Best FD Interest Rates in India

Currently, among all bank categories, slice Small finance Bank offers the best FD rates at 9% p.a., followed by Unity Small Finance Bank, which offers fixed deposits at 8.6% p.a., followed by Suryoday Small Finance Bank, which offers fixed deposits starting at 8.4% p.a. Utkarsh Small Finance Bank and Jana Small Finance Bank also offer one of the highest FD interest rates in India at 8.25% p.a. and 8.20% p.a., respectively. Among the private sector banks, SBM Bank, Bandhan Bank, DCB Bank, CSB Bank, RBL Bank, Yes Bank, IndusInd Bank, IDFC First Bank, Karur Vysya Bank and Tamilnad Mercantile Bank offer yields exceeding 7.5% p.a. Here is the list of best FD interest rates offered by various banks and NBFCs according to their categories.

Best FD Interest Rates

Interest rates as of 26 June 2025

Fixed Deposit Rates Offered by Other Private Sector Banks

Interest rates as of 26 June 2025

Fixed Deposit Rates Offered by Other Public Sector Banks

Interest rates as of 26 June 2025

Click here to know the FD Interest Rates offered by other Public Sector Banks.

Top 10 Corporate FD Rates in India

*At Monthly Rests. Additional interest of 0.25% p.a. is applicable on all renewals where the deposit is matured.

Interest rates as of 26 June 2025

To know more about Corporate/Company Fixed Deposits, click here.

FD Interest Rates by Foreign Banks

Interest rates as of 26 June 2025

Post Office FD Interest Rates

Post office fixed deposit interest rates are effective till 30st June 2025.

Know more details about Post Office FD schemes.

Fixed Deposit Rates for Senior Citizens (Aged 60 Years & Above)

• At the time of account opening, the senior citizen must be 60 years old or older.
• Fixed deposit interest rates for senior citizens are usually about 0.50% higher than FD rates offered to other depositors.
• Most banks provide senior citizen FDs with tenure ranging from seven days to ten years.
• Loans can be taken out against a senior citizen’s FD.

Important Considerations that will Help You Invest in the Best Fixed Deposit Plan

Here is a quick guide to help you choose the best FD to invest in:

• Safety of capital: Capital protection and income certainty are the two major benefits of opening fixed deposits. While most people consider public sector and large private sector banks to be much safer, the degree of capital safety also depends on how RBI categorises other banks.

Banks categorised as scheduled banks are covered under the deposit insurance program of DICGC, an RBI subsidiary. This insurance program covers cumulative deposits of each depositor for their fixed, recurring, current and savings of up to Rs 5 lakh with each scheduled bank, in case of bank failures. Hence, depositors seeking maximum level of capital protection for their fixed deposits should enquire whether the concerned bank has been listed under the scheduled bank category.

Those opening corporate FDs should check the credit rating of NBFCs/HFCs assigned by credit rating agencies such as CRISIL, ICRA, CARE, etc. before opening their company/corporate fixed deposits. NBFCs/HFCs having higher credit ratings can be considered to be safer in terms of income certainty and principal protection than those having lower ratings.

• Interest rate: FD interest rates depend on the bank/NBFC/HFC and the tenure chosen. Currently, some small finance banks and private sector banks are offering the highest FD slab rates of 9% p.a., which is around 1% – 1.5% higher than the highest FD rates offered by the public sector banks and larger private sector banks.
• Liquidity and the time horizon of financial goals: Besides the highest FD interest rates, depositors should also consider liquidity and time horizon of their financial goals before choosing their FD tenure. This is because ignoring them can force them to close their fixed deposits prematurely in case of financial exigencies or maturity of an overlooked financial goal. Moreover, premature withdrawals of bank FDs can cost the depositors premature withdrawal penalty of up to 1% on the effective interest rate, which is usually the lower of the original booked FD interest rate or the FD interest for the period for which the FD has been into effect at the time of opening the FD.

FAQs

Q. What are the tax benefits of investing in a fixed deposit in India?

Ans. Most banks offer tax saving FDs, which have a lock-in period of 5 years and also extend tax benefit of up to 1.5 lakh u/s 80 of the IT Act, 1961 on the amount deposited. However, the interest income accrued from the tax saver fixed deposits is taxed as per the income tax slab of the depositor.

Q. Is FD a safe investment option?

Ans. Yes, an FD is a safe investment option for risk-averse investors high degree of capital protection and income certainty. Moreover, all scheduled banks are covered under the depositor insurance program of Deposit Insurance and Credit Guarantee Corporation (DICGC). This means that bank deposits of up to Rs. 5 lakh, including fixed, recurring, savings and current deposits, per depositor per bank, are insured. Investments under Post Office qualify for sovereign guarantee, i.e. the repayment of interest and principal components are guaranteed by the Government of India.

Q. What are the premature withdrawal penalty charges for FD?

Ans. Banks and NBFCs charge a penalty of 0.5% – 1% on premature withdrawals from FD accounts.

Q. Can I take a loan against FD?

Ans. Loan against FD is an important feature of fixed deposits and thus, most of the banks do offer this option to their customers. You can get a loan of up to 90% of the deposit amount (may vary as per your bank).

Q. Can I prematurely withdraw a tax saving FD?

Ans. No, the tax saving fixed deposit comes with a lock-in period of 5 years. This can be prematurely liquidated in case of the death of the FD holder/primary account holder.

Q. What is the minimum amount required to invest in a tax-saving FD?

Ans. You can start investing from Rs. 100 in a tax saving fixed deposit. However, most of the banks have kept Rs. 1,000 as the minimum deposit amount. It can go up to Rs. 1.5 lakh.

Q. When is tax at source deducted on FD interest income?

Ans. If your fixed deposit interest income exceeds Rs 40,000 in a financial year, then your provider exercises TDS. For senior citizens, this limit is Rs 50,000. This can be avoided by submitting Form 15G/H. These limits are for bank fixed deposits or time deposits only.