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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