Best FD Rates For 3 Years 2025

FAQs on 3 Year Tenure FD Rates

• 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.

• 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.

• 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%.

• How will the amount due on my FD mature?

  The FD maturity amount will be directly credited to the associated bank account for current customers. The funds can be received in cash (up to a specific amount), by pay order, demand draft, or electronic means such as NEFT or RTGS if the recipient does not have their bank account(s) with the same bank. 

• What are the senior citizen fixed deposit interest rates?

  Senior citizens typically receive advantageous FD rates (e.g., 0.50% more) from most banks. Preferential interest rates are given to banks such as Axis Bank in varying amounts for a specific amount of time. 

• Is opening a fixed deposit at a small financial bank safe?

  Indeed. The Reserve Bank of India regulates small finance banks. Moreover, DICGC offers deposit insurance on these fixed deposits up to Rs. 5 lakh.  

• NRE fixed deposit: what is it? 

  Non-Resident External Fixed Deposit is the complete name for NRE Fixed Deposit. NRIs, or non-resident Indians, are eligible for this fixed deposit. Their international profits might be deposited into an Indian account. In India, interest received on NRE FDs is not subject to taxation. Since the account is kept in Indian rupees, any deposits are translated using the most recent foreign exchange rates. 

• What makes NRO FD and NRE FD different from one another? 

  The Non-Resident External (NRE) Fixed Deposit allows non-resident Indians to send their outside earnings to an Indian account. NRIs can manage their money produced in India with an NRO Fixed Deposit (Non-Resident Ordinary). 

• Does taking money out of a fixed deposit too soon hurt my earnings?

  Indeed. If you close your account too soon, you could be penalised up to 1%. This 1% penalty is applied to the effective interest rate, which lowers your take-home pay.

• Are fixed deposit accounts accessible to minors?

  When applying for a fixed deposit, minors can do so through a parent or guardian as a co-applicant at many banks and non-bank financial centres. When a minor (those over ten years old) opens a Post Office Fixed Deposit or Post Office Time Deposit, a legal guardian can manage the account until the minor turns eighteen. 

• Is it possible for me to get interest or monthly income from my FD account? 

  Indeed. Simply select the monthly interest payment option when starting the account, instead of the quarterly, half-yearly, or annual alternatives.