If you’re considering investing in a Fixed Deposit (FD) in India, understanding the current interest rates is crucial. As of April 2025, various banks offer competitive FD rates, providing opportunities to grow your savings securely. For instance, investing ₹10 lakh in an FD with an annual interest rate of 7.00% can yield approximately ₹1.4 lakh over 4 years and 7 months.
Fixed Deposit Interest Rates in India (April 2025)
| Bank | Interest Rate (General) | Interest Rate (Senior Citizens) | Special Schemes |
|---|---|---|---|
| HDFC Bank | Up to 7.25% p.a. | Up to 7.75% p.a. | Various tenures with competitive rates |
| ICICI Bank | Up to 7.25% p.a. | Up to 7.80% p.a. | Golden Years Scheme for senior citizens |
| Axis Bank | Up to 7.25% p.a. | Up to 7.75% p.a. | Tenures between 15 months and less than 2 years |
| State Bank of India (SBI) | Up to 7.05% p.a. | Up to 7.55% p.a. | “Amrit Vrishti” 444-day scheme |
| Central Bank of India | Up to 7.50% p.a. | Up to 7.80% p.a. | Special term deposits with various tenures |
| Bajaj Finance | Up to 8.35% p.a. | Up to 8.60% p.a. | FD Max for deposits up to ₹25,000 |
Fixed Deposits continue to be a reliable, low-risk investment avenue in 2025. With interest rates reaching up to 8.60% p.a., especially for senior citizens, now is a good time to lock in your savings. Whether you’re aiming to earn a steady monthly return or build wealth securely over the years, comparing FD options carefully can help you maximize your gains while ensuring capital safety.
Understanding Fixed Deposits
A Fixed Deposit (FD) is a financial instrument provided by banks and Non-Banking Financial Companies (NBFCs) that offers investors a higher interest rate than a regular savings account, until the given maturity date.
Key Features:
- Safety: FDs are considered one of the safest investment options.
- Fixed Returns: Interest rates are fixed and not affected by market fluctuations.
- Flexible Tenures: Tenure ranges from 7 days to 10 years.
- Interest Payout Options: Investors can choose periodic interest payouts or receive the interest at maturity.
see also: Post Office MIS Scheme: Every Month You Will Get Rs 9,250, Invest Only Once
Detailed Guide: How to Choose the Right FD
1. Determine Your Investment Goals
- Short-Term Goals: If you need funds in the near future, opt for shorter tenures.
- Long-Term Goals: For wealth accumulation, longer tenures with higher interest rates are preferable.
2. Compare Interest Rates
Interest rates vary across banks and NBFCs. For instance, as of April 2025:
- Bajaj Finance: Offers up to 8.35% p.a. for general investors and up to 8.60% p.a. for senior citizens on a 42-month tenure.
- HDFC Bank: Provides up to 7.25% p.a. for general investors and up to 7.75% p.a. for senior citizens.
3. Consider Special Schemes
Some banks offer special FD schemes with higher interest rates for specific tenures. For example:
- SBI’s “Amrit Vrishti”: 444-day scheme offering 7.05% p.a. for general investors and 7.55% p.a. for senior citizens.
- Central Bank of India: Special term deposits with tenures like 444 days offering up to 7.80% p.a. for senior citizens.
4. Evaluate the Credibility of the Institution
Ensure the bank or NBFC is reputable and has a good credit rating. For instance, Bajaj Finance FDs are rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE), indicating high safety.
5. Understand Tax Implications
Interest earned on FDs is taxable. If the interest income exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, Tax Deducted at Source (TDS) is applicable.
Practical Example: Earning ₹1.4 Lakh on a ₹10 Lakh FD
Let’s consider an investment of ₹10 lakh in an FD with an annual interest rate of 7.00% for a tenure of 4 years and 7 months (55 months).
SBI, HDFC और PNB में FD कराने वालों के लिए बड़ा झटका! समय से पहले निकासी पर लगेगा भारी चार्ज
Calculation:
- Principal Amount: ₹10,00,000
- Interest Rate: 7.00% p.a.
- Tenure: 55 months
- Maturity Amount: Approximately ₹11,40,000
- Interest Earned: ₹1,40,000
This calculation assumes compounding on a quarterly basis, which is common in Indian bank FDs. You can try your own numbers using tools like the Groww FD Calculator.
see also: Bank of India Closed This Special FD Scheme, Interest Rates Also Reduced
Fixed Deposit Interest Rates FAQs
Q1. What is the highest FD interest rate in April 2025?
As of now, Bajaj Finance offers the highest FD rate of up to 8.35% p.a. for general investors and 8.60% p.a. for senior citizens.
Q2. Is FD safe for investment in 2025?
Yes, FDs in India are one of the safest investment options, especially those held in scheduled commercial banks or AAA-rated NBFCs like Bajaj Finance.
Q3. Can I withdraw FD before maturity?
Yes, most banks allow premature withdrawal but with a penalty—typically 0.50% to 1.00% lower than the contracted interest rate.
Q4. How is interest on FD taxed?
Interest is fully taxable under “Income from Other Sources” as per your income slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).
Q5. Can I get monthly interest from my FD?
Yes, you can choose the non-cumulative option which pays out interest monthly, quarterly, or annually, depending on your preference.
