Top Indian Banks Offering the Highest FD Rates in 2025
As interest rates on fixed deposits (FDs) remain a key concern for risk-averse investors in India, 2025 brings a mixed scene. While the Reserve Bank of India’s monetary policy decisions continue to influence deposit rates, several banks — especially small finance and scheduled commercial banks — are offering competitive FD rates. Here’s a breakdown of the top Indian banks that are providing some of the highest FD rates in 2025.
Why FD Rates Matter in 2025
Fixed deposit rates are closely linked to the broader interest rate environment. With inflation, repo rate movements, and economic uncertainty playing a role, many investors are looking for stable yet rewarding instruments. FDs continue to be a go-to option for people who want guaranteed returns with minimal risk.
Leading Banks with High FD Rates
- DCB Bank
According to recent reports, DCB Bank is offering 8.05% for a tenure of around 19 to 20 months, making it one of the top contenders in the FD space. Business Standard+1 - Bandhan Bank
Bandhan Bank also features among the highest FD rate providers, offering 8.05% for a 1-year deposit as per PaisaBazaar data. Business Standard - RBL Bank
RBL Bank provides rates around 8.00% for a 500-day deposit, which is quite attractive for medium-term investors. Business Standard - SBM Bank India
This bank goes up to 8.25% for specific long-ish FD tenures (above 18 months), which is among the top FD rates available. Business Standard - HDFC Bank
For those preferring large, trusted banks, HDFC Bank offers 6.60% for a tenure of about 18–21 months for regular customers and 7.10% for senior citizens. mint+1 - ICICI Bank
ICICI Bank’s FD rate is 6.60% for 2-5 year tenures for general customers, and 7.10% for senior citizens. mint - Kotak Mahindra Bank
Kotak Mahindra Bank is offering 6.60% over a tenure of 391 days to 23 months for regular customers, and 7.10% for senior citizens. mint+1 - Federal Bank
Federal Bank’s 444-day FD brings a rate of 6.85% for general investors and up to 7.35% for senior citizens. mint - Punjab National Bank (PNB)
PNB offers an FD rate of 6.70% for a 390-day tenure to regular customers, and 7.20% to senior citizens. mint - State Bank of India (SBI)
SBI remains a stable option with an FD rate of 6.45% for a 2–3 year tenure for regular customers; senior citizens get a slightly higher rate of 6.95%. mint
Public Sector Bank Highlights
Among PSU banks, Bank of Maharashtra stands out with one of the highest FD rates — 7.15% on 366-day deposits. ETBFSI.com According to Money-News data, several other public sector banks also revised their FD rates, offering attractive returns for specific tenures. Financial Express
Things to Consider Before Booking an FD
- Tenure Matters: Higher rates are generally offered for specific tenures. Always check the exact duration (e.g., 500 days, 19 months).
- Senior Citizen Benefit: Many banks give higher rates for senior citizens — even 50 bps more. mint
- Insurance Coverage: Deposits up to ₹ 5 lakh per bank are insured by DICGC, so don’t put all your capital in a single bank if you exceed this.
- Lock-in and Liquidity: Once you lock your money in an FD, early withdrawals may come with a penalty.
- Check Bank Websites: FD rates change frequently, so always verify the current rates on the bank’s official website before investing.
Final Thoughts
In 2025, for investors seeking safety with decent returns, FDs remain a powerful and reliable tool. While some small finance banks offer rates above 8%, more established banks like HDFC, ICICI, and SBI continue to provide stability and trust, albeit at slightly lower rates. By choosing the right bank and tenure, you can optimize returns while keeping risk minimal.