FD interest rates: These 7 banks offer highest rates on long-term deposits

FD interest rates: Before opening a term deposit, it is recommended that investors compare the interest rates offered by different banks and then choose the one that offers the highest interest on their deposits.

Notably, banks generally offer higher interest on long-term deposits. A fixed deposit (FD) for three years is likely to offer a higher interest rate in comparison to a one-year FD. Therefore, we list out the interest rates offered by the most prominent lenders on their long-term deposits, i.e., for three years.

FD interest rates offered by banks

HDFC Bank: This private bank offers 6.45% interest on a three-year deposit. whereas it offers 6.25% on a one-year deposit and 6.45% on a two-year deposit. These rates came into force on 25 June 2025. Senior citizens are entitled to receive an extra 50 basis points.

ICICI Bank: This private lender offers 6.6% interest on its three-year fixed deposit to general depositors and 7.1% interest to senior depositors. On one-year and two-year deposits, investors are entitled to earn 6.25% and 6.4% interest, respectively.

Kotak Mahindra Bank: It offers 6.4% interest on three-year fixed deposits to general citizens, and 6.90% interest to senior citizens. For one-year and two-year deposits, Kotak Mahindra Bank offers interest rates of 6.25% and 6.4%, respectively. These rates came into force on 20 August.

Federal Bank: It offers 6.4%, 6.5% and 6.5% on FDs of one-year, two-year and three-year tenures as per the interest rates which came into force on 18 August 2025.

State Bank of India (SBI): The largest lender in India offers 6.3% interest on three-year FD to regular citizens and 6.8% to senior citizens. These rates came into force on 15 July 2025. On one-year and two-year FDs, investors are entitled to earn 6.25% and 6.45% interest per annum.

Bank of Baroda: This state lender offers 6.50% interest on three-year fixed deposits to regular citizens and 7% to senior citizens. At the same time, it offers 6.25% and 6.5% on one-year and two-year deposits to regular citizens. These rates came into force on 12 September.

Union Bank of India: This state lender offers 6.6% interest on three-year term deposits to regular citizens and 7.1% to senior citizens. For one-year and two-year deposits, this bank offers 6.4% and 6.5%, respectively. These rates came into force on 20 August 2025.

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