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We are travelling to the USA via Frankfurt. We are holding a valid USA visa. Do we need a transit visa for Germany? We have a stopover of 3 hours and will not leave the airport.

Travelling from Bangalore to Tampa.

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No. You won't need a transit visa for Germany (Schengen area) if you do not leave the transit area.

Assuming that you have Indian citizenship, since you have a valid US visa, you are allowed to transit through Germany if your flight is scheduled to depart in the next 48 hours. Just stay in the transit area and DO NOT head to passport control in Frankfurt.

See "General exceptions" section here

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    That may not be true, it depends on the citizenship. Assuming citizenship is a thin line.
    – Willeke
    Commented Jan 18 at 16:54

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