Best Fd Interest Rates With 3 Year Tenure

FD Rates for 3-Year Tenure

The Indian banks have understood the gravity of the FD interest rates for three years. On 3-year fixed deposits, many banks offer favourable interest rates. Compared to accounts with 1 or 2-year terms, the income earned on 3-year deposits is substantially higher.

Three-year Fixed Deposit Highlights

The highlights of the FD for three years are as follows:

• The minimum deposit amount is INR 1000
• Bajaj Finance Ltd. Corporate FD offers the highest rate of interest on FD for three years
• Senior citizens get an additional 0.5% interest rate

Advantages of 3-year Fixed Deposit

Advantages of a 3-year fixed deposit are:

• It is perfect for short-term saving objectives
• It offers the best FD rates in India for three years
• The loan equivalency is up to 95% of the amount deposited
• It provides provision for nominating a person at the beginning
• Premature withdrawal of the FD requires a penalty to be paid
• Market fluctuations do not interfere with the 3-year fixed deposit

How to Calculate your 3-Year Fixed Deposit Interest Rates?

Calculating interest rates through an FD calculator is more convenient than doing the same manually, as it saves time and effort while keeping manual errors at bay. The formula below is used to determine the FD interest amount:

Simple Interest Formula

The primary interest calculation is:

SI = P x R x T/100

Here,

“P” stands for the principal sum,

“R” for the interest rate,

and

“T” for the tenure.

Compound Interest Formula

The formula for compound interest is

A = P (1+r/n) ^ (n * t)

Here,

“P” stands for the principal,

“A” for the maturity amount,

“R” for the interest rate,

“n” for the compounding years,

And,

“T” for the tenure.

How to Choose the best 3-year fixed deposit for you?

You must be aware of the following to choose the best FD for three years:

 

• The interest rate that the bank or other financial institution offers is the first factor to be evaluated. The maturity amount would increase with a greater interest rate.
• The investor should also choose between a Cumulative and Non-Cumulative FD before investing. This determination helps in determining the frequency of the interest payouts.
• The investor must also mention the fee the institution charges for early withdrawals because they might require money from the scheme in an emergency. The investor should select a programme that charges nominal interest rates.

What Makes Urban Money Ideal for Opening a Fixed Deposit Investment?

Urban Money offers its consumers hassle-free banking and financial services with innovative digital solutions. When investors start their investment journey, Urban Money wants to ensure they have a positive experience. Its services validate that investors receive the most effective interest rates on their fixed deposit investments, enabling them to reach their financial objectives easily.