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Which Bank Has the Highest FD Interest Rates?
The highest interest rate on an FD ranges up to 8.50% for general citizens and up to 8.75% for senior citizens. Small Finance and NBFCs offer the highest interest rate on FD. After this, many major public and private sector banks also offer one of the highest FD interest rates. Let us compare the FD rates offered by these banks to invest into the best FD plan.
Returns as high
as 6.9%*
Includes life cover
Completely Tax free+
as 6.9%*
Includes life cover
Completely Tax free+
Maximum returns Offered by
Guaranteed
Highest
6.9%*
Guaranteed Plan
(by insurance companies)
(10 Years)
6.5%**
Fixed Deposits
(by SBI bank)
(5-10 Years)
6.9%***
Public Provident Fund
(other popular options)
(15 Years)
Get Guaranteed returns upto 6.9%*
Fully Tax-Free, Life Cover Included
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FD Interest Rates
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Articles - FD Rates
- Which Bank has the Highest Interest Rate for Fixed Deposit
Top 20 Banks Offering High FD Rates in India
The top 20 banks that offer the highest FD rates in India for amounts below ₹3 crore are:
| Name of the Bank | General citizens (% p.a.) | Senior citizens (% p.a.) |
| Suryoday Small Finance Bank Interest Rates | 8.05 | 8.10 |
| Jana Small Finance Bank Interest Rates | 8.00 | 8.00 |
| Slice Small Finance Bank Interest Rates | 7.75 | 7.75 |
| Utkarsh Small Finance Bank Interest Rates | 7.65 | 8.15 |
| ESAF Small Finance Bank Interest Rates | 7.6 | 8.10 |
| Ujjivan Small Finance Bank Interest Rates | 7.45 | 7.95 |
| Equitas Small Finance Bank Interest Rates | 7.4 | 7.9 |
| Shivalik Small Finance Bank Interest Rates | 7.3 | 7.8 |
| Bandhan Bank Interest Rates | 7.2 | 7.7 |
| DCB Bank Interest Rates | 7.2 | 7.45 |
| RBL Bank Interest Rates | 7.2 | 7.7 |
| Capital Small Finance Bank Interest Rates | 7.15 | 7.65 |
| SBM Bank Interest Rates | 7.1 | 7.6 |
| AU Small Finance Bank Interest Rates | 7.1 | 7.6 |
| Central Bank of India Interest Rates | 6.75 | 7.25 |
| YES Bank Interest Rates | 7 | 7.50 |
| Induslnd Bank Interest Rates | 7 | 7.5 |
| Unity Small Finance Bank Interest Rates | 6.75 | 7.25 |
| Federal Bank Interest Rates | 6.7 | 7.2 |
| Bank of India Interest Rates | 6.6 | 7.1 |
*Fixed deposit rates as of October 24, 2025. North East Small Finance Bank has been renamed to Slice Small Finance Bank.
Top Public Sector Banks FD Rates 2025
The top public sector banks offering the highest FD rates for amounts below ₹3 crore are:
| Name of the Bank | General Citizens (% p.a.) | Senior Citizens (% p.a.) |
| Bank of Baroda Interest Rates | 6.6 | 7.1 |
| Bank of India Interest Rates | 6.6 | 7.1 |
| Bank of Maharashtra Interest Rates | 6.2 | 6.7 |
| Canara Bank Interest Rates | 6.5 | 7 |
| Indian Bank Interest Rates | 6.7 | 7.2 |
| Indian Overseas Bank Interest Rates | 6.7 | 7.2 |
| Punjab & Sind Bank Interest Rates | 6.6 | 7.1 |
| Punjab National Bank Interest Rates | 6.6 | 7.1 |
| State Bank of India Interest Rates | 6.45 | 6.95 |
| UCO Bank Interest Rates | 6.45 | 6.6 |
| Union Bank of India Interest Rates | 6.6 | 7.1 |
*Fixed deposit rates as of October 24, 2025.
