In today’s economic landscape, securing a steady stream of income through Fixed Deposits (FDs) remains one of the safest and most reliable investment options. Fixed deposits offer guaranteed returns over a fixed period, making them an attractive choice for both conservative and risk-averse investors. However, with multiple banks offering FD products, it's important to choose the ones with the highest interest rates to maximize your returns.
In 2025, several banks have raised the bar by offering competitive fixed deposit interest rates. This article highlights the Top 7 Banks Offering Highest Fixed Deposits Interest Rates in 2025, helping you make an informed decision and potentially earn more on your investment.
Why Choose Fixed Deposits in 2025?
Fixed Deposits (FDs) are considered low-risk financial instruments that offer a fixed rate of return over a predetermined tenure. With global markets constantly fluctuating and economic conditions being unpredictable, FDs provide a sense of security, especially for those looking for guaranteed returns. In 2025, despite low-risk options, banks are providing higher returns to attract customers.
Choosing a bank with the best FD rates ensures that you can grow your savings securely without worrying about market volatility. Higher interest rates mean more earnings over time, especially for long-term deposits.
Top 7 Banks Offering Highest Fixed Deposits Interest Rates in 2025
1. HDFC Bank – 7% for Regular Citizens, 7.5% for Senior Citizens
HDFC Bank continues to be a leader in fixed deposit offerings. For 2025, they are providing an attractive 7% interest rate for regular citizens and 7.5% for senior citizens on five-year FDs. This makes HDFC Bank a strong contender for those looking to park their money in a safe and reliable place.
With HDFC Bank, customers can enjoy the benefit of high liquidity options, the ability to avail of loans against FDs, and the comfort of dealing with one of India’s most trusted financial institutions.
Also Read :
HDFC Bank Personal Loan Eligibility Criteria
2. ICICI Bank – 7% for Regular Citizens, 7.5% for Senior Citizens
Matching HDFC Bank, ICICI Bank offers an identical interest rate of 7% for regular citizens and 7.5% for senior citizens. Known for its robust digital platforms and excellent customer service, ICICI is a great choice for those looking to earn higher interest with the flexibility of managing their FD online.
Also Read :
- ICICI Bank Personal Loan Eligibility Criteria
- ICICI Bank Unsecured Business Loan Eligibility Criteria
3. Axis Bank – 7% for Regular Citizens, 7.75% for Senior Citizens
If you're looking for an FD offering slightly higher returns, Axis Bank might be the right choice. Regular citizens can earn a 7% return, but what sets Axis apart is its offering of a 7.75% interest rate for senior citizens. This is one of the highest FD rates in the market, making Axis Bank a favorable choice for older investors looking to maximize their savings.
Also read:
Axis Bank Personal Loan Eligibility Criteria
4. Yes Bank – 7.25% for Regular Citizens, 8% for Senior Citizens
For investors looking for one of the most attractive rates in the market, Yes Bank is an excellent choice. The bank offers 7.25% for regular citizens and a remarkable 8% for senior citizens. Yes Bank’s commitment to offering competitive rates on fixed deposits makes it a popular choice for long-term investors seeking growth.
5. State Bank of India (SBI) – 6.5% for Regular Citizens, 7.5% for Senior Citizens
As India’s largest public sector bank, SBI offers a reliable option for FD investments. In 2025, SBI offers a fixed deposit interest rate of 6.5% for regular citizens and 7.5% for senior citizens on five-year deposits. While the rates are a little lower compared to some private banks, SBI’s vast network, trust factor, and stability make it a top choice for conservative investors.
6. Punjab National Bank (PNB) – 6.5% for Regular Citizens, 7% for Senior Citizens
PNB offers competitive FD rates, providing 6.5% interest for regular citizens and 7% for senior citizens. Although slightly lower than some other banks, PNB’s fixed deposit offerings are trusted by millions due to the bank's long-standing presence in the Indian banking sector.
