    • They offer Periodic Interest Payment Schemes (PIPS) and Money Multiplier Schemes (MMS)

    3. Shriram City

    • The rate of interest offered for cumulative deposits for 3 years is 8.84% p.a
    • The rate of interest offered to senior citizens is 9.24% p.a. for the same
    • They also offer non-cumulative term deposits for which the 3-year tenure interest rate is 8.15% p.a. for the general public and 8.55% p.a. for senior citizens

    4. Mahindra Finance

    • The best FD rate is offered for the Samruddhi Cumulative Deposit scheme, where the rate of interest is 6.30% p.a. with regard to general citizens
    • For senior citizens, the interest rate offered is 0.25% higher for Samruddhi Cumulative Deposit Scheme
    • The interest on these deposits are compounded on an annual basis
    • Various interest payout options available

    5. Sundaram Finance

    • Promising FD schemes with attractive interest rates and other benefits
    • An interest rate of 6.25% p.a. is offered to the general public who open a 3-year term deposit with the company
    • Senior citizens are provided an interest of 6.75% p.a.
    • Premature withdrawal and nomination facility available

    6. LVB

    • The bank offers a deposit interest rate of 4.75% p.a. to the general public for opening a term deposit having an investment period of 3 years
    • An interest rate of 5.25% p.a. is offered to senior citizens
    • 1% penalty fee applicable in case of premature withdrawal
    • Penalty not applicable for deposits above Rs.1 crore

    7. ICICI Home Finance

    • Competitive interest rate of 5.55% p.a. is offered to the general public for a 3-year investment tenure under the cumulative plan
    • For those above 60 years, interest of 5.80% p.a. is provided for the same
    • Non-cumulative fixed deposits are also offered

    8. Yes Bank

    • YES Bank offers customers a special rate of 6.50% p.a. for general citizens
    • Senior citizens are paid at the rate of 7.00% p.a.
    • Reinvestment is available for a minimum tenure of 6 months 1 day

    9. ICICI Bank

    • The annual percentage rate paid by ICICI Bank on FDs opened for a period of 3 years is 5.15% p.a.
    • Senior citizens are paid an interest of 5.65% p.a.

    10. Punjab and Sind Bank

    • The rate of interest paid on Punjab and Sind Bank FDs for a 3-year tenure is 5.30% p.a.
    • Individuals who fall in the senior citizen bracket can earn an interest rate of 5.80% p.a.

    Frequently Asked Questions (FAQs)

    1. When will my FD interest amount get credited into my account?

      This will depend on the interest payout that you have decided at the time of booking the FD. It can be on a monthly, quarterly, or annual basis in which case it will be credited into your savings account. If you have chosen the reinvestment option, then the interest gets compounded over time, being added to the principal amount, and will be credited into your savings account only when the FD matures.

    2. Will I get the same interest amount if I prematurely withdraw my FD?

      Most banks levy a penalty ranging from 1% to 2% on the rate of interest if you prematurely close your FD.

    3. Should I pay TDS on the interest earned on my fixed deposits?

      You have to pay 10% Tax Deducted at Source (TDS) only if the interest amount on your FD for a financial year is more than Rs.10,000 (for AY 2019-20) or more than Rs. 40,000 (for AY 2020-21). If you do not provide a PAN card when booking your FD, then there is a fixed TDS of 20%.

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