FD Interest Rates: These 6 Banks Offer Highest Rates on Their Fixed Deposits

FD Interest Rates: These 6 Banks Offer Highest Rates on Their Fixed Deposits

Fixed deposits (FDs) remain one of the safest and most popular investment options for individuals looking to grow their savings with minimal risk. With the evolving financial landscape, banks continuously adjust their interest rates to attract depositors. As of 2025, several banks are offering highly competitive FD interest rates, providing investors with excellent returns.

This article explores the six banks that currently offer the highest FD interest rates and the details of their deposit schemes.

1. State Bank of India (SBI)

SBI, being the largest public sector bank in India, provides competitive FD interest rates.

• General Citizens: Up to 6.75% per annum.
• Senior Citizens: Additional 0.50% interest, making it 7.25% per annum.
• Tenure: Ranges from 7 days to 10 years.
• Special Schemes: SBI offers a 400-day “Amrit Kalash” FD with an interest rate of 7.10% for general citizens and 7.60% for senior citizens.

2. HDFC Bank

HDFC Bank is one of the leading private sector banks offering attractive interest rates on fixed deposits.

• General Citizens: Up to 7.10% per annum.
• Senior Citizens: Up to 7.60% per annum.
• Tenure: 7 days to 10 years.
• Special Scheme: “Senior Citizen Care FD” offers an additional 0.25% interest for tenures above five years.

3. ICICI Bank

ICICI Bank provides competitive FD interest rates, making it a preferred choice for many investors.

• General Citizens: Up to 7.00% per annum.
• Senior Citizens: Up to 7.50% per annum.
• Tenure: 7 days to 10 years.
• Special Offer: ICICI Bank offers an extra 0.30% interest rate for senior citizens on select tenures.

4. Axis Bank

Axis Bank provides lucrative interest rates on its fixed deposit schemes.

• General Citizens: Up to 7.20% per annum.
• Senior Citizens: Up to 7.75% per annum.
• Tenure: 7 days to 10 years.
• Additional Benefits: Axis Bank offers monthly, quarterly, and yearly interest payout options.

5. Kotak Mahindra Bank

Kotak Mahindra Bank stands out with its attractive interest rates on FDs.

• General Citizens: Up to 7.25% per annum.
• Senior Citizens: Up to 7.75% per annum.
• Tenure: 7 days to 10 years.
• Special FD Scheme: Kotak offers an FD scheme with flexible liquidity options for investors.

6. Punjab National Bank (PNB)

PNB is a leading public sector bank offering competitive FD rates.

• General Citizens: Up to 7.00% per annum.
• Senior Citizens: Up to 7.60% per annum.
• Tenure: 7 days to 10 years.
• Additional Features: PNB offers auto-renewal and loan facility against FDs.

Things to Consider Before Investing in FDs

While fixed deposits are a safe investment, here are some factors to consider before making a decision:

1. Tenure Selection: Opt for a tenure that aligns with your financial goals.
2. Premature Withdrawal Penalty: Check if the bank charges penalties for early withdrawals.
3. Tax Deducted at Source (TDS): If FD interest income exceeds ?40,000 (?50,000 for senior citizens), TDS is deducted.
4. Inflation Impact: Compare FD rates with inflation to ensure real returns remain positive.
5. Special Schemes: Some banks offer limited-period higher interest rates.