Best FD Rates Update 2025: If there’s one thing we all crave in uncertain times, it’s financial safety. And for most Indian families — especially senior citizens — that means putting savings into a Fixed Deposit (FD). It’s simple, safe, and gives you the peace of mind that your hard-earned money isn’t at risk.
But here’s the thing… not all banks offer the same returns. In 2025, some banks are quietly raising their FD interest rates, making it a great time to review where your money’s parked.
According to the latest data from BankBazaar, several leading banks are now offering interest rates between 7% and 7.5% — and yes, that’s especially good news for senior citizens.
Which Bank Offers the Best FD Rates Right Now?
Let’s break it down. Here’s how the top public and private banks compare for deposits up to ₹3 crore.
1. IndusInd Bank – Up to 7.5%
Among private lenders, IndusInd Bank is leading the race. It’s offering a 7.5% interest rate on FDs with tenures between 6 to 12 months for senior citizens. That’s one of the best short-term options right now — especially if you want liquidity along with solid returns.
2. Axis Bank – 7.35%
Axis Bank isn’t far behind. For longer-term investors, it offers 7.35% interest on deposits held between 5 to 10 years. So if you’re looking for stability over the long haul, this could be worth exploring.
3. HDFC Bank – 7.10%
India’s largest private bank, HDFC, offers 7.10% interest on FDs with a tenure of 18 to 21 months. It’s ideal for those who prefer a medium-term deposit — not too short, not too long.
4. ICICI Bank – 7.10%
Next in line, ICICI Bank provides 7.10% for FDs spanning two years and one day to ten years. That’s a wide range, giving flexibility to savers who want both short and long-term benefits.
5. Kotak Mahindra Bank – 7.10%
Kotak Mahindra Bank matches the same rate for deposits between 391 days and less than 23 months. It’s a smart pick for those who like to renew their FDs frequently based on market changes.
6. Public Sector Banks – Up to 7.10%
Even government-owned banks are staying competitive.
- Union Bank of India: 7.10%
- Bank of Baroda (BoB): 7.10%
- Punjab National Bank (PNB): 7.10%
For those who prefer the reliability of PSU banks, these are solid options to consider.
7. SBI – 7.05%
And finally, State Bank of India (SBI) — the country’s largest public sector bank — offers 7.05% per annum on 5 to 10-year fixed deposits for senior citizens. SBI’s trust factor makes it a top choice even if the rate is slightly lower.
Pro Tip: Senior Citizens, Don’t Miss These Benefits
Most banks offer an extra 0.5% interest rate for senior citizens compared to general customers. That means if a regular depositor earns 7%, a senior might get 7.5% for the same tenure.
So if your parents or grandparents haven’t renewed their old FDs yet, it’s worth checking the new FD rates for 2025 — because even a 0.25% difference can mean thousands more in interest over the years.
Why This Matters Right Now
With the RBI maintaining a cautious stance on inflation and liquidity, these 7–7.5% FD rates might not last forever. Banks revise rates often, depending on deposit inflows and lending demand.
If you’ve been waiting for a “safe but rewarding” moment to invest, this might be your window.
And remember — diversification matters. You don’t have to put all your money in one bank. Splitting deposits between short-term and long-term FDs can give you better flexibility and returns.
Frequently Asked Questions
1. Which bank is offering the highest FD interest rate in 2025?
Currently, IndusInd Bank offers the highest FD interest rate of 7.5% for senior citizens on deposits maturing between 6 and 12 months.
2. Are FD rates for senior citizens higher than regular customers?
Yes. Most banks offer 0.5% extra interest to senior citizens on fixed deposits.
3. Is it safe to invest in FDs right now?
Absolutely. Bank FDs remain one of the safest investment options, especially when spread across reputed banks within the ₹5 lakh DICGC insurance limit.