Information About
Guaranteed Return Plans
Returns Before Tax
6.9%* (TAX-FREE)
Returns After Tax
6.9%*
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
*For annual premium upto ₹5 Lacs
Latest FD Interest Rates By Top Private Sector Banks 2025
The top private sector banks offering the highest FD rates for amounts below ₹3 crore are:
| Name of the Bank | Highest Interest Rates for General Citizens (%p.a.) | Highest Interest Rates for Senior Citizens (%p.a.) |
| Axis Bank Interest Rates | 6.6 | 7.1 |
| HDFC Bank Interest Rates | 6.6 | 7.1 |
| ICICI Bank Interest Rates | 6.6 | 7.1 |
| Yes Bank Interest Rates | 7 | 7.50 |
| IDFC FIRST Bank Interest Rates | 7 | 7.5 |
| City Union Bank Interest Rates | 6.75 | 7 |
| CSB Bank Interest Rates | 7 | 7.3 |
| Dhanlaxmi Bank Interest Rates | 6.8 | 7.3 |
| IDBI Bank Interest Rates | 6.55 | 7.05 |
| DBS Bank Interest Rates | 6.55 | 7.05 |
| Jammu & Kashmir Bank Interest Rates | 7.05 | 7.55 |
| Karnataka Bank Interest Rates | 6.65 | 6.9 |
| Karur Vysya Bank Interest Rates | 6.8 | 7.2 |
| Kotak Mahindra Bank Interest Rates | 6.6 | 7.1 |
| Nainital Bank Interest Rates | 7.05 | 7.55 |
| South Indian Bank Interest Rates | 6.6 | 7.1 |
| Tamilnad Mercantile Bank Interest Rates | 6.9 | 7.4 |
*Fixed deposit rates as of October 24, 2025.
FD Interest Rates – Tax Saving FDs
Top tax-saving FD interest rates among various banks in India are:
| Name of the Bank | General Citizens (%p.a.) | Senior Citizens (%p.a.) |
| Suryoday Small Finance Bank Interest Rates | 8.20 | 8.40 |
| AU Small Finance Bank Interest Rates | 6.75 | 7.25 |
| Punjab & Sind Bank Interest Rates | 6.10 | 6.60 |
| Axis Bank Interest Rates | 6.60 | 7.35 |
| Bandhan Bank Interest Rates | 6.25 | 7.25 |
| IDBI Bank Interest Rates | 6.35 | 6.85 |
| Bank of Baroda Interest Rates | 6.00 | 7.00 |
| State Bank of India Interest Rates | 6.05 | 7.05 |
| Bank of Maharashtra Interest Rates | 6.10 | 6.60 |
| Capital Small Finance Bank Limited Interest Rates | 6.90 | 7.40 |
| Central Bank of India Interest Rates | 6.25 | 6.75 |
| Canara Bank Interest Rates | 6.25 | 6.75 |
| Kotak Mahindra Bank Interest Rates | 6.25 | 6.75 |
| DCB Bank Interest Rates | 7.00 | 7.25 |
| Federal Bank Interest Rates | 6.50 | 7.00 |
| HDFC Bank Interest Rates | 6.40 | 6.90 |
| IndusInd Bank Interest Rates | 6.65 | 7.40 |
| ICICI Bank Interest Rates | 6.60 | 7.10 |
| IDFC FIRST Bank Interest Rates | 6.60 | 7.10 |
| Indian Bank Interest Rates | 6.00 | 6.50 |
| Indian Overseas Bank Interest Rates | 6.20 | 6.70 |
| Jammu & Kashmir Bank Interest Rates | 6.50 | 7.00 |
| Jana Small Finance Bank Interest Rates | 8.00 | 8.00 |
| Karnataka Bank Interest Rates | 6.50 | 6.90 |
| Karur Vysya Bank Interest Rates | 6.55 | 6.95 |
| RBL Bank Interest Rates | 6.70 | 7.20 |
| Bank of India Interest Rates | 6.00 | 6.75 |
| SBM Bank India Interest Rates | 7.00 | 7.50 |
| Shivalik Small Finance Bank Limited Interest Rates | 6.50 | 7.00 |
| South Indian Bank Interest Rates | 5.70 | 6.20 |
| UCO Bank Interest Rates | 6.10 | 6.60 |
| Ujjivan Small Finance Bank Interest Rates | 7.20 | 7.70 |
| Union Bank of India Interest Rates | 6.40 | 6.90 |
| Utkarsh Small Finance Bank Interest Rates | 7.25 | 7.75 |
*Fixed deposit rates as of October 24, 2025.
Post Office FD Interest Rates
The best post office FD interest rates are:
| Tenure | Rate of Interest (%p.a.) |
| 1 year | 6.9 |
| 2 years | 7 |
| 3 years | 7.1 |
| 5 years | 7.5 |
*Fixed deposit rates as of October 24, 2025.
