Fixed Deposits (FDs) are still one of the most trusted and popular ways to invest money in India. With the stock market being uncertain and mutual funds returns going up and down, FDs give you a safe and steady way to grow your savings. As we enter 2015, many banks and financial institutions are offering good FD interest rates, especially for senior citizens.
This guide will help you find the Best Fixed Deposit FD Interest Rates in India 2025, compare interest rates, and pick the right FD based on your financial needs and goals
Why Choose Fixed Deposits in 2025?
In 2025, interest rates are becoming more stable after many changes made by the Reserve Bank of India (RBI). Even though inflation is still going up, Fixed Deposits (FDs) are a safe way to earn money. They give guaranteed returns, which means you know exactly how much you will get at the end. That makes FDs a great choice for people who don’t want to take risks with their money.
Here’s why you should invest in Fixed Deposits in 2025:
- Assured returns with no market risk, means you don’t have to worry about the ups and downs of the stock market.
- Flexible tenures from 7 days to 10 years, means you can choose how long you want to invest.
- Easy to open online or offline, means you can start an FD from your bank’s website or by visiting a branch.
- Higher interest rates for senior citizens in which you get better returns compared to regular FD rates.
- Tax-saving FDs under Section 80C of the Income Tax Act, in which you can claim a tax deduction of up to ₹1.5 lakh.
Best Fixed Deposit FD Interest Rates in India 2025
1. SBI Fixed Deposit
- It is India’s most trusted bank and they are providing interest rates of 6.50% to 7.10% for regular customers and 7.00% to 7.60% for senior citizens according to 2025 data.
- They provide the tenure of 7 days to 10 years with the minimum deposit of ₹1,000 and premature withdrawal is allowed but may have a penalty.
SBI is trusted by millions across India. It has a strong network of branches and offers easy FD booking online. Great for both cities and rural areas.
2. HDFC Bank Fixed Deposit
- It is considered as the best private bank FD, in which they offer interest rates of 6.75% to 7.25% to regular customers and 7.25% to 7.75% to senior citizens as per 2025.
- They offer the tenure for 7 days to 10 years with the minimum deposit of ₹5,000 and premature withdrawal is allowed but may cost with few penalties.
It is mainly known for great customer services and high returns, especially for senior citizens. It also offers features like auto-renewal and FD sweep-in.
3. ICICI Bank Fixed Deposit
- It is known for its great digital experience, in which ICCI bank offer interest rates of 6.70% to 7.10% to regular customers and 7.20% to 7.60% to senior citizens as per 2025.
- They also offer the tenure for 7 days to 10 years with the minimum deposit of ₹10,000 and premature withdrawal is allowed but may cost with few penalties.
It is perfect for those who like digital banking, from where you can manage everything online from opening to closing your FDs.
4. IDFC FIRST Bank FD
- It is known for high-interest rates for everyone, in which they offer interest rates of 7.25% to 8.00% to regular customers and 7.74% to 8.50% to senior citizens as per 2025.
- They also offer the tenure for 7 days to 10 years with the minimum deposit of ