With banks frequently revising their fixed deposit (FD) interest rates, depositors are comparing returns to decide where to park their money.
Public sector banks, private banks, and small finance banks offer very different rates this year, depending on tenure and customer category.
FD Rates Across Major Banks
Here’s a snapshot of current FD rates for some of India’s top banks:
State Bank of India (SBI): 3.05% to 6.60% for regular depositors; senior citizens get 0.5% extra.
One-year FD: 6.25% (regular) / 6.75% (senior citizens).
Punjab National Bank (PNB): 3.00% to 6.60%; senior citizens up to 6.90%.
One-year FD: 6.25% / 6.75%.
HDFC Bank: 2.75% to 6.60%; seniors up to 7.10%.
One-year FD: 6.25% / 6.75%.
ICICI Bank: 2.75% to 6.60%; seniors 3.25% to 7.10%.
One-year FD: 6.25% / 6.75%.
Bank of Baroda: 3.50% to 6.60%; seniors 4.00% to 7.10%.
One-year FD: 6.25% / 6.75%.
Kotak Mahindra Bank: 2.75% to 6.70%; seniors up to 7.10%.
One-year FD: 6.25% / 6.75%.
Axis Bank: 3.00% to 6.60%; seniors up to 7.10%.
One-year FD: 6.25% / 6.75%.
Bandhan Bank: 2.95% to 7.20%; seniors up to 7.70%.
One-year FD: 7.00% / 7.50%.
DCB Bank: 3.75% to 7.20%; seniors up to 7.70%.
One-year FD: 6.90%–7.00% / 7.15%–7.50%.
Small Finance Banks Offer the Highest Returns
Small finance banks continue to offer the most attractive FD rates, often 1.5%–2% higher than large banks for similar tenures.
Unity Small Finance Bank: up to 8.60%; seniors up to 9.10%
Suryoday Small Finance Bank: up to 8.40% on 30–36 months
Utkarsh Small Finance Bank: up to 8.25% on 2–3 year deposits
Jana Small Finance Bank: up to 8.20% on medium-term deposits
With senior-citizen add-ons, effective rates can exceed 9%, making these banks highly attractive for yield-seeking investors.
Why FD Rates Differ
FD rates vary based on a bank’s credit demand, deposit requirements, and the broader interest-rate environment.
Public sector banks: moderate rates, focus on stability
Private banks: dynamic rates, adjusted frequently
Small finance banks: highest rates to attract new deposits
As rates continue to shift in 2025, it’s important for depositors to compare banks and lock in favorable rates as soon as they are available.
