Fixed Deposits (FDs) continue to be one of the most trusted and secure ways to grow your savings in 2025. With banks now offering interest rates as high as 9%, it’s no surprise that both first-time investors and seasoned professionals are eyeing these safe instruments for stable returns. But the question is — which bank is offering the most benefit on your investment right now?
In this guide, we’ll break down the best FD interest rates in India as of March 31, 2025, compare small finance banks, private banks, and public sector offerings, and help you decide where to invest for the maximum benefit. Whether you’re investing Rs 10,000 or Rs 10 lakh, this article gives you clear, actionable information.
Are You Investing Money in FD?
| Feature | Details |
|---|---|
| Highest FD Interest Rate (General Citizens) | 9.00% by North East Small Finance Bank (3 years) |
| Best FD for Senior Citizens | 9.00% by North East Small Finance Bank |
| Top Public Sector Bank FD Rate | SBI: Up to 7.10% under special scheme |
| Top Private Bank FD Rate | IndusInd Bank: Up to 7.99% for 3 years |
| Best Short-Term FD Option | SBI Amrit Kalash: 7.10% for 400 days |
| FD for Tax Saving (5 years) | Suryoday SFB: 8.6% interest rate |
| Special FDs Ending March 31, 2025 | SBI Amrit Kalash, SBI Amrit Vrishti, IDBI Utsav |
Choosing the right FD in 2025 can significantly boost your earnings. With banks like North East SFB, Suryoday, and IndusInd offering 8%+ interest rates, now is the time to act. Just remember to align your FD with your financial goals, tenure needs, and risk profile.
Why Are FD Interest Rates Rising in 2025?
FD interest rates are linked to the RBI’s repo rate, which has remained steady but elevated to control inflation. With inflation pressures still high, banks are offering higher returns to attract deposits. Plus, competition from mutual funds and gold has nudged banks to offer attractive FD interest rates to remain competitive. Small Finance Banks (SFBs) especially are offering 8.5% to 9% to build their deposit base.
see also: Get Rs 14 lakh on opening RD account in post office, see details
Best FD Interest Rates in India – March 2025
Small Finance Banks Offering the Highest FD Rates
- North East Small Finance Bank
Interest Rate: 9.00% (3 years for senior citizens)
Ideal for: Senior citizens looking for short to medium term safe income
Tax-Saving FD: Available under 80C - Suryoday Small Finance Bank
Interest Rate: 8.6% (5 years for general citizens)
Great for tax-saving + high interest - Jana Small Finance Bank
Interest Rate: 8.2% (5 years for general citizens)
Tip: Always check if the bank is covered under DICGC insurance for safety of deposits up to Rs 5 lakh.
Top FD Rates by Private Sector Banks
- IndusInd Bank
7.99% (3-year FD, general citizens)
Senior Citizens: 8.25% - Bandhan Bank
8.05% (1 year), 7.25% (3 years) - ICICI Bank
7.25% (general), 7.85% (senior citizens)
Top Public Sector Bank FD Rates
- State Bank of India (SBI)
7.10% (Amrit Kalash – 400 days) general
7.60% for senior citizens - Bank of Baroda
6.85% (1 year), 7.15% (3 years)
Special Limited-Time FD Schemes Ending March 31, 2025
Many banks are offering limited-period FDs that end today (March 31, 2025):
SBI Amrit Kalash
- Tenure: 400 days
- Interest: 7.10% (general), 7.60% (senior)
SBI Amrit Vrishti
- Tenure: 444 days
- Interest: 7.25% (general), 7.75% (senior)
IDBI Utsav FD
- Tenure: 375, 444, or 555 days
- Highest: 8.05% for super senior citizens (above 80 years)
Reminder: If you’re planning to invest in any of these schemes, today is your last chance!
How to Choose the Best FD for You
1. Compare Based on Your Profile
- Senior Citizens: Look for banks offering additional 0.5% or more.
- Tax Savers: Opt for 5-year tax-saving FDs under Section 80C.
2. Decide Tenure Wisely
- Short-term needs? Choose 400-day or 1-year FDs.
- Long-term returns? Go for 3 to 5-year options with higher interest.
3. Use FD Calculators
- Use SBI FD Calculator or ICICI FD Calculator to know how much you’ll earn.
Example: How Much Will You Earn?
Let’s say you invest ₹1 lakh in Suryoday SFB for 5 years at 8.6%:
- Interest Earned: Rs 51,978
- Maturity Amount: Rs 1,51,978
Now, investing the same in SBI at 6.5% for 5 years:
- Interest Earned: Rs 37,596
- Maturity Amount: Rs 1,37,596
Insight: That’s a difference of over Rs 14,000 just by choosing the right bank!
see also: Depositing just Rs 2,000 will give you a return of Rs 14,97,160 after so many years
Investing Money in FD FAQs
Q1. Is it safe to invest in small finance banks?
Yes, as long as they are RBI-regulated and your deposit is within the Rs 5 lakh DICGC limit, your money is insured.
Q2. What is the highest FD rate in India right now?
Currently, North East Small Finance Bank offers up to 9.00% for senior citizens.
Q3. Can I break an FD before maturity?
Yes, but you may incur a penalty of 0.5% to 1% on the interest.
Q4. Are FD interests taxable?
Yes, the interest earned is taxable as per your income slab. However, you can invest in 5-year tax-saving FDs under Section 80C.
Q5. How to avoid TDS on FD?
Submit Form 15G/15H if your annual interest is below taxable limits.