7. Bank of Baroda – 6.8% for Regular Citizens, 7.4% for Senior Citizens
Bank of Baroda rounds out our list with competitive FD interest rates of 6.8% for regular citizens and 7.4% for senior citizens. While its rates are not the highest, Bank of Baroda offers good flexibility in terms of FD tenures and an easy online FD opening process.
How to Choose the Right Fixed Deposit for You
When deciding on a fixed deposit, here are a few things you should keep in mind:
- Interest Rate: Higher interest rates will yield better returns. Always compare FD rates across banks before making your decision.
- Bank Stability: Choose a bank that is well-established and has a solid financial track record.
- Tenure Flexibility: Ensure the bank offers flexibility in terms of FD tenure and withdrawal options.
- Premature Withdrawal and Loan Facility: Check for any penalties for early withdrawal and whether you can take a loan against your FD.
- Senior Citizen Benefits: Many banks offer higher interest rates for senior citizens, so if you’re over 60, it’s worth looking into these options.
In 2025, there are several banks offering competitive fixed deposit interest rates that can help grow your savings safely and securely. Whether you’re a regular citizen or a senior, the banks mentioned above provide attractive options to maximize returns on your hard-earned money.
Choosing the right fixed deposit depends on factors like interest rates, bank reputation, and flexibility. Always ensure you compare FD rates across banks, and consider your investment horizon before locking your money into a fixed deposit.
By making an informed choice, you can make the most of your fixed deposit investment and enjoy guaranteed returns, regardless of market fluctuations.
FAQs
1. What is a Fixed Deposit (FD) and how does it work?
A Fixed Deposit (FD) is a type of investment where you deposit a lump sum amount with a bank or financial institution for a fixed tenure at an agreed interest rate. The interest is either paid periodically or compounded. At maturity, the initial principal along with the accumulated interest is returned.
2. What are the benefits of investing in Fixed Deposits?
FDs offer guaranteed returns, security of principal, and relatively low risk compared to other investment options like stocks. They are also an excellent option for conservative investors or those who want a predictable stream of income.
3. How do I choose the right bank for a Fixed Deposit?
When choosing a bank for an FD, consider factors such as the interest rate offered, bank stability, tenure options, liquidity, penalties for premature withdrawal, and additional facilities like loans against FDs.
4. Which bank offers the highest FD rates for senior citizens in 2025?
In 2025, Yes Bank offers the highest FD rate of 8% for senior citizens, making it an attractive choice for older investors looking to maximize their returns.
5. Can I withdraw my Fixed Deposit before the maturity date?
Yes, most banks allow premature withdrawal of FDs, but it comes with a penalty. The penalty often results in a reduction in the interest rate, which could be lower than the original rate.
6. Are the interest rates on Fixed Deposits fixed throughout the tenure?
Yes, the interest rates on Fixed Deposits are generally fixed for the entire tenure. However, banks may offer different rates for different tenures, and rates can be revised periodically by the bank.
7. What happens if I don’t withdraw my FD after it matures?
If you do not withdraw your FD after maturity, the bank may automatically renew the FD for the same tenure at the prevailing interest rate unless you specify otherwise. It’s important to check with the bank if they offer auto-renewal and ensure your consent.
8. Can I get a loan against my Fixed Deposit?
Yes, many banks offer loans against Fixed Deposits at lower interest rates. The loan amount is typically a percentage of the FD value (usually up to 90%) and can be utilized as required. The interest on the loan is generally lower compared to unsecured loans.
9. What are tax implications on FD interest?
The interest earned on Fixed Deposits is subject to tax. It is taxed as per your income tax slab, and TDS (Tax Deducted at Source) is deducted if the interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can also opt for tax-saving FDs that come with a 5-year lock-in period under Section 80C of the Income Tax Act.
10. Are Fixed Deposit interest rates expected to rise in 2025?
Interest rates on Fixed Deposits depend on the Reserve Bank of India’s (RBI) monetary policy and market conditions. While they have been steady in recent years, changes in the economic environment or RBI policy could result in higher or lower FD rates in 2025.