Fixed Deposits (FDs) remain one of the most preferred investment options for risk-averse investors. In 2025, several Indian banks are offering attractive interest rates on 500-day Fixed Deposits, making them an excellent choice for those seeking high returns with low risk.
With interest rates surpassing 8% for some banks, this is an opportune time for investors to lock in their funds for 500 days and enjoy secure earnings. In this article, we’ll explore the best FD schemes, their interest rates, and how you can benefit from them.
High Interest Rates on 500-Day Fixed Deposits (FDs) in 2025
| Bank Name | Tenure | Interest Rate (General) | Interest Rate (Senior Citizens) |
|---|---|---|---|
| IDFC FIRST Bank | 400-500 days | 7.90% | 8.40% |
| Federal Bank | 500 days | 7.75% | 8.25% |
| RBL Bank | 500 days | 8.00% | 8.50% |
| ICICI Bank | 15 months – 2 years | 7.25% | 7.85% |
| Axis Bank | 15 months – <2 years | 7.25% | 7.75% |
A 500-day Fixed Deposit is a fantastic option in 2025 for secure, high returns without long-term commitment. Banks like RBL, IDFC FIRST, and Federal Bank offer competitive interest rates exceeding 8%, making them a great choice for both general and senior investors.
To get the best returns, compare rates, check bank credibility, and choose the FD that best aligns with your financial goals.
Why Choose a 500-Day Fixed Deposit?
A 500-day FD strikes a perfect balance between short-term liquidity and high returns. Unlike long-term FDs that lock your money for years, a 500-day tenure allows investors to earn attractive interest rates while keeping their funds relatively liquid.
Benefits of a 500-Day FD:
- Higher Returns: Some banks offer higher rates for a 500-day tenure compared to standard 1-year FDs.
- Low Risk: Unlike stocks and mutual funds, FDs provide guaranteed returns.
- Flexibility: Many banks allow premature withdrawals with minimal penalties.
- Compounding Growth: If you opt for a reinvestment FD, you earn interest on interest, increasing your returns.
see also: Get Pension-Like Income Every Month with Post Office MIS Scheme 2025
Best 500-Day FD Interest Rates in 2025
1. IDFC FIRST Bank 500-Day FD
- Interest Rate (General Public): 7.90%
- Interest Rate (Senior Citizens): 8.40%
- Minimum Deposit: ₹10,000
- Premature Withdrawal: Allowed with penalty
- Why Choose? This is one of the highest interest rates available, making it an excellent option for secure, high returns.
2. RBL Bank 500-Day FD
- Interest Rate (General Public): 8.00%
- Interest Rate (Senior Citizens): 8.50%
- Minimum Deposit: ₹5,000
- Premature Withdrawal: Allowed with a penalty
- Why Choose? RBL Bank offers an 8%+ return, which is among the best in the market.
3. Federal Bank 500-Day FD
- Interest Rate (General Public): 7.75%
- Interest Rate (Senior Citizens): 8.25%
- Minimum Deposit: ₹5,000
- Premature Withdrawal: Allowed
- Why Choose? A strong and reliable bank with consistent returns.
4. ICICI Bank 500-Day FD
- Interest Rate (General Public): 7.25%
- Interest Rate (Senior Citizens): 7.85%
- Minimum Deposit: ₹10,000
- Premature Withdrawal: Allowed
- Why Choose? One of India’s largest banks offering safe and steady returns.
5. Axis Bank 500-Day FD
- Interest Rate (General Public): 7.25%
- Interest Rate (Senior Citizens): 7.75%
- Minimum Deposit: ₹5,000
- Premature Withdrawal: Allowed with conditions
- Why Choose? Competitive rates and strong financial backing.
How to Open a 500-Day FD?
Opening a Fixed Deposit is simple and can be done online or by visiting a bank branch. Here’s a step-by-step guide:
Online Method:
- Visit the official website of the bank.
- Login to your net banking account.
- Select the Fixed Deposit (FD) option under the ‘Investments’ section.
- Choose the tenure (500 days) and enter the deposit amount.
- Verify details and proceed with the transaction.
- Download the FD receipt for future reference.
Offline Method:
- Visit the nearest bank branch.
- Fill out the FD application form with personal and financial details.
- Provide identity proof (Aadhaar, PAN card, etc.).
- Deposit the amount via cheque or cash.
- Receive your FD receipt and keep it safe.
see also: Post Office Schemes in India for 2025 Earn High Returns with Secure Investments
High Interest Rates on 500-Day FDs in 2025 FAQs
1. Which bank offers the highest interest rate for a 500-day FD?
Currently, RBL Bank offers the highest rate of 8.00% for general investors and 8.50% for senior citizens.
2. Can I withdraw my FD before 500 days?
Yes, but most banks charge a penalty of 0.5% – 1% on the interest rate for premature withdrawal.
3. Are Fixed Deposits safe?
Yes, FDs are one of the safest investment options, especially those insured up to ₹5 lakh by DICGC (Deposit Insurance and Credit Guarantee Corporation).
4. How is the interest on a 500-day FD calculated?
Banks calculate interest either on a simple or compound basis, depending on the type of FD chosen. Compound interest yields higher returns.
5. Should I invest in a 500-day FD or a longer tenure FD?
A 500-day FD is ideal for those seeking higher returns with short-term flexibility. Longer-term FDs may offer stability but not necessarily better rates.