FD Interest Rates for Non-Banking Financial Companies (NBFCs)
The current FD interest rates by Non-Banking Financial Companies (NBFCs) are:
| Name of the Company | General Citizens Interest Rate (% p.a.) | Senior Citizens Interest Rate (% p.a.) |
| Sundaram Home Finance | 7.15 | 7.50 |
| Shriram Finance | 7.60 | 8.10 |
| Muthoot Capital Services Limited | 8.50 | 8.75 |
| LIC Housing Finance Ltd. | 6.90 | 7.15 |
| Kerala Transport Development Finance Corporation | 6.75 | 7 |
| Manipal Housing Finance Syndicate Ltd. | 7.75 | 8 |
| Mahindra Finance | 7 | 7.1 |
| PNB Housing Finance Ltd. | 7.1 | 7.3 |
| ICICI Home Finance | 7 | 7.35 |
*Fixed deposit rates as of October 24, 2025.
FD Interest Rates for Leading Foreign Banks
The list of foreign banks offering the best FD rates in India on deposits generally up to ₹3 crore are:
| List of Foreign Bank FDs | General Citizens (% p.a.) | Senior Citizens (%p.a.) |
| Deutsche Bank Interest Rates | 7.00% | 7.50% |
| HSBC Bank Interest Rates | 5.50% | 6.00% |
| Standard Chartered Bank Interest Rates | 6.60% | 7.10% |
Why Invest in Fixed Deposits (FDs)?
A fixed deposit is a safe and dependable savings option with several key features:
- Safe investment option: Your principal amount is locked in a bank or NBFC and returns are predetermined, offering security of funds.
- Extra interest rates for senior citizens: Many institutions provide higher interest for senior citizens, helping them earn more.
- Guaranteed returns: Unlike market-linked investments, FD returns are fixed and assured at the time of deposit.
- Preserving savings and growing them: FDs help safeguard your savings while earning interest, balancing safety and growth.
- Flexible tenure: You can choose the duration; from short-term to long-term, based on your financial goals.
- Higher interest rates: Specifically in small finance banks and NBFCs you often find the highest interest rate on FD for general and senior citizens.
How to Open a Fixed Deposit Account?
An FD account can be opened in either a traditional way or digitally. Overall it includes:
Step 1: Reach out to the bank.
Step 2: Obtain and fill the FD form.
Step 3: Submit the form along with the appropriate KYC documents.
Step 4: Make the payment.Step 5: Once verified, the FD account will be opened.
Eligibility to Open a Fixed Deposit Account
To open a Fixed Deposit (FD) account, the following categories are eligible:
- Resident Individuals
- Hindu Undivided Families (HUFs)
- Sole Proprietorship Firms
- Partnership Firms
- Limited Companies
- Trust Accounts
- Other eligible entities as per bank policies
Documents Required to Open Fixed Deposits
The general documents required to open an FD account include:
- Aadhaar Card
- PAN Card
- Driver’s License
- Passport
- Recent coloured passport-sized photographs
- KYC (Know Your Customer) verification documents as mandated by the bank
Conclusion
As the comparisons above show, small finance banks and NBFCs offer higher FD rates than larger public and private sector banks. This is due to 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. Most banks offer fixed-tenure special deposits with higher interest rates. Interest rate is, however, 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.
FAQs
-
Which bank gives the highest interest rate on FD?
Many small finance banks and NBFCs currently offer the highest interest rate on FD, up to 8.50% for general citizens and around 8.75% for senior citizens. -
Do all banks offering high FD rates also give compound interest on FD?
Many banks allow interest on FDs to be compounded quarterly or annually; you should check with the bank for their specific compounding frequency and whether it applies to the scheme you choose. -
How do the top banks' highest FD interest rates for general citizens and senior citizens compare?
In small finance banks and NBFCs you’ll find ~8%+ for general citizens and sometimes ~8.10% -- 8.75% for senior citizens; in public and major private banks the rates are nearer to the mid-6% to 7% range. -
What should I check before investing in an FD to ensure I am getting the best deal from banks giving the highest interest rates on FD?
Check the rate-sheet (for general & senior citizens), compounding frequency, premature withdrawal terms, whether the rate is for a specific tenure, whether there are any bonus or special conditions, and ensure you go through the full terms & conditions.
* Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy male of 18 years old paying Rs. 20,000/- monthly (exclusive of all applicable taxes)
** Fixed deposit rate applicable for 5 year's 1 day to 10 years for investment amount less< 2 Crore ( Not for senior citizens)
*** PPF interest rate applicable for 15 years for investment amount upto 1.5 Lac
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
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