- Fixed deposit
- Highest FD Rates 2025
Highest FD Rates 2025
Know the latest highest FD rate for investment in fixed deposits in India for investment periods ranging from 7 days to 10 years.
Best Fixed Deposit with Highest Interest Rates 2025
| FD Scheme | Interest Rate | Senior Citizen Rates |
|---|---|---|
| Ujjivan Small Finance Bank FD | 8.3 % | 8.8 % |
| Bandhan Bank FD | 8.05 % | 8.55 % |
| AU Small Finance Bank FD | 8 % | 8.5 % |
| IDFC First Bank FD | 7.9 % | 8.4 % |
| IndusInd Bank FD | 7.75 % | 8.25 % |
| Post Office FD | 7.5 % | 7.5 % |
| Kotak Mahindra Bank FD | 7.4 % | 7.9 % |
| IDBI Bank FD | 7.4 % | 7.9 % |
| Canara Bank FD | 7.4 % | 7.9 % |
| Union Bank of India FD | 7.3 % | 7.8 % |
| Indian Overseas Bank FD | 7.3 % | 7.8 % |
| Indian Bank FD | 7.3 % | 7.8 % |
| Bank of India FD | 7.3 % | 7.8 % |
| Bank of Baroda FD | 7.3 % | 7.8 % |
| State Bank of India FD | 7.25 % | 7.75 % |
| Punjab National Bank FD | 7.25 % | 7.75 % |
| ICICI Bank FD | 7.25 % | 7.85 % |
| HDFC Bank FD | 7.25 % | 7.75 % |
| Axis Bank FD | 7.25 % | 7.75 % |
| Fincare Small Finance Bank FD | 0 % | 0 % |
Characteristics of Fixed Deposits from Banks
- Single FD: An FD account allows only one deposit. For more investments, you need to open a new fixed deposit.
- Tenure: The tenure can be from 7 days to 10 years. You can choose the maturity in days, months, or years.
- Minimum Investment: The minimum investment amount depends on the bank or NBFC and usually varies between Rs 1,000 and Rs 5,000.
- Maximum Investment: There is no maximum limit for investment.
- Interest Rate: The interest rate is higher than the savings account rate. It is fixed and does not change after investment. Market changes do not affect the fixed rate on any FD. The highest fixed deposit (FD) rates vary from bank to bank in India.
- Interest Payout: You can opt for a regular interest payout or payout at maturity. You can choose the monthly, quarterly, half-yearly, or yearly payout.
- Lock-in Period: A fixed deposit has a lock-in period. Premature withdrawal attracts penalties.
- Loan Against FD: In an emergency, you can get a loan against a fixed deposit. The interest rate on this loan is lower than other loans. This is because the FD is collateral for the loan against the FD.
Factors that Affect the Interest Rates of Fixed Deposits
Fixed deposits are a popular and safe investment option in India. They offer guaranteed returns and are not affected by market fluctuations. However, the interest rates of fixed deposits are not fixed and can change over time. Several factors influence the interest rates of fixed deposits in India, such as
RBI policy
The Reserve Bank of India (RBI) is India’s central bank and regulates the country’s monetary policy. The RBI sets the repo rate to lend money to commercial banks. The repo rate affects the cost of funds for banks and influences the interest rates they offer on fixed deposits.
Inflation
Inflation is the general increase in the prices of goods and services over time. Inflation reduces the purchasing power of money and affects the real returns of fixed deposits. When inflation is high, fixed deposit interest rates tend to be high as well, as investors demand higher returns to compensate for the loss of value of money. When inflation is low, fixed deposit interest rates tend to be low.
Economic Condition
The country’s economic conditions also affect fixed deposit interest rates. When the economy grows, more credit and investment demand increases interest rates. When the economy slows, there is less credit and investment demand, resulting in lower interest rates.
Deposit Amount
The amount of money deposited in a fixed deposit also influences the interest rate banks offer. Generally, banks offer higher interest rates for larger deposits and lower interest rates for smaller deposits. This is because larger deposits help banks maintain their liquidity and profitability, while smaller deposits increase operational costs.
Deposit Tenure
The duration of a fixed deposit also affects the interest rate banks offer. Generally, banks offer higher interest rates for longer tenures and lower interest rates for shorter tenures. This is because longer tenures allow banks to lock in funds for a longer period and earn more interest income, while shorter tenures increase their liquidity risk and opportunity cost.