The Reserve Bank of India (RBI) is likely to go for a rate cut in its April MPC meeting, which may prompt banks to lower the interest rates on their fixed deposits further. It may be noted that some of the banks and financial institutions have already reduced their FD rates following the 25 bps rate cut by the RBI in February this year. Keeping this in view, it may be the right time for investors to invest in FDs or extend the duration of existing fixed deposits.
A fixed deposit (FD) is an attractive option for those who prefer a low-risk investment as it guarantees a fixed interest rate on the principal amount throughout the deposit’s term, allowing for interest accumulation over time. One significant benefit of FDs is their flexible tenure, which enables investors to manage multiple deposits with different durations.
You may choose to open an FD account with your current bank or select another institution that offers more favorable interest rates. The choice is yours; however, be aware that the process may vary, especially concerning KYC and other documentation requirements if you opt for a bank with which you do not have an existing relationship.
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Fixed deposits provide a secure way to protect a specific amount while generating a reliable income stream. If you have a lump sum that you do not plan to access for some time, investing it in an FD account is a wise decision. The returns on FDs are stable, as they are not subject to market volatility, ensuring a predetermined interest rate for the agreed duration.
Opening an FD account has become a simple process. You can either use online banking services or visit the nearest branch of your bank. If you decide to open an FD account with the same bank where you hold a savings account, you can avoid the KYC process and transfer funds effortlessly.
Given below is a compilation of several leading banks in India, such as HDFC Bank, SBI, ICICI Bank, Axis Bank, Yes Bank, BoI, and PNB, among others, which offer attractive interest rates on fixed deposits. You should, however, evaluate the interest rates and the term in a bid to choose the option that aligns with your requirements.
| Bank Fixed Deposit Rates | |||||
| Bank Name | Interest Rates (p.a.) | ||||
| Highest slab | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | ||
| % | Tenure | ||||
| SMALL FINANCE BANKS | |||||
| AU Small Finance Bank | 8.00 | 18 months | 7.25 | 7.50 | 7.25 |
| Equitas Small Finance Bank | 8.25 | 888 days | 8.10 | 8.00 | 7.25 |
| ESAF Small Finance Bank | 8.38 | 888 days | 6.00 | 6.75 | 6.25 |
| Jana Small Finance Bank | 8.25 | 1 year to 3 years | 8.25 | 8.25 | 8.20 |
| NorthEast Small Finance Bank | 9.00 | 18 months 1 day to 36 months | 7.00 | 9.00 | 8.00 |
| Suryoday Small Finance Bank | 8.60 | 5 years | 8.25 | 8.25 | 8.60 |
| Ujjivan Small Finance Bank | 8.25 | 18 months | 8.10 | 7.20 | 7.20 |
| Unity Small Finance Bank | 8.60 | 1001 days | 7.25 | 8.15 | 8.15 |
| Utkarsh Small Finance Bank | 8.50 | 2 years to 3 years; 1500 days | 8.00 | 8.50 | 7.75 |
| PRIVATE SECTOR BANKS | |||||
| Axis Bank | 7.25 | 15 months to less than 2 years | 6.70 | 7.10 | 7.00 |
| Bandhan Bank | 8.05 | 1 year | 8.05 | 7.25 | 5.85 |
| City Union Bank | 7.50 | 333 days | 7.00 | 6.50 | 6.25 |
| CSB Bank | 8.00 | 501 days | 5.00 | 5.75 | 5.75 |
| DBS Bank | 7.50 | 376 days to 540 days | 7.00 | 6.50 | 6.50 |
| DCB Bank | 8.00 | 15 months to less than 16 months | 7.10 | 7.50 | 7.40 |
| Federal Bank | 7.50 | 444 days | 7.00 | 7.10 | 7.10 |
| HDFC Bank | 7.40 | 4 year 7 months (55 months) | 6.60 | 7.00 | 7.00 |
| ICICI Bank | 7.25 | 15 months to 2 years | 6.70 | 7.00 | 7.00 |
| IDFC FIRST Bank | 7.90 | 400 days to 500 days | 6.50 | 6.80 | 6.75 |
| IndusInd Bank | 7.75 | 1 year to 2 years | 7.75 | 7.25 | 7.25 |
| Jammu & Kashmir Bank | 7.30 | 888 days | 7.00 | 6.75 | 6.50 |
| Karur Vysya Bank | 7.60 | 760 days – Special Deposit | 7.00 | 7.00 | 7.00 |
| Karnataka Bank | 7.50 | 401 days | 7.25 | 6.50 | 6.50 |
| Kotak Mahindra Bank | 7.40 | 390 days to less than 23 months | 7.10 | 7.00 | 6.20 |
| RBL Bank | 8.00 | 500 days | 7.50 | 7.50 | 7.10 |
| SBM Bank India | 8.25 | Above 18 months to less than 2 years 3 days | 7.05 | 7.30 | 7.75 |
| South Indian Bank | 7.40 | 1 year 7 days; 18 months | 6.80 | 6.70 | 6.00 |
| Tamilnad Mercantile Bank | 7.60 | 300 days (TMB300) | 7.00 | 6.50 | 6.50 |
| YES Bank | 8.00 | 18 months | 7.75 | 7.25 | 7.25 |
| PUBLIC SECTOR BANKS | |||||
| Bank of Baroda | 7.30 | 400 days – Bob Utsav | 6.85 | 7.15 | 6.80 |
| Bank of India | 7.30 | 400 days | 6.80 | 6.50 | 6.00 |
| Bank of Maharashtra | 7.45 | 366 days | 6.75 | 6.50 | 6.50 |
| Canara Bank | 7.40 | 3 years to less than 5 years | 6.85 | 7.40 | 6.70 |
| Central Bank of India | 7.50 | 1111 days; 3333 days | 6.85 | 7.00 | 6.75 |
| Indian Bank | 7.30 | 400 days – IND SUPER | 6.10 | 6.25 | 6.25 |
| Indian Overseas Bank | 7.30 | 444 days | 7.10 | 6.50 | 6.50 |
| Punjab National Bank | 7.25 | 400 days | 6.80 | 7.00 | 6.50 |
| Punjab & Sind Bank | 7.45 | 555 days | 6.30 | 6.00 | 6.50 |
| State Bank of India | 7.25 | 444 days – Amrit Vrishti | 6.80 | 6.75 | 6.50 |
| Union Bank of India | 7.30 | 456 days | 6.80 | 6.70 | 6.50 |
| FOREIGN BANKS | |||||
| Deutsche Bank | 8.00 | Above 1 year to 3 years | 7.00 | 8.00 | 7.50 |
| HSBC Bank | 7.50 | 601 to 699 days | 4.00 | 7.00 | 6.00 |
| Standard Chartered Bank | 7.50 | 1 year to 375 days | 7.50 | 7.10 | 6.75 |
| Source: Paisabazaar.com | |||||
| Interest rates as of 26th March 2025 | |||||