If you’re looking for a safe and rewarding way to grow your savings, then this might be your moment. Several banks in India are now offering Fixed Deposits (FDs) with interest rates of 8% or more. In a time when stock markets are volatile and inflation is eating into returns, fixed deposits remain one of the most secure and predictable investment tools.
Opportunity to Invest in FD
| Point | Details |
|---|---|
| Highest FD Interest Rate | Up to 9.00% |
| Top Banks Offering 8%+ | NorthEast SFB, Suryoday SFB, Unity SFB, Utkarsh SFB, Shivalik SFB, and more |
| Best Tenure for 8%+ Interest | Between 1 year and 3 years |
| Senior Citizen Rates | Up to 9.10% |
| Type of Banks | Mainly Small Finance Banks (SFBs) |
| Deposit Safety | Covered under DICGC insurance up to ₹5 lakh |
If you’re looking for a low-risk investment with assured returns, these high-interest FDs are a golden opportunity. With rates reaching up to 9.00%, especially for senior citizens, this is the right time to lock in your funds and earn better than average returns. Just make sure to compare banks, check tenures, and stay within safety limits.
What Are Fixed Deposits (FDs) and Why Choose Them?
Fixed Deposits are investment instruments provided by banks where you deposit a lump sum amount for a fixed period, and the bank pays you interest at a predetermined rate. They’re ideal for low-risk investors, senior citizens, and even beginners looking for guaranteed returns.
Key benefits of FDs:
- Guaranteed returns with zero market risk
- Flexible tenure ranging from 7 days to 10 years
- Premature withdrawal options (with penalties)
- Higher interest rates for senior citizens
see also: Attractive Investment Scheme of Post Office
Top 10 Banks Offering 8% or More FD Interest in April 2025
Here are the best banks where you can earn 8% or higher interest on your fixed deposits:
1. NorthEast Small Finance Bank
- Interest Rate: 9.00%
- Tenure: 18 months 1 day to 36 months
- Senior Citizen Rate: 9.00%
2. Suryoday Small Finance Bank
- Interest Rate: 8.60%
- Tenure: 5 years
- Senior Citizen Rate: 9.10%
3. Unity Small Finance Bank
- Interest Rate: 8.60%
- Tenure: 1001 days
- Senior Citizen Rate: 9.10%
4. Utkarsh Small Finance Bank
- Interest Rate: 8.50%
- Tenure: 2 to 3 years, or 1500 days
- Senior Citizen Rate: 9.10%
5. Shivalik Small Finance Bank
- Interest Rate: 8.55%
- Tenure: 12 months 1 day to less than 18 months
- Senior Citizen Rate: 9.05%
6. Equitas Small Finance Bank
- Interest Rate: 8.25%
- Tenure: 888 days
- Senior Citizen Rate: 9.00%
7. Jana Small Finance Bank
- Interest Rate: 8.25%
- Tenure: 1 year to 3 years
- Senior Citizen Rate: 8.75%
8. Bandhan Bank
- Interest Rate: 8.05%
- Tenure: 1 year
- Senior Citizen Rate: 8.55%
9. RBL Bank
- Interest Rate: 8.00%
- Tenure: 500 days
- Senior Citizen Rate: 8.50%
10. DCB Bank
- Interest Rate: 8.00%
- Tenure: 15 months to less than 16 months
- Senior Citizen Rate: 8.50%
How Safe Are These High-Interest FDs?
While many high-interest options are offered by Small Finance Banks (SFBs), it’s natural to wonder about safety. Here’s what you need to know:
- All scheduled banks in India are covered under DICGC insurance, which protects deposits up to ₹5 lakh per customer per bank.
- Most of these banks are RBI-regulated and follow strict compliance norms.
Pro Tip: Diversify your FDs across multiple banks if you’re investing more than ₹5 lakh.
Step-by-Step Guide to Invest in These High-Interest FDs
Step 1: Compare Interest Rates
Visit official bank websites and compare the latest FD rates, tenure, and special schemes.
Step 2: Choose Your Tenure and Amount
Decide how long you want to invest and how much. Longer tenures often give higher interest.
Step 3: Open FD Account
You can do this online or by visiting the nearest branch. Provide KYC documents and complete the application.
Step 4: Choose Interest Payout Option
Decide whether you want monthly/quarterly payouts or a lump sum at maturity.
Step 5: Monitor & Renew
Track your FD maturity date and renew it if needed, or reinvest for compounding.
Practical Tips to Maximize FD Returns
- Invest just below ₹5 lakh in each bank to stay within DICGC protection limits.
- Choose cumulative FDs to take advantage of compounding.
- Ladder your FDs across different tenures for better liquidity.
- Look for special schemes, like 999-day FDs or 500-day FDs, which often carry promotional interest rates.
see also: LIC Vs Post Office: Know Which Scheme Will Give More Returns and Security
FAQs on High-Interest FD Options in 2025
Q1. Are small finance banks safe for large FD investments?
Yes, as long as you stay within the DICGC limit of ₹5 lakh per bank, your deposit is insured. Most SFBs are well-regulated by the RBI.
Q2. Which bank is offering the highest FD interest rate currently?
As of April 2025, NorthEast Small Finance Bank is offering the highest at 9.00%.
Q3. Can I open these FDs online?
Yes, most of the banks listed above offer online FD booking through net banking or mobile apps.
Q4. Are there tax benefits on FD investments?
FD interest is fully taxable as per your income slab. But 5-year tax-saving FDs offer deductions under Section 80C.
Q5. What happens if the bank defaults?
You are covered up to ₹5 lakh per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme.
