FD Rates: Get Up to 9.5% Interest on Fixed Deposits

Fixed Deposits (FDs) have long been a trusted investment option for those looking for safe and steady returns. In 2025, some banks in India are offering FD interest rates as high as 9.5%, making it an excellent time for investors to lock in these attractive returns. This article provides a detailed breakdown of the best banks offering high FD interest rates, how FDs work, and tips to maximize your earnings.

Get Up to 9.5% Interest on Fixed Deposits

Feature	Details
Highest FD Interest Rate	Up to 9.5%
Best Bank for FDs	Unity Small Finance Bank, North-East Small Finance Bank, Suryoday Small Finance Bank, etc.
Best Tenure for High Returns	1.5 to 3 years
Deposit Insurance Coverage	Up to ₹5 lakh under DICGC
Risk Level	Low (for scheduled and insured banks)
Best for	Senior citizens, risk-averse investors, and those looking for stable income

Fixed deposits remain one of the safest investment options, and 2025 brings excellent FD interest rates, up to 9.5%, for investors looking for stable returns. By choosing the right bank, tenure, and scheme, you can maximize your returns while ensuring financial security. Always check the latest rates and bank policies before investing.

Why Consider Fixed Deposits in 2025?

With market volatility and inflation affecting investment choices, fixed deposits remain a safe bet for conservative investors. FDs offer guaranteed returns, and many banks have increased their rates to attract depositors. If you’re looking for a low-risk investment with decent returns, FDs are worth considering.

Best Banks Offering High FD Interest Rates in 2025

1. Unity Small Finance Bank – Up to 9.5%

General FD Rate: 9.0% for 1001 days
Senior Citizen FD Rate: 9.5% for 1001 days
Minimum Deposit: ₹1,000
Insured by DICGC: Yes

2. North-East Small Finance Bank – Up to 9%

General FD Rate: 9.0% for 1.5 to 3 years
Senior Citizen FD Rate: 9.25% for 1.5 to 3 years
Minimum Deposit: ₹10,000
Insured by DICGC: Yes

3. Suryoday Small Finance Bank – Up to 9.1%

General FD Rate: 8.6% for 3 years
Senior Citizen FD Rate: 9.1% for 3 years
Minimum Deposit: ₹1,000
Insured by DICGC: Yes

4. Utkarsh Small Finance Bank – Up to 9.1%

General FD Rate: 8.5% for 3 years
Senior Citizen FD Rate: 9.1% for 3 years
Minimum Deposit: ₹1,000
Insured by DICGC: Yes

5. Jana Small Finance Bank – Up to 8.75%

General FD Rate: 8.25% for 3 years
Senior Citizen FD Rate: 8.75% for 3 years
Minimum Deposit: ₹1,000
Insured by DICGC: Yes

How to Choose the Best Fixed Deposit for You?

1. Compare Interest Rates

Check which banks offer the highest FD rates.
Consider tenure-based rates since longer durations may have better returns.

2. Look for Additional Benefits

Some banks offer higher rates for senior citizens.
Special schemes with bonus interest rates.

3. Ensure Deposit Insurance Safety

Always choose DICGC-insured banks, covering up to ₹5 lakh per depositor.

4. Consider Liquidity and Premature Withdrawal Charges

Check if you can withdraw early without heavy penalties.

Tax Implications on Fixed Deposits

TDS (Tax Deducted at Source) applies if interest income exceeds ₹40,000 (₹50,000 for seniors).
Investors can submit Form 15G/15H to avoid TDS if total income is below the taxable limit.
FD interest is added to your total income and taxed as per your slab.