Which Bank is Offering the Highest Interest Rate on Fixed Deposits? SBI, PNB, ICICI, or HDFC?

Fixed Deposits (FDs) remain one of the safest and most popular investment options in India. With interest rates fluctuating due to economic conditions and Reserve Bank of India (RBI) policies, choosing the right bank for your FD can make a significant difference in returns. If you’re looking for the highest interest rate on FDs among SBI, PNB, ICICI, and HDFC Bank, this guide will help you make an informed decision.

Highest Interest Rate on Fixed Deposits

Bank	Highest Interest Rate	Tenure	Senior Citizen Rate
PNB	7.45%	400 days	7.75%
HDFC	7.40%	4 years 7 months	7.90%
SBI	7.25%	444 days	7.75%
ICICI	7.25%	15 months – 18 months	7.75%

Choosing the right bank for your fixed deposit depends on interest rates, tenure, and flexibility. PNB currently offers the highest FD rate at 7.45%, followed by HDFC Bank at 7.40%. SBI and ICICI Bank also provide competitive rates. Before investing, always check the latest interest rates on official bank websites and consider factors like liquidity, penalties, and senior citizen benefits.

Why Fixed Deposits Are a Safe Bet

Fixed deposits provide a guaranteed return on investment, making them a preferred choice for risk-averse investors. Unlike stocks or mutual funds, FD interest rates are fixed at the time of investment and do not fluctuate with market conditions.

FD Interest Rates Comparison: SBI vs. PNB vs. ICICI vs. HDFC

Let’s break down the interest rates and features offered by each of these top banks.

1. Punjab National Bank (PNB) Fixed Deposits

PNB currently offers the highest FD interest rate at 7.45% for a 400-day tenure.

• For senior citizens, PNB provides an additional 0.50% to 0.75% depending on the tenure.
• The interest payout options include monthly, quarterly, or yearly.
• PNB FDs are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC), covering deposits up to ₹5 lakh per individual.

2. HDFC Bank Fixed Deposits

HDFC Bank offers an interest rate of 7.40% for a special tenure of 4 years 7 months.

• Senior citizens get up to 7.90% interest on select tenures.
• HDFC Bank also provides FD overdraft facilities, allowing you to borrow against your FD without breaking it.
• Interest can be received on a cumulative (reinvested) or non-cumulative (monthly/quarterly) basis.

3. State Bank of India (SBI) Fixed Deposits

SBI, India’s largest public sector bank, offers an FD interest rate of 7.25% for a 444-day tenure.

• Senior citizens get an additional 0.50%, making it 7.75%.
• SBI FDs provide a loan facility against deposits.
• You can withdraw FDs before maturity, though premature withdrawal penalties apply.

4. ICICI Bank Fixed Deposits

ICICI Bank offers an FD interest rate of 7.25% for a tenure of 15 months to less than 18 months.

• Senior citizens get an interest rate of 7.75%.
• ICICI Bank allows auto-renewal and loan against FD.
• It also provides quarterly and monthly interest payout options.

see also: This bank is giving the best returns on FD scheme, see full details

How to Choose the Best FD Option

While the interest rate is a major deciding factor, here are a few more considerations:

1. Investment Tenure: Choose a bank offering the highest rate for a period that suits your financial goals.
2. Senior Citizen Benefits: If you’re above 60, look for banks offering additional interest rates.
3. Liquidity Needs: Opt for a shorter tenure FD if you might need funds sooner.
4. Premature Withdrawal Penalty: Check penalties for withdrawing your FD before maturity.
5. Compounding Frequency: Choose quarterly or yearly compounding for better returns.

How to Open an FD Online

Most banks now allow you to open an FD online in just a few minutes. Here’s how:

1. Log in to your bank’s net banking portal or mobile app.
2. Navigate to the Fixed Deposit section.
3. Choose the tenure, amount, and payout type.
4. Confirm and fund your FD using your savings account.
5. Receive a digital FD receipt as proof of investment.

see also: Post Office Scheme You will get a good return of Rs 6,97,033 in just 5 years

Highest Interest Rate on Fixed Deposits FAQs

1. Which bank has the highest FD interest rate in 2025?

Currently, PNB offers the highest interest rate of 7.45% for a 400-day tenure.

2. What is the safest bank for fixed deposits?

All scheduled commercial banks in India are regulated by RBI and covered by DICGC insurance for deposits up to ₹5 lakh, making them equally safe.

3. Can I withdraw my FD before maturity?

Yes, but most banks charge a premature withdrawal penalty, typically 0.50% to 1% of the interest rate.

4. Do senior citizens get better FD rates?

Yes, senior citizens usually get an additional 0.50% to 0.75% interest on FDs.

5. Which is better: FD or RD?

FDs are better for lump sum investments, while RDs (Recurring Deposits) help those who want to invest small amounts regularly.