FD Update: Which bank is earning the most on 3-year FDs? Here is the list..

Conservative investors often consider fixed deposits (FDs) as a safe and guaranteed investment. However, before investing your hard-earned money in fixed deposits, it's important to know which bank offers the highest returns on its FDs. Generally, FD interest rates across banks don't vary significantly and remain within a narrow range. However, even a small difference of 50 basis points can significantly boost your investment, especially when the investment amount is substantial and the tenure is long.

Let's illustrate this with an example. If three FDs offer 0.50% higher interest rates than one bank, an investor would earn ₹15,000 more on an FD of ₹10 lakh. If the same FD is worth ₹20 lakh, the savings would reach ₹30,000. Let's explore the returns offered by the country's top commercial banks on fixed deposits…

These 7 banks offer the highest returns on FDs.

HDFC Bank: This bank offers 6.45% interest rates for general citizens and 6.95% for senior citizens on three-year deposits. It also offers the highest interest rates for 18-21 month deposits.

ICICI Bank: This private sector bank offers 6.6% interest rates for general citizens and 7.2% for senior citizens on its three-year FDs.

Kotak Mahindra Bank: This bank offers 6.4% and 6.9% interest rates for general and senior citizens on three-year deposits. However, for tenors ranging from 391 days to less than two years, it offers the highest interest rates of 6.7% and 7.2%.

Federal Bank: This private sector bank offers 6.7% interest rates for general citizens and 7.2% for senior citizens on three-year deposits. These are the highest interest rates offered by the bank.

State Bank of India (SBI): India's largest bank offers 6.3% interest on its three-year FDs for regular citizens and 6.8% for senior citizens. The highest interest rates (6.45% and 6.95%) are offered for two- to three-year tenures.

Canara Bank: This government lender offers 6.25% interest on its three-year deposits for regular citizens and 6.75% for senior citizens. However, the highest interest rates (6.5% and 7%) are offered for 444-day tenures.

Union Bank of India: This government lender offers 6.6% interest on its three-year FDs for regular citizens and 7.1% interest on its senior citizens.

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