Which Bank Has the Highest FD Interest Rates?

FD Interest Rates in 2025

The highest FD interest rates in India are for callable deposits of up to Rs. 3 crores. Check the FD interest rates table offered by different banks for an easy comparison.

Top 15 Banks Offering High FD Rates in India 

Following table shows you the highest FD rates offered by Indian Banks for general and senior citizens. 

Note: The rate of interest on FD mentioned in the above table is subject to change.
*FD Interest Rates of different banks as of September 2025
*The table is in chronological order, from highest to lowest.

List of Different Types of Banks Offering High Interest Rates in India

Fixed Deposit Schemes offer various rates of interest on FDs based on different factors. Let’s take a look at a breakdown of these rates, including the maximum interest rate on an FD from different banks.

The FD interest rates in India offered by different types of banks / NBFCs are categorised as follows:

• Public Sector Bank FD Rates
• Private Sector Bank FD Rates
• Small Finance Bank FD Rates
• Non-Banking Financial Company (NBFC) FD Rates
• Foreign Bank FD Rates

Top Public Sector Banks FD Rates 2025

Here are the top Public sector banks in India with the highest FD interest Rates in 2025 for deposits of up to Rs. 3 crores:

*FD Interest Rates of different banks as of September 2025
Note: The interest rate on FD for the particular banks mentioned in the above table is subject to change, including revisions in the maximum interest rate on FD offered by the bank.

Latest FD Interest Rates By Top Private Sector Banks 2025

The top Private Sector Banks in India with their highest best FD rates on up to Rs. 3 crores for general and senior citizens are mentioned in the following table: 

*Private Banks FD Rate of Interest is effective as of September 2025.

Current FD Interest Rates By Small Finance Banks (SFBs)

The Small Finance Banks (SFBs) registered under the Companies Act, 2013, offer high FD rates of interest to give financial support to the weaker sections of the economy.

The list of best rates of interest by Small Finance Bank on FD for deposits of up to Rs. 3 crores:

*FD Rate of Interest is effective as of September 2025 .

Current FD Interest Rates By Non-Banking Financial Companies (NBFCs)

Non-Banking Financial Companies (NBFCs) offer higher FD interest rates than small finance banks. Here is a table of the highest rate slab for general and senior citizens for deposits of up to Rs. 3 crores:

*FD Rate of Interest is effective as of September 2025 .
Note: The Fixed Deposit interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

Latest FD Rates By Foreign Banks 2025

The list of foreign banks offering the best FD rates in India on deposits of up to Rs. 3 crores is as follows:

*FD Rate of Interest is effective as of September 2025 .

Best Post Office FD Interest Rates 2025

The latest FD interest rates by the India Post for the general and senior citizens, with additional interest rates applicable to the senior citizens according to the interest rate slab:

*Post Office FD Interest Rates w.e.f September 2025

Benefits of Investing In Fixed Deposits 

Fixed Deposit (FD) is the conventional and most popular method of saving money and is preferred by customers who do not place high value on returns but on security and stability. The most important advantages of investing in FDs are:

• Guaranteed and Assured Returns: Contrary to investment in the stock market or mutual funds, where the interest rate is liable to market changes, FDs have a fixed and predetermined rate of interest. This makes sure that you are assured of your returns, and are aware of the value that your investment will be worth on maturity.
• Capital Security: The investment you make in a bank FD in terms of principal is insured. The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits by amounts of up to 5 lakh per depositor per bank and therefore offers some form of security even in the event of a bank crisis.
• Flexibility in Tenure: FDs are offered with wide tenure, ranging from as short as 7 days to as long as 10 years. This enables you to match up your investment with your own financial objectives, either in the short run or the long run.
• Tax Benefits: Some FDs, referred to as tax-saving FDs, will be eligible for a tax deduction of up to 1.5 lakh under Section 80C of the Income Tax Act. This will assist in saving on your taxable income.
• Liquidity and Access to Funds: Although the term of FDs remains constant, the access to funds is a degree of liquidity. You have the option, in case of a financial crisis, to choose premature withdrawal, although it can attract a penalty. Another option is to have your FD act as a security to take out a loan or an overdraft and get access to the money without having to violate your deposit and incur interest.

Documents Required To Open a Fixed Deposit Account

Here is the list of must-have documents for opening a Fixed Deposit Account with the best FD rate of interest in India:

1. Proof of Identity: 

   • Aadhaar card
   • PAN card
   • Driving license
   • Voter ID card
   • Government ID card

2. Address proof: 

   • Passport
   • Electricity bill
   • Utility bills
   • Photo Ration Card

3. Savings Account Details to Link with FD Account: 

   • Bank Statement
   • Cancelled cheque

Key Features of the Banks Offering High FD Interest Rates

When choosing a Fixed Deposit, investors often prefer leading public and private sector banks. Here are the key features that make them stand out:

• Trusted by Investors: Established banks with strong track records inspire confidence, making them a safe choice for parking hard-earned savings.
• Attractive Interest Rates: By offering higher FD rates, these banks encourage customers to grow their wealth while ensuring steady inflows of deposits.
• Strong Financial Base: A robust capital adequacy ratio (CAR) ensures that these banks remain financially sound, capable of managing risks and meeting regulatory standards.
• Customer Retention & Market Leadership: Competitive FD rates help these banks retain loyal customers while expanding their market share in a crowded financial services industry.
• Support for Lending: Funds raised through FDs strengthen the banks’ ability to offer loans for homes, businesses, and personal needs. This helps the banks create a sustainable cycle of growth for both banks and depositors.

Wrapping up

Small finance banks and NBFCs usually offer higher interest rates than the public and private banks. This is due to multiple factors like business strategy, competitive pressure, and regulatory mandate. Among leading banks, HDFC, ICICI, and Kotak offer some of the highest rates with several benefits and features. The interest rate is not the only factor to consider when selecting an FD; you should also consider the stability of the bank and the tenure that pays the highest interest rate, because it differs across banks.