BUSINESS
Best FD Interest Rates 2025: These Banks Are Offering the Highest Returns on Fixed Deposits
If you’re looking for a secure investment option that guarantees steady returns, Fixed Deposits (FDs) remain one of the most preferred choices among Indian investors. Recently, several major banks have revised their FD interest rates, offering attractive returns—especially on one-year deposits. Here’s a look at where you can earn the best returns right now.
HDFC Bank
India’s largest private sector bank offers 6.25% interest on one-year FDs for general customers and 6.75% for senior citizens. For longer tenures, the rates are slightly higher.
ICICI Bank
ICICI Bank also offers 6.25% (general) and 6.75% (senior citizens) for one-year FDs. For deposits with a two-year tenure or more, the rates can go up to 6.60% and 7.10%, respectively.
Kotak Mahindra Bank
Kotak offers 6.25% to general depositors and 6.75% to seniors for one-year FDs. The highest interest rates are available for tenures between 391 days and 23 months.
Federal Bank
Federal Bank provides 6.25% (general) and 6.75% (senior citizens) for one-year FDs. However, a 999-day FD offers even higher returns of 6.70%.
State Bank of India (SBI)
SBI, the country’s largest public sector bank, offers 6.25% for general citizens and 6.75% for senior citizens on one-year FDs. For FDs with a tenure of two to three years, the rates go up to 6.45% and 6.95%, respectively.
Union Bank of India
Union Bank stands out slightly ahead, offering 6.40% for general depositors and 6.90% for senior citizens. On three-year FDs, these rates rise to 6.60% and 7.10%.
Canara Bank
Canara Bank’s one-year FD rate is 6.25% (general) and 6.75% (senior citizens). Its 444-day FD scheme is particularly popular, providing higher returns of 6.50% and 7%.
Punjab National Bank (PNB)
PNB offers 6.25% (general) and 6.75% (senior citizens) on one-year FDs. A 390-day FD can fetch up to 7.10% interest.
FD Interest Rates at a Glance (One-Year Tenure)
| Bank Name | General Citizens (%) | Senior Citizens (%) |
|---|---|---|
| HDFC Bank | 6.25 | 6.75 |
| ICICI Bank | 6.25 | 6.75 |
| Kotak Mahindra Bank | 6.25 | 6.75 |
| Federal Bank | 6.25 | 6.75 |
| Union Bank of India | 6.40 | 6.90 |
| SBI | 6.25 | 6.75 |
| Canara Bank | 6.25 | 6.75 |
| Punjab National Bank | 6.25 | 6.75 |
Key Points to Remember Before Investing
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Don’t just compare interest rates—consider your investment period, tax implications, and liquidity needs.
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Senior citizens usually get an additional 0.50% interest across most banks.
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Many banks offer an extra 0.10% interest for online FD bookings.
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For higher returns, explore special-tenure FDs like 390, 444, or 999 days, which often come with promotional rates.
