FD Rates: A 3-year FD is considered a better option for those who want safe and fixed returns over a short period. Therefore, it’s important to compare interest rates from different banks so that you can choose the right bank and earn more and better returns on your investment without any risk.
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Why is FD the top choice?
Even though the stock market and mutual funds are the dominant market these days, people still rely on fixed deposits for safe and guaranteed returns. FDs offer neither the fear of losing money nor the stress of market fluctuations. Some banks are offering impressive returns on 3-year fixed deposits.
Public-owned banks dominate.
If you’re considering a safe investment with public sector banks, they’re currently offering good returns. Major public sector banks are offering similar interest rates on 3-year fixed deposits. State Bank of India and Punjab National Bank are offering a rate of 6.30%, while Bank of India and Bank of Baroda offer interest rates of up to 6.25%. This means that investing here may be the best option without significant risk.
Understand the condition of private banks also
Private banks like HDFC and ICICI also offer interest rates of around 6.50% to 7.00% for a 3-year term. However, private banks often offer slightly higher interest rates (0.25% to 0.50%) than public sector banks to attract customers.
1. State Bank of India (SBI)
The country’s largest bank, SBI, offers an interest rate of approximately 6.30% on its 3-year FD. So, if you deposit ₹1 lakh, you could earn over ₹20,000 in interest after three years. SBI is an excellent option for those who prioritize safety.
2. Punjab National Bank (PNB)
PNB is also on par with SBI in terms of interest rates. Here, too, you can earn an annual interest rate of around 6.30% on a 3-year investment. Yes, PNB will also give you a return of around ₹20,000 on an investment of ₹1 lakh. If you have an account with PNB, you can make a 3-year FD.
3. Bank of Baroda (BoB)
Bank of Baroda FDs are good for those with a long-standing relationship with the bank and who want to invest in a stable public sector bank. The interest rate on a 3-year FD is 6.25%. While this is only 0.05% lower than SBI and PNB, it will yield a return of around ₹19,900 on an investment of ₹1 lakh.
4. HDFC and ICICI Bank
Major private sector players like HDFC and ICICI Bank often offer slightly higher interest rates than public sector banks. Rates on 3-year FDs can range from around 6.50% to 7%. At 7%, an investment of ₹1 lakh could yield a profit of over ₹21,000. It’s clear that these banks are the preferred choice for those seeking higher returns.
Where should you invest?
If you want greater safety, it’s wiser to go with SBI or PNB. However, if you want to increase your profits by another ₹1,000-₹2,000, you can check out special schemes offered by private banks like HDFC or ICICI. Just remember to check the interest rates with your bank before investing.
(Note: This news is based on general information; for more details, consult a financial advisor.)
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