The FD Cheat Sheet: Updated FD Interest Rates from Top Banks

“For stocks may come, and stocks may go,

But FD goes on forever!”

In India, a majority of the population lacks basic knowledge of investments. On top of that, most people think of the share market as a complex labyrinth, and therefore, are too reluctant to go into the details.

As a result, an FD (Fixed Deposit) is one of the most secure investment options available to them!

However, returns on FDs are much lower if you compare them to bonds or stocks. And this is mainly because of the fact that fixed deposits come with zero market risk.

All things aside, the Reserve Bank of India (RBI) has slashed repo rates by 50 basis points. The new repo rate for now is 5.50% instead of 6%. And this move has further resulted in banks tweaking interest rates on their FDs for both the general public as well as senior citizens.

So, let’s explore this blog and look at the revised fixed deposit interest rates that some of the top banks are offering.

Top Bank FD Rates Comparison: A Detailed Study

• SBI

SBI is one of the most eminent and largest government banks of India, operating since 1955! SBI fixed deposit interest rates vary from 3.05%- 6.60% for non-senior, and 3.55%- 7.10% for senior citizens on tenures extending from 7 days- 10 years.

SBI also offers tax saver FDs with 6.05% returns for general people, and 7.05% returns for senior depositors.

• Canara Bank

Another one of the eminent Public Sector Banks (PSB), Canara Bank, has settled for interest rates of 3.25%- 6.50% per annum on FDs for the general public, and 3.75%- 7.00% for senior citizens on tenures that range from 7 days- 10 years.

And for tax-saving FD schemes, Canara Bank offers 6.25% interest, which extends to 6.75% for senior citizens.

• Union Bank of India

The lower slab of FD interest rates offered by Union Bank of India is actually higher than SBI’s! The organization offers 3.40%- 6.60% interest on FDs, and 3.90%- 7.10% for senior citizens based on tenure extending from 7 days- 10 years.

Not just that, but if you’re planning to opt for tax-saving FD schemes, Union Bank of India can be a great option! With a yearly interest of 6.40% (6.90% for senior citizens) for tenures of 5- 10 years, Union Bank of India has set the bar high!

Note: If you’re looking for options other than regular FDs and stocks, corporate fixed deposits can be a great option to invest in!

• HDFC Bank

HDFC Bank was deemed one of the largest private sector banks in 2025. The institution offers 2.75%- 6.60% interest for general, and from 3.25%- 7.10% interest per annum for senior citizens for tenures from 7 days- 10 years.

Added to that, HDFC Bank also offers tax-saving FD schemes. With 6.40% yearly returns for the general public and 6.90% yearly returns for senior citizens for a 5-year tenure, they are offering quite a stable option for tax-efficient savings.

• ICICI Bank

ICICI Bank comes under the category of one of the top commercial banks of India. The organization offers interest rates from 2.75%- 6.60% for non-seniors, and 3.50%- 7.20% for senior citizens on tenures from 7 days- 10 years.

However, where it exceeds its competitors is in the fixed deposit interest rates for senior citizens on tax-saving schemes. Although it’s fixed at 6.60% per annum for the general public, it goes up to a whopping 7.20% for senior citizens for a tenure of 5 years.

• Axis Bank

Formerly known as UTI Bank, Axis Bank offers some great interest rates on its fixed deposit schemes. The returns range from 3.00%- 6.60% per annum for generals, and from 3.50%- 7.35% per annum for senior citizens, based on tenures from 7 days- 10 years.

As per tax-saving FD schemes are concerned, Axis Bank offers 6.60% yearly returns. But, when it comes to the best private bank FD interest rates on a tax-saving scheme for senior citizens, Axis Bank’s 7.35% yearly return for a 5-year tenure is one of the best schemes you can opt for!

Smart Strategies to Choose the Best FD Schemes in India

As of 2025, around 12 public sector banks and around 22 private sector banks are currently operating in India.

Needless to say, each one of the organizations offers fixed deposits with varied interest rates. Therefore, it can be naturally overwhelming for you to choose the best FD scheme among this ruckus!

That’s why we have gathered some of the smartest strategies that can help you pick an FD scheme that helps maximize your returns effectively-

• Check and compare the interest rates

One of the first and foremost things you should check is the rate of interest the bank is offering. Remember that interest rates vary across all public and private sector banks. So, the best way is to compare the varied interest rates using a fixed deposit interest rate calculator before finalizing your investment decision.

• Check the tenure

Another one of the crucial things you should check is the tenure. If you have short-term goals, opt for organizations offering better returns on shorter tenure. Similarly, to fulfill long-term goals, go for longer tenures, which generally offer higher interest rates.

• Check the penalties for premature withdrawals

Lastly, remember to check on the premature withdrawal policies of the concerned bank. Most banks allow a premature withdrawal, but the penalty amount varies significantly. Besides that, some banks might also offer an overdraft or loan facility against your FD.

Now, if you’re a beginner in the investment landscape and want to secure a passive income, FDs might not be the best option! So, explore these AI trading platforms that can help you identify high-profitability trades seamlessly.

The revised FD rates by Indian Banks have caused interest rates to go south by 0.50%. Still, FDs are free of the volatility and risks of investing in stocks and bonds. That’s exactly why, for the masses in India, a fixed deposit scheme still holds a gold-standard status rather than any other investment options.

Also, if you’re a finance nerd and like to educate people with such insights, we at The Business Trendz would love to have you on board! Share your write-ups with us under our write for us finance category, and if you seem fit, you’ll be joining our community soon!

F.A.Qs

Which Bank has the highest FD rate now?

As of now, Suryoday Small Finance Bank tops the charts of offering the highest interest rates on FDs, with a whopping 8% annual return.

What is the best time to invest in an FD?

The best time to invest in a fixed deposit scheme is either when the interest rates are going upwards (which is the best time to invest in short-term FDs) or when the interest rates are going south (which is the best time to lock in your investment in long-term FDs).

What is the FD rate for senior citizens?

For senior citizens, banks offer specialized interest rates on short-term as well as long-term FDs. Usually, the interest rates are 0.50% higher than the rates for the general public.

Which Bank gives 9.5% interest?

Unity Small Finance Bank is currently offering a whopping 9.5% yearly interest on FD for a tenure of 1001 days.

Are FDs better than stocks?

Well, it all depends on your perception, because both of these investment options come with their fair share of advantages and disadvantages. For instance, FDs are great if you want to play it safe and are happy with moderate returns and a low risk. On the other hand, stocks offer a much higher earning potential, but also come associated with high risk and market volatility. So, it all depends on your perception, your risk tolerance, and your financial goals.

What is the 10/5/3 rule of investment?

The 10/5/3 investment rule suggests-

• Your long-term equity investments (stocks) should offer 10% returns.
• Your debt instruments (bonds) should offer 5% returns.
• Your savings bank account should offer 3% returns.

Amilia Brown

Amilia Brown is a seasoned business writer & strategist who simplifies complex business concepts and turn them into engaging narratives. As a trusted business writer, she delivers actionable insights with precision.