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Top Banks Fixed Deposits in India


Last Updated: 27th January 2025 - 03:59 pm
What is Fixed Deposit
Fixed deposits are a risk-free investment choice that offer income tax deductions, several interest payment choices, special interest rates for elderly people, no market risk, & a stable interest rate.
It is crucial to assess the most recent fixed deposit rates provided by the main banks in the nation before opening a new FD or renewing an existing one. The most recent fixed deposit rates for 2025 are listed below.
Top Banks FD Interest Rates 2025
FD Scheme | All Bank FD Interest Rates 2025 |
IDBI Bank Tax Saving FD | 6.10% - 6.85% |
PNB Tax Saving FD | 5.80% - 6.30% |
IDFC First Bank Tax Saving FD | 6.50% |
Axis Bank Tax Saving FD | 6.10% - 6.85% |
HDFC Bank Tax Saving FD | 6.10% - 6.60% |
IndusInd Bank Tax Saver Scheme | 6.75% - 7.50% |
SBI Bank Tax Saving FD | 6.10% - 6.60% |
RBL Bank Tax Saving FD | 6.55% - 7.05% |
Canara Bank Tax Saving FD | 6.50% |
Bank of Baroda Tax Saving FD | 5.65% - 6.30% |
Union Bank of India Tax Saving FD | 6.70% |
Punjab & Sind Bank Tax Saving FD | 6.10% - 6.60% |
Top Small Finance Banks FD Interest Rates 2025
Small Finance Banks | Highest rate (% p.a.) | 1-Yr FD rate (% p.a.) | 3-Yr FD rate (% p.a.) | 5-Yr FD rate (% p.a.) | Additional interest rate for senior citizens interest rate (% p.a.) |
Unity Small Finance Bank | 9 | 7.85 | 8.15 | 8.15 | 0.5 |
North East Small Finance Bank | 9 | 7 | 9 | 6.25 | 0.5 |
Suryoday Small Finance Bank | 8.65 | 6.85 | 8.6 | 8.25 | 0.24-0.50 |
Shivalik Small Finance Bank | 8.55 | 6 | 7.5 | 6.5 | 0.5 |
Utkarsh Small Finance Bank | 8.5 | 8 | 8.5 | 7.75 | 0.6 |
Jana Small Finance Bank | 8.25 | 8.25 | 8.25 | 7.25 | 0.5 |
Ujjivan Small Finance Bank | 8.25 | 8.25 | 7.2 | 7.2 | 0.5 |
ESAF Small Finance Bank | 8.25 | 6 | 6.75 | 6.25 | 0.5 |
Equitas Small Finance Bank | 8.25 | 8.2 | 8 | 7.25 | 0.5 |
SBM Bank | 8.25 | 7.05 | 7.3 | 7.75 | 0.5 |
How to Open an FD Account?
A Federal Direct Investment (FD) can be opened online or offline.
1. Online: Opening a savings account (FD) online with a bank you already have an account with is the simplest option. To initiate an FD, all you need to do is sign in to your net banking account, fill out the online form, & submit it. Under such cases, the information is already with your bank, thus KYC is not required. You might move money out of your account using the online banking facility.
2. Offline: Fill out an application for a savings account at the closest branch of your bank. Send it, together with the required paperwork, to the relevant office. Once the needed cash has been deposited, you will obtain the FD receipt.
Factors that Affect the Interest Rates of Fixed Deposits
FD interest rates are influenced by several factors, some of which are mentioned below:
1. Duration of Deposit: Interest rates decrease with shorter tenure, & increase with longer or medium-term tenure.
2. Deposit Amount: You will receive better interest rates if you make larger deposits, especially if they are bulk deposits over ₹ 1 crore.
On fixed deposits, senior folks sometimes get an extra interest rate of 0.25% to 0.50%.
Tax Over the Interest of Fixed Deposits
Tax on fd interest is fully applicable & is classified as Income from Other Sources.
Banks would not collect TDS if your annual interest income from fixed deposits is less than ₹ 40,000.
You are required to file Forms 15G & 15H with the bank at the beginning of the fiscal year. Banks will stop deducting TDS when the documentation is filed.
Frequently Asked Questions
Is it Safe to Open FD in Small Finance Banks?
Which bank offers the highest FD interest rate for 1-year tenure?
Which Bank offers the Highest FD Interest rate for a 2-year tenure?
Which Bank offers the Highest FD Interest rate for a 3-year tenure?
North East Small Finance Bank has the best fixed-rate interest rate (9.00% p.a.) for a three-year term among the scheduled banks.
Which bank offers the best FD rate for a 5-year tenure?
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