When it comes to safe and guaranteed investment options, Fixed Deposits (FDs) continue to be the go-to choice for millions of Indians. In 2025, investors are on the lookout for banks offering the highest FD interest rates to make the most of their hard-earned savings. Whether you are a retiree, salaried individual, or someone building a long-term corpus, understanding where to park your funds can make a big difference.
In this comprehensive guide, we bring you the latest FD rates from over 30 banks in India, including small finance banks, public sector banks, and private lenders. We’ve also included tips, examples, and links to official websites to help you make informed decisions.
FD Rates: Highest Return on FD
| Bank Name | Highest FD Interest Rate (General Public) | Senior Citizen Rate | Special Scheme Name / Tenure |
|---|---|---|---|
| Suryoday Small Finance Bank | 8.60% | 9.10% | 5 Years |
| Jana Small Finance Bank | 8.20% | 8.80% | 5 Years |
| Unity Small Finance Bank | 8.15% | 8.65% | 5 Years |
| AU Small Finance Bank | 8.00% | 8.50% | 18 Months |
| HDFC Bank | 7.35% | 7.85% | 35 Months |
| State Bank of India | 7.25% | 7.75% | Amrit Vrishti (444 Days) |
| Indian Bank | 7.30% | 8.05% (Super Senior) | IND Super 400 Days |
In 2025, the FD landscape is rich with opportunities, especially from small finance banks that are offering interest rates as high as 8.60%. However, while chasing higher returns, it’s important to assess the bank’s credibility, the tenure of the deposit, and tax implications. Whether you’re planning for retirement, saving for your child, or just want to grow your savings safely, fixed deposits remain a smart, dependable choice.
Understanding FD Interest Rates in 2025
Why FD Still Matters in 2025
Even with the growing popularity of mutual funds and stocks, Fixed Deposits remain a low-risk investment option with assured returns. Unlike market-linked investments, FDs are not volatile, making them perfect for:
- Retirees seeking monthly income
- Parents saving for children’s education
- Risk-averse investors looking for capital protection
How FD Interest Rates Work
Banks offer different FD rates based on:
- Tenure: Longer-term FDs usually offer higher rates
- Age: Senior citizens (60+) and super-seniors (80+) get extra interest
- Bank Type: Small Finance Banks tend to offer higher rates than public sector banks
For instance, Suryoday Small Finance Bank offers 8.6% for regular customers and 9.1% for senior citizens for a 5-year deposit. In contrast, SBI offers 7.25% under a special scheme.
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Best FD Rates in India
Top Small Finance Banks with Highest FD Returns
1. Suryoday Small Finance Bank
- Interest Rate: 8.60% (General), 9.10% (Senior Citizens)
- Tenure: 5 Years
- Notable: One of the highest FD returns in India today
2. Jana Small Finance Bank
- Interest Rate: 8.20% (General), 8.80% (Senior Citizens)
- Tenure: 5 Years
3. Unity Small Finance Bank
- Interest Rate: 8.15% (General), 8.65% (Senior Citizens)
- Tenure: 5 Years
4. AU Small Finance Bank
- Interest Rate: 8.00% (General), 8.50% (Senior Citizens)
- Tenure: 18 Months
These banks may not be as well-known as SBI or HDFC, but they are RBI-regulated and offer Deposit Insurance up to ₹5 lakh under DICGC.
Best Public Sector Banks Offering Competitive FD Rates
5. State Bank of India (SBI)
- Scheme: Amrit Vrishti (444 Days)
- Interest Rate: 7.25% (General), 7.75% (Senior Citizens)
6. Indian Bank
- Scheme: IND Super 400 Days
- Interest Rate: Up to 8.05% for Super Seniors
7. Punjab & Sind Bank
- Offers multiple schemes such as 333, 444, 555, 777, and 999 Days
- Rates: Up to 7.45%
Top Private Banks with Attractive FD Options
8. HDFC Bank
- Tenure: 35 Months
- Rates: 7.35% (General), 7.85% (Senior Citizens)
9. ICICI Bank
- Rates: Up to 7.25% (General), 7.85% (Senior Citizens)
10. Axis Bank
- Tenure: 15 Months – 2 Years
- Rates: 7.25% (General), 7.75% (Senior Citizens)
How to Choose the Best FD in 2025
1. Compare Rates & Tenures
Don’t just look at the highest rate. Ensure the tenure matches your financial goal. A 5-year FD locks your money for long.
2. Check Credibility of the Bank
Smaller banks offer higher interest, but verify if they are RBI-licensed and covered under DICGC insurance.
3. Senior Citizens Should Use Special Schemes
Always check if banks offer higher rates for senior citizens. These schemes are ideal for pensioners.
4. Use Online FD Calculators
Most banks offer FD calculators on their website. You can also use the one provided by RBI here
5. Know the Tax Impact
FD interest above ₹50,000 (for senior citizens) is taxable. Consider using Form 15H/15G to avoid TDS if applicable.
see also: Bumper offer on Fixed Deposit! Get tremendous returns up to 9.42%
FD Rates: Highest Return on FD FAQs
Q1. Which bank gives the highest FD rate in 2025?
Suryoday Small Finance Bank offers the highest rate at 8.60% for general citizens.
Q2. Is it safe to invest in small finance banks?
Yes, if they are RBI-regulated and covered under DICGC insurance (up to ₹5 lakh per depositor).
Q3. How is FD interest taxed?
FD interest is taxed as per your income tax slab. If it exceeds ₹50,000 (senior citizens) or ₹40,000 (others), banks deduct TDS.
Q4. Can I break my FD before maturity?
Yes, but penalty charges apply. Always check the premature withdrawal rules before investing.
Q5. Should I invest in one large FD or split into multiple?
Splitting into smaller FDs offers better liquidity and flexibility in case of emergency withdrawals.
