Fixed Deposit (FD) Rates 2025 - Compare Best FD Interest Rates
Compare fixed deposit interest rates from 50+ banks in India. Find the best FD rates for regular and senior citizens with our comprehensive comparison tool.
Fixed Deposits (FDs) remain one of the most popular investment options in India, offering guaranteed returns with minimal risk. As of January 2025, FD interest rates range from 6.5% to 8.5% per annum across various banks and tenures. With over ₹180 lakh crore invested in bank FDs, they continue to be the preferred choice for conservative investors seeking stable returns. Use our FD Calculator to estimate your returns instantly.
Fixed deposits offer several advantages including capital protection, predictable returns, and flexibility in tenure selection. Senior citizens enjoy an additional 0.50% interest rate across most banks. Whether you're planning for short-term goals or long-term wealth preservation, FDs provide a secure investment avenue. Compare this with other investment options like Mutual Funds or explore tax-saving options through our tax calculator.
Key Highlights (January 2025)
- • Highest FD rates: 7.30% - 8.50% for 1-2 year tenure
- • Senior citizen rates: Additional 0.50% across all banks
- • Tax-saving FDs: 5-year lock-in with Section 80C benefits up to ₹1.5 lakh
- • Premature withdrawal: Allowed with 0.5-1% penalty on interest
Maturity Details
Axis Bank
General Rate
7.3%
Senior Citizen
7.8%
- High interest rates
- Flexible payout options
HDFC Bank
General Rate
7.25%
Senior Citizen
7.75%
- Flexible tenure
- Sweep-in facility
ICICI Bank
General Rate
7.2%
Senior Citizen
7.7%
- Tax-saving FD available
- Quarterly interest payout
Kotak Mahindra Bank
General Rate
7.15%
Senior Citizen
7.65%
- Instant FD booking
- Sweep-in facility
SBI
General Rate
7.1%
Senior Citizen
7.6%
- Premature withdrawal allowed
- Loan against FD
Punjab National Bank
General Rate
7%
Senior Citizen
7.5%
- Low minimum deposit
- Senior citizen benefits
Types of Fixed Deposits
Standard fixed deposit with flexible tenure from 7 days to 10 years. Interest paid at maturity or periodically.
- • Flexible tenure options
- • Premature withdrawal allowed
- • Loan facility available
5-year lock-in period with tax deduction under Section 80C up to ₹1.5 lakh. No premature withdrawal.
- • Tax benefits under 80C
- • 5-year mandatory lock-in
- • Interest taxable as income
Special FD scheme for senior citizens (60+ years) with additional 0.50% interest rate benefit.
- • Extra 0.50% interest
- • Monthly income option
- • Higher TDS threshold
TDS Deduction: Banks deduct 10% TDS if interest income exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H if total income is below taxable limit to avoid TDS.
Tax Slab: FD interest is added to your total income and taxed as per your income tax slab. Use our Income Tax Calculator to estimate your tax liability.
Tax-Saving FD: Eligible for deduction under Section 80C, but interest earned is still taxable.
Related Resources
Frequently Asked Questions
As of January 2025, small finance banks like Ujjivan, Equitas, and AU Small Finance Bank offer the highest FD rates ranging from 8.0% to 8.5% for 1-2 year tenure. Among major banks, Axis Bank and HDFC Bank offer competitive rates around 7.25-7.30%.
Yes, FD interest is fully taxable as per your income tax slab. Banks deduct 10% TDS if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Yes, most banks allow premature withdrawal of FDs with a penalty of 0.5-1% on the interest rate. However, tax-saving FDs have a mandatory 5-year lock-in period and cannot be withdrawn prematurely.
In cumulative FD, interest is compounded and paid at maturity along with principal. In non-cumulative FD, interest is paid out periodically (monthly, quarterly, or annually) while principal remains invested.
Yes, bank FDs are one of the safest investment options. Deposits up to ₹5 lakh per bank are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation). This makes FDs virtually risk-free for amounts within the insurance limit.
The minimum tenure for FD is typically 7 days, while the maximum can go up to 10 years. However, most banks offer optimal interest rates for 1-3 year tenures. Tax-saving FDs have a fixed 5-year tenure.