Looking for a safe and stylish way to grow your money in 2025? Some banks in India are now offering Fixed Deposit (FD) interest rates as high as 8.5%, which is a big deal for both new and experienced investors. Whether you’re saving for a vacation, retirement, or just want your money to grow faster than in a regular savings account, these banks might be your best bet.
Huge Return of 8.5% on Fixed Deposits
| Feature | Details |
|---|---|
| Top FD Rate in 2025 | Up to 9.10% p.a. for senior citizens |
| Highest Rate for General Citizens | Up to 8.60% p.a. |
| Best Tenure for Max Returns | 1.5 to 3 years |
| Banks Offering 8.5% or More | DCB Bank, AU SFB, Jana SFB, Unity SFB, Utkarsh SFB, North East SFB, Suryoday SFB, Bajaj Finance |
| Ideal for | Senior Citizens, Risk-Averse Investors, Tax-Savers |
In 2025, Fixed Deposits are stylish again, thanks to high returns and low risk. With rates as high as 8.5% to 9.10%, especially for senior citizens, these FDs are hard to ignore. Whether you’re a first-time saver or a seasoned investor, now is a great time to make your money work for you — safely.
Why Fixed Deposits Still Matter in 2025
Fixed Deposits are still one of the most popular and safest investment options in India. While mutual funds and the stock market offer potentially higher returns, FDs offer peace of mind with guaranteed interest payouts.
And now, with interest rates soaring to 8.5% and even higher for seniors, they have become even more attractive. These rates are way above what most traditional banks offer on savings accounts (typically 2.5% to 4%).
see also: Loan Against FD: What It Is, Who Can Apply
Top Banks Offering Up to 8.5% on Fixed Deposits
Here are the top banks currently offering up to 8.5% (or more) interest on FDs:
1. DCB Bank
- General Citizens: 8.00% for 15 to <16 months
- Senior Citizens: 8.50% for the same tenure
2. AU Small Finance Bank (SFB)
- General Citizens: 8.00% for 18 months
- Senior Citizens: 8.50%
3. Jana Small Finance Bank
- General Citizens: 8.25% (1 to 3 years)
- Senior Citizens: 8.75%
4. Utkarsh Small Finance Bank
- General Citizens: 8.50% (2 to 3 years or 1500 days)
- Senior Citizens: 9.10%
5. Unity Small Finance Bank
- General Citizens: 8.60% for 1001 days
- Senior Citizens: 9.10%
6. North East Small Finance Bank
- All Depositors: 9.00% (18 months 1 day to 36 months)
7. Suryoday Small Finance Bank
- General Citizens: 8.60% for 5 years
- Senior Citizens: 9.10%
8. Bajaj Finance
- General Citizens: 8.60% on 42-month Digital FD Max (up to ₹25,000)
- Senior Citizens: 8.85%
How to Choose the Right FD Scheme for You
Consider Your Financial Goals
If you’re saving for a short-term goal like a holiday or gadget purchase, go for shorter tenure FDs with high interest.
Senior Citizen Benefits
If you’re 60 or older, take advantage of senior citizen FD rates which are often 0.5% to 0.75% higher than regular rates.
Compare Tenure vs Return
Sometimes, longer isn’t better. Some banks offer peak interest for specific tenures, like 1001 days or 18 months.
Choose Reputable Institutions
While small finance banks offer higher rates, ensure the bank is RBI-approved and covered under DICGC insurance (up to ₹5 lakh per depositor).
Tips to Maximize Your FD Returns
- Split your deposits: Use different banks and tenures to get varied returns.
- Reinvest the interest: Choose cumulative FDs where interest is added to the principal.
- Ladder your FDs: Stagger maturity dates to have regular cash flow.
- Don’t break early: Premature withdrawals reduce interest earned.
see also: No Risk, Returns Are Also Guaranteed; Know All the Benefits of Term Deposit
Huge Return of 8.5% on Fixed Deposits FAQs
Q1. Can I get more than 8.5% FD interest in 2025?
Yes. Some small finance banks offer up to 9.10% for senior citizens. However, always verify the latest rates on the official websites.
Q2. Are these FD returns taxable?
Yes. Interest earned on FDs is taxable as per your income slab. If interest exceeds ₹50,000 (or ₹5,000 for senior citizens), TDS may apply.
Q3. Is it safe to invest in small finance banks?
Yes, if the bank is regulated by RBI and deposits are insured under DICGC. However, avoid putting all your savings in one place.
Q4. What is the minimum deposit to get these rates?
Most banks have minimum deposit amounts between ₹1,000 to ₹5,000. Bajaj Finance Digital FD Max offers the best rate on deposits up to ₹25,000.
Q5. How to open an FD online?
You can visit the bank’s official website or mobile app, complete KYC digitally, and fund the FD from your account.
