In October, 10 banks offered interest rates of 7.5% and above for 3-year fixed deposits.

Fixed deposit (FD) rates have increased in response to the Reserve Bank of India’s (RBI) high repo rate. Now is the time to lock in high FD rates, as they may decline as inflation stabilizes and the RBI considers a rate cut. Among small finance banks, NorthEast Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank are offering 9%, 8.6%, and 8.5% interest rates for a three-year tenure, respectively. In the private sector, DCB Bank, RBL Bank, and SBM Bank India offer 7.55%, 7.5%, and 7.3% interest rates, respectively. Public sector banks such as Bank of Baroda and Punjab National Bank offer 7.15% and 7% interest rates, respectively. The tax on FD interest is based on the interest earned, not the principal amount, and is subject to income tax slab rates. To avoid tax deductions, individuals can submit Form 15G at the start of the financial year. With interest rates predicted to decline, now is the time to lock in high FD rates and secure returns.

Source: https://www.business-standard.com/finance/personal-finance/fd-rates-in-october-10-banks-offer-7-5-more-interest-for-3-year-tenures-124101600646_1.html