For decades, Fixed Deposits (FDs) have been one of the most trusted investment options in India
They offer guaranteed returns at a fixed interest rate, making them ideal for people who prefer stable and risk-free earnings.
FDs are available in banks, post offices, small finance banks (SFBs), and non-banking finance companies (NBFCs).
You can choose a tenure ranging from a few days to several years, depending on your savings goals.
Currently, most major banks in India offer interest rates between 2.75% and 7.25% per year for general customers.
For senior citizens, rates are slightly higher — 3.25% to 7.75% per year
This makes FDs one of the most preferred investment choices among Indians looking for safe and predictable income.
Interest Rates on FDs Offered by Major Banks
Let’s take a look at what some of India’s leading banks are offering on fixed deposits in 2025.
Axis Bank
Axis Bank provides FD interest rates ranging from 3.00% to 6.60% per annum on deposits up to ₹3 crore.
Senior citizens enjoy higher returns — 3.50% to 7.35%.
The investment period ranges from 7 days to 10 years.
HDFC Bank
HDFC Bank offers FDs for 7 days to 10 years, with interest rates between 2.75% and 6.60% per annum.
Senior citizens get an extra 0.50% on all tenures, making it a good choice for retirees.
ICICI Bank
ICICI Bank’s FD rates range from 2.75% to 6.60% per annum, depending on the duration.
The investment period is 7 days to 10 years, and senior citizens get additional benefits.
IDBI Bank
IDBI Bank offers attractive interest rates between 3.00% and 7.05% per annum, with tenures from 7 days to 20 years.
Senior citizens receive an extra interest rate, making it one of the few banks offering such long-term options.
State Bank of India (SBI)
SBI’s FD tenures range from 7 days to 10 years.
General customers earn between 3.05% and 6.85%, while senior citizens get 3.55% to 7.35%.
These revised rates have been effective since July 2025.
Punjab National Bank (PNB)
PNB offers interest rates between 3.00% and 6.40% for deposits up to ₹3 crore.
Senior citizens receive an additional 0.50% interest on all FDs.
Central Bank of India
The Central Bank of India provides interest rates from 3.50% to 6.75% for periods ranging between 7 days and 10 years.
Bank of Baroda
Bank of Baroda’s FD interest rates range between 3.50% and 6.50% per annum.
Senior citizens get higher interest rates, and the bank offers three FD options:
Capital Gains Account Scheme 1988
Long-Term Deposit Scheme
Short-Term Deposit Scheme
Why Fixed Deposits Are Still a Popular Choice
Even in 2025, FDs remain a top choice for Indian investors.
They offer security, steady returns, and flexibility in choosing the duration and interest payout.
While market-linked investments may promise higher returns, FDs stand out for their guaranteed income and zero risk — making them a reliable option for both regular savers and senior citizens.
