Which Bank has the Highest Interest Rate for Fixed Deposit?

FD Interest Rates in 2025

Below are the best FD interest rates in India on withdrawable deposits of up to Rs. 3 crores. Check all bank interest rates for an easy comparison of rates.

*FD Interest Rates of different banks as of August 2025

Note: The rate of interest on FD mentioned in the above table is subject to change. The table does not represent any chronological order. The rates columns contain the lowest and highest interest rates for general and senior citizens..

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 Giving High Interest Rates on FD in India 

Here is a list of the best fixed deposit interest rates in India offered by PSBs for deposits of up to Rs. 3 crores:

*FD Interest Rates of different banks as of August 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. The rates columns contain the lowest and highest interest rates for general and senior citizens.

Top Private Sector Banks Giving High Interest Rates on FD

Leading Private Sector Banks in India offer the best rate of interest on FD of up to Rs. 3 crores, as mentioned in the table below:

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

Top Small Finance Banks Giving High Interest Rates on FD

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 on FD for deposits of up to Rs. 3 crores by SFBs is as follows:

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

Top NBFCs Giving High Interest Rates on FD 

Non-Banking Financial Companies (NBFCs) offer a better interest rate on FD than SCBs.

Here is a list of the best rates of interest on FD in 2025 provided by the top NBFCs in India for deposits of up to Rs. 3 crores:

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

Top Foreign Banks Giving High Interest Rates on FD 

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 August 2025.

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

The features of the banks with the best Fixed Deposit interest rates in India are listed below:

• Attracting Deposits: The ability to attract a large amount of deposits from customers. An increased interest rate will make the FD more attractive to new and existing customers to deposit their savings in the bank rather than with a competitor. 
• Capital Base: The flow of more deposits can raise the capital adequacy ratio (CAR) of a bank. A high CAR means that the bank has enough buffer to absorb possible losses and is financially strong, which builds confidence in the regulators and investors.
• Retaining Market Share: In a competitive market, a bank with a better FD rate can deny its customers the move to other financial institutions. It assists the bank in maintaining its clientele base and, in some instances, increases the market share.
• Lending Operations: The funds taken in the form of FDs are a significant source of funds to the lending operations of a bank. In providing higher interest on FDs, the bank will be able to raise the funds needed to provide loans to various purposes, including home loans, business loans, and personal loans, which are the major source of revenue to the bank.

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.