Long-Term Fixed Deposits (3 – 10 years)
Lock in today’s rate for 3–10 years — current long-tenure rates, the reinvestment trade-off, tax on accrued interest and inflation risk.
Updated 27 September 2026 · 25 banks trackedWhat you need to know
Long-term FDs (3 to 10 years) protect you from falling rates because the rate is fixed for the whole tenure. The trade-off is lower liquidity and the fact that interest is taxed every year even on a cumulative FD. With the repo rate at 5.25%, many banks now pay less for 5–10 years than for 2–3 years, so longer is not always better.
3-year and 5-year rates compared
| Bank | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| IDFC FIRST Bank | 6.50% Sr: 6.75% | 7.25% Sr: 7.50% | 7.25% Sr: 7.50% | 6.75% Sr: 7.00% |
| Bandhan Bank | 7.00% Sr: 7.50% | 7.45% Sr: 7.95% | 7.25% Sr: 7.75% | 5.85% Sr: 6.60% |
| RBL Bank | 7.00% Sr: 7.50% | 7.20% Sr: 7.70% | 7.20% Sr: 7.70% | 7.00% Sr: 7.50% |
| YES Bank | 6.65% Sr: 7.15% | 7.00% Sr: 7.50% | 7.00% Sr: 7.75% | 7.00% Sr: 7.75% |
| Federal Bank | 6.25% Sr: 6.75% | 6.40% Sr: 6.90% | 6.75% Sr: 7.25% | 6.40% Sr: 6.90% |
| Bank of India | 6.50% Sr: 7.00% | 6.60% Sr: 7.10% | 6.70% Sr: 7.45% | 6.00% Sr: 6.75% |
| IndusInd Bank | 6.75% Sr: 7.25% | 6.90% Sr: 7.40% | 6.65% Sr: 7.15% | 6.65% Sr: 7.15% |
| Tamilnad Mercantile Bank | 6.80% Sr: 7.30% | 6.60% Sr: 7.10% | 6.60% Sr: 7.10% | 6.60% Sr: 7.10% |
| HDFC Bank | 6.25% Sr: 6.75% | 6.45% Sr: 6.95% | 6.50% Sr: 7.00% | 6.40% Sr: 6.90% |
| Axis Bank | 6.25% Sr: 6.75% | 6.50% Sr: 7.00% | 6.50% Sr: 7.00% | 6.50% Sr: 7.25% |
| Standard Chartered Bank | 6.60% Sr: 7.10% | 6.50% Sr: 7.00% | 6.50% Sr: 7.00% | 6.25% Sr: 6.75% |
| ICICI Bank | 6.25% Sr: 6.75% | 6.30% Sr: 6.80% | 6.45% Sr: 6.95% | 6.50% Sr: 7.10% |
| Kotak Mahindra Bank | 6.35% Sr: 6.85% | 6.80% Sr: 7.30% | 6.40% Sr: 6.90% | 6.25% Sr: 6.75% |
| IDBI Bank | 6.20% Sr: 6.70% | 6.25% Sr: 6.75% | 6.35% Sr: 6.85% | 6.25% Sr: 6.75% |
| State Bank of India | 6.25% Sr: 6.75% | 6.40% Sr: 6.90% | 6.30% Sr: 6.80% | 6.05% Sr: 7.05% |
| Punjab National Bank | 6.25% Sr: 6.75% | 6.30% Sr: 6.80% | 6.30% Sr: 6.80% | 6.10% Sr: 6.60% |
| Bank of Baroda | 6.25% Sr: 6.75% | 6.25% Sr: 6.75% | 6.25% Sr: 6.75% | 6.30% Sr: 6.90% |
| Canara Bank | 6.25% Sr: 6.75% | 6.25% Sr: 6.75% | 6.25% Sr: 6.75% | 6.25% Sr: 6.75% |
| South Indian Bank | 6.25% Sr: 6.75% | 5.85% Sr: 6.35% | 6.20% Sr: 6.70% | 5.70% Sr: 6.20% |
| Karnataka Bank | 6.50% Sr: 6.90% | 6.40% Sr: 6.80% | 6.15% Sr: 6.55% | 6.15% Sr: 6.55% |
| Indian Bank | 6.10% Sr: 6.60% | 6.20% Sr: 6.70% | 6.15% Sr: 6.65% | 6.00% Sr: 6.50% |
| Union Bank of India | 6.20% Sr: 6.70% | 6.15% Sr: 6.65% | 6.10% Sr: 6.60% | 6.00% Sr: 6.50% |
| Indian Overseas Bank | 6.50% Sr: 7.00% | 6.40% Sr: 6.90% | 6.10% Sr: 6.60% | 6.10% Sr: 6.60% |
| Central Bank of India | 6.20% Sr: 6.70% | 6.25% Sr: 6.75% | 6.00% Sr: 6.50% | 6.00% Sr: 6.50% |
| Bank of Maharashtra | 6.20% Sr: 6.70% | 6.15% Sr: 6.60% | 5.25% Sr: 5.75% | 5.00% Sr: 5.50% |
Rate that applies to a deposit of exactly that tenure on each bank’s current card. Sorted by 3-year rate. “—” means the bank’s published card has no slab covering that tenure; check with the bank.
Pros and cons
- Rate locked even if RBI cuts rates
- Power of quarterly compounding over many years
- Good for known long-term goals
- Interest taxed yearly on accrual basis
- Inflation can erode real returns
- Penalty and lower rate if broken early
- Many banks pay less for 5–10 years than 2–3 years
Tips
- Split a large amount into a ladder (1–5 years) instead of one 10-year FD.
- Declare accrued interest every year in your ITR — TDS is deducted yearly even on cumulative FDs.
- For goals beyond 7 years, compare with PPF (7.1%, tax-free) and diversified mutual funds.
Frequently asked questions
What is the longest FD tenure?
Usually 10 years; IDBI Bank offers up to 20 years.
Is interest taxed yearly on a 10-year cumulative FD?
Yes. Interest accrues every year and is taxable in that year; banks deduct TDS annually if the threshold is crossed.
Information is for education and comparison. Rates and rules change — confirm with your bank and a tax adviser before investing. FinancePortal is not a financial or tax adviser.