Fixed Deposits (FDs) have long been a preferred investment option for risk-averse investors. Recently, several banks have revised their FD interest rates, offering attractive returns to both general citizens and senior citizens. In this article, we break down the latest FD interest rate updates, compare different banks, and help you make an informed investment decision.
Latest Fixed Deposit Interest Rates
| Aspect | Details |
|---|---|
| Highest FD Rate (General Citizens) | Ujjivan Small Finance Bank: 8.25% (18 months) |
| Highest FD Rate (Senior Citizens) | Shivalik Small Finance Bank: 9.05% (12 months – 18 months) |
| HDFC Bank (Top Commercial Bank) | 7.35% (35 months) |
| ICICI Bank FD Rate | 7.25% (15 months – 2 years) |
| Latest Effective Date | February 2025 |
Fixed Deposits continue to be a reliable investment option in 2025, with many banks offering attractive interest rates. Whether you are a general citizen or a senior citizen, comparing interest rates, bank credibility, and tenure options can help you make the best decision. For higher returns, consider Small Finance Banks like Ujjivan or Shivalik, while HDFC and ICICI remain stable choices for long-term security.
Why Fixed Deposits Are a Smart Investment?
FDs are one of the safest investment instruments that offer guaranteed returns over a fixed tenure. Here’s why they remain a popular choice:
- Zero Market Risk: Unlike stocks or mutual funds, FDs are not affected by market fluctuations.
- Steady Growth: They provide fixed interest rates over a pre-decided period.
- Flexible Tenure: Choose from a short-term FD (7 days) to long-term FDs (10 years).
- Senior Citizen Benefits: Special higher interest rates for senior citizens.
- Loan Against FD: You can avail a loan up to 90% of your FD amount.
see also: Axis Bank Fixed Deposit Update Higher Interest Rates
Latest Fixed Deposit Interest Rates (Bank-Wise Comparison)
1. Ujjivan Small Finance Bank (Best for General Citizens)
- General Citizens: 8.25% (18 months)
- Senior Citizens: 8.75% (18 months)
- Effective From: February 21, 2025
2. Shivalik Small Finance Bank (Best for Senior Citizens)
- General Citizens: 8.55% (12 months – 18 months)
- Senior Citizens: 9.05% (12 months – 18 months)
- Effective From: February 18, 2025
3. Karnataka Bank (Mid-Sized Bank with Competitive Rates)
- General Citizens: 7.50% (401 days)
- Senior Citizens: 8.00% (401 days)
- Effective From: February 18, 2025
4. HDFC Bank (Best Private Sector Bank for FDs)
- General Citizens: 7.35% (35 months)
- Senior Citizens: 7.85% (35 months)
- Effective From: February 2025
5. ICICI Bank (Stable and Secure FD Option)
- General Citizens: 7.25% (15 months – 2 years)
- Senior Citizens: 7.85% (15 months – 2 years)
- Effective From: February 2025
How to Choose the Best Fixed Deposit Plan?
When selecting an FD, consider the following factors:
1. Compare Interest Rates
Higher rates mean better returns. Check updated FD interest rates before investing.
2. Check the Bank’s Credibility
Go for reputed banks like HDFC, ICICI, or SBI for stability. For better returns, Small Finance Banks (like Ujjivan and Shivalik) are great choices but ensure they are RBI-registered.
3. Choose the Right Tenure
Longer tenure may not always be beneficial. Compare short-term vs. long-term rates to maximize gains.
4. Consider Special FD Schemes
Many banks offer tax-saving FDs, monthly payout FDs, and senior citizen-exclusive plans with extra benefits.
5. Understand Premature Withdrawal Rules
Some banks charge high penalties for premature withdrawal. Ensure you check the terms before investing.
see also: Which Bank is Offering the Highest Interest Rate on Fixed Deposits? SBI, PNB, ICICI, or HDFC?
Latest Fixed Deposit Interest Rates FAQs
1. Which bank gives the highest FD interest rate in 2025?
Currently, Shivalik Small Finance Bank offers the highest interest rate at 9.05% for senior citizens and 8.55% for general citizens (12 months – 18 months).
2. Is FD better than Mutual Funds?
FDs are safe with guaranteed returns, while mutual funds involve market risks but potentially higher returns. Choose based on your risk appetite.
3. How can I invest in an FD?
You can invest online via net banking or mobile banking, or offline by visiting the nearest bank branch.
4. Are Small Finance Banks safe for FDs?
Yes, if they are RBI-approved. However, deposits are insured only up to ₹5 lakh under DICGC.
5. What is the best tenure for FD?
If you need high returns, go for 12-18 months where interest rates are highest. If you want long-term savings, choose 3-5 years.
