Best 5 Fixed Deposit Schemes for 3 years

Fixed Deposit (FD) is an investment option offered by banks/NBFCs to encourage people to deposit money for a certain period and earn competitive rates. Compared to a regular savings account, an FD offers higher interest rates. Typically, FDs mature between 7 days and 120 months, offering varying interest rates that differ from bank to bank and may change over time.
Investors have the option to withdraw their deposit before maturity, though this might incur penalties, varying across institutions. Additionally, investors can use the FD as collateral to secure loans like home loans, loans against property, or personal loans, enabling them to access liquidity while maintaining their FD investment.

• Interest Rate: The interest rate offered by banks differs from bank to bank. Generally, short-term FD gives a lower rate of interest than long-term or mid-term FD.
• Premature Withdrawal: In case of a financial emergency premature withdrawal facility is available to the investors. It generally incurs a penalty and the interest rate payable also gets revised. 
•  Loan against FD: If the investor doesn't want to break the FD they can also take a loan against FD keeping FD as collateral. 
• Minimum Deposit: Most banks/financial institutions set a minimum deposit amount required to open a 3-year FD. This amount varies from bank to bank. 
• Safety and Insurance: FDs are considered the safest investment option because they are backed by Deposit Insurance and Credit Guarantee Corporation (DICGC). It provides insurance up to ₹ 5,00,000/- per depositor per bank.
• Tax Implications: The interest earned on FD are subject to tax as per your slab rate and in case the investment is in tax-saver FD then the investor can claim the deduction under section 80C of the Income-tax Act, 1961.

Shriram Finance 

• Introduction: Shriram Finance Limited holds a reputable position in the NBFC sector, particularly known for its extensive rural reach. With a robust presence, it serves around 7.71 Million customers, both private individuals and corporate entities, all over India (as of September 30, 2023). Offering a diverse range of financial products, Shriram caters to various needs, including Fixed Deposits, Fixed Investment Plans, Commercial and Passenger Vehicle Loans, Construction and Farm Equipment Loans, Two-Wheeler Loans, Gold Loans, MSME Finance, and Personal Loans.
• Feature: Shriram Finance FD is the safest investment option with an attractive interest rate. They provide special rates for senior citizens and women. Flexible interest payout options are available. The FDs of Shriram Finance are backed by credit rating agencies of India and hence are safe to invest with.  
• Interest Rate: The interest rate for the no-senior citizen is 8.30% and for senior citizens is 8.80%
• Minimum and Maximum Deposit: The minimum deposit amount is ₹5000/-

Fincare Small Finance Bank

• Introduction: Fincare Small Finance Bank started its banking operations on July 21, 2017. Before getting the Banking licence from the RBI in May 2017, it was a Microfinance company called Disha Microfin. Fincare Small Finance Bank operates and conducts its services under Section 22 (1) of the Banking Regulation Act of 1949. On March 31, 2022, the Bank served over 32 lakh customers in 17 states and union territories. The bank works on the ‘Rurban’ viewpoint enabling it to be the new generation retail bank focussing on trust, technology and transparency. 
• Feature: Senior citizens get an additional 0.5% interest over regular citizens. They have liberal payouts on a monthly and quarterly basis. Premature closure or withdrawal is available. It can be opened in both offline and online modes and can be renewed automatically at the time of its maturity. 
• Interest Rate: The interest rate for the no-senior citizen is 7.75% and for senior citizens is 8.25%.
• Minimum and Maximum Deposit: The minimum deposit amount is ₹ 5,000/-. 

Sundaram Finance 

• Introduction: Sundaram Finance is a prominent member of the TSF group and was established in 1954. It started with the objective of financing the purchase of commercial vehicles, and today has grown into one of the most trusted financial services groups in India. 
• Feature: The deposits of Sundaram Finance have been AAA-rated for the past so many years. The company provides the facility of loan against FD, nomination facility and premature withdrawal subject to rules and penalty. 
• Interest Rate: The interest rate for the no-senior citizen is 7.75% and for senior citizens is 8.25%.
• Minimum and Maximum Deposit: The minimum deposit of the FD is ₹10,000/- and there is no specific mention of the maximum deposit. 

DCB Bank

• Introduction: DCB Bank, a modern private sector bank, boasts 439 branches throughout India, regulated by the Reserve Bank of India. With a customer base exceeding a million, it operates in various segments, including Retail, micro-SME, and Agriculture. The bank, backed by contemporary technology, offers Internet banking and caters to diverse sectors like Government, Co-operative Banks, and NBFCs. Established in the 1930s, it's supported by the Aga Khan Fund for Economic Development (AKFED) promoting entrepreneurial ventures worldwide.
• Feature: The bank provides an attractive interest rate with higher interest rates for senior citizens. There is a flexible interest payment option. The tenure of FD ranges from 7 days to 10 years. Auto renewal facility with the facility of loan against FD and overdraft against FD is also available. 
• Interest Rate: The interest rate for non-senior citizens is 7.60% and for senior citizens is 8.10%.
• Minimum and Maximum Deposit: The minimum deposit is ₹ 10,000/- and there is no maximum limit.

Kerala Transport Development Finance Corporation Ltd (KTDFC)

• Introduction: KTDFC, formed under the Companies Act on Feb 27, 1991, began commercial operations on Mar 16, 1992. As a Non-Banking Financial Company registered under RBI’s Non Deposit-Systemically Important [ND-SI] category, it primarily finances transport vehicles, and machinery, and extends financial aid to entities within Kerala. Its expanded scope includes BOT/BOOT projects for KSRTC and government bodies, apart from conventional lending schemes. KTDFC, wholly owned by the Government of Kerala, operates via branches in Thiruvananthapuram, Thiruvalla, Ernakulam, Thrissur, and Kozhikode.
• Feature: Senior citizens can enjoy an extra 0.25% interest on their FDs. The deposits in KTDFC cannot be withdrawn before 3 months from the date of deposit. No liens will be acknowledged on these deposits. The minimum period of deposit is one year and the maximum period is 5 years for the tenure of deposit. Up to 3 joint applicants can open a fixed deposit account.
• Interest Rate: The interest rate for the no-senior citizen is 7.00% and for senior citizens is 7.25%.
• Minimum and Maximum Deposit: The minimum deposit accepted for FD is ₹10,000/-.

Fixed Deposits remain a reliable choice for Indians seeking stable income. Picking the right FD scheme for 3 years involves examining interest rates, tenure flexibility, liquidity, and additional advantages. The top five scrutinised schemes offer diverse benefits, catering to different investor preferences. Whether focusing on high-interest rates, flexible terms, or specific needs, these schemes provide a range of options, helping investors meet their financial goals.