Top FD Interest Rates 2025
Tax planning is crucial for financial management, focusing on reducing tax obligations and boosting savings. With the 1st-Mar’25, deadline approaching. people should explore tax-saving investments to increase disposable income.
In Short:
- Fixed Deposits
- Benefits to Senior Citizens
- Duration wise Banks Interest Rates
- Fixed Deposit Withdrawal Choices
- Essential factors to consider prior to investing
Top FD Interest Rates 2025
A fixed deposit is an investment option that offers better returns with tax benefits compared to standard savings accounts from banks and non-banking financial institutions.
In India, fixed deposit interest rates vary among banks based on the deposit amount, duration and investor’s age.
Private banks typically provide better rates for short-term deposits where as public banks are more competitive for longer terms, especially for senior citizens.
Benefits to Senior Citizens
Senior citizens over 60 years receive an additional 0.5% interest on fixed deposits, enhancing returns to meet their fixed income requirements.
An average 7% FD would yield them 7.5%.
Top FD Interest Rates 2025 | Duration wise Banks Interest Rates
(i): Private Banks
| Top FD Interest Rates 2025 | Private Banks | |||||
| S.No. | Bank | Custom Range | 1 Year | 3 Years | 5 Years |
| 1 | DCB Bank | 19 to 20 Months: 8.05% | 7.10% | 7.55% | 7.40% |
| 2 | IndusInd Bank | >17 Months and < 18 Months: 7.99% | 7.75% | 7.25% | 7.25% |
| 3 | YES Bank | 18 Month to < 24 Months: 7.75% | 7.25% | 7.25% | 7.25% |
| 4 | RBL Bank | 500 Days: 8% | 7.50% | 7.50% | 7.10% |
| 5 | Axis Bank | > 15 Months and < 2 Years : 7.25% | 6.70% | 7.10% | 7.00% |
| 6 | ICICI Bank | > 15 Months and < 2 Years : 7.25% | 6.70% | 7.00% | 7.00% |
| 7 | HDFC Bank | 55 Months: 7.40% | 6.60% | 7.00% | 7.00% |
| 8 | IDFC First Bank | 400 to 500 days: 7.90% | 6.50% | 6.80% | 6.75% |
| 9 | City Union Bank | 333 Days : 7.50% | 7.00% | 6.50% | 6.25% |
| 10 | Kotak Mahindra Bank | 390 days to <23 Months: 7.40% | 7.10% | 7.00% | 6.20% |
(ii). Pubic Banks
| Top FD Interest Rates 2025 | Public Banks | |||||
| S.No. | Bank | Custom Range | 1 Year | 3 Years | 5 Years |
| 1 | BOB | 400 Days: 7.30% | 6.85% | 7.15% | 6.80% |
| 2 | Central Bank of India | >1111 Days and < 3333 Days: 7.50% | 6.85% | 7.00% | 6.75% |
| 3 | Canara Bank | 3 Years to < 5 Years: 7.40% | 6.85% | 7.40% | 6.70% |
| 4 | Bank of Maharashtra | 366 Days: 7.45% | 6.75% | 6.50% | 6.50% |
| 5 | Indian Overseas Bank | 400 Days: 7.30% | 7.10% | 6.50% | 6.50% |
| 6 | Punjab National Bank | 400 Days: 7.25% | 6.80% | 7.00% | 6.50% |
| 7 | State Bank of India | 444 Days : 7.25% | 6.80% | 6.75% | 6.50% |
| 8 | Union Bank of India | 456 Days: 7.30% | 6.80% | 6.70% | 6.50% |
| 9 | Indian Bank | 400 Days:7.30% | 6.10% | 6.25% | 6.25% |
| 10 | BOI | 400 Days: 7.30% | 6.80% | 6.50% | 6.00% |
| 11 | Punjab & Sind Bank | 555 Days: 7.45% | 6.30% | 6.00% | 6.00% |
Fixed Deposit Withdrawal Choices
Effect on Returns
Fixed deposits can generally be divided into two categories
(i). With early withdrawal options: Early withdrawal FDs allow access before maturity at reduced interest rates.
(ii). Excluding early withdrawal choices: Locked assets yield better rates, ensuring funding stability for banks .
Essential factors to consider prior to investing
(i). Lock-in duration: Align the FD term with your financial objectives.
(ii). Fluctuations in interest rates: Analyze rates from different banks to optimize returns .
(iii). Fees or Charges: Confirm if there are charges for early withdrawals if flexibility is important .
In a nutshell Fixed deposits provide security and assured returns, investors must assess duration, adaptability, and interest rates before investing and selecting alternatives.
More on Fixed Deposit Interest Rates: Private and Pubic Banks
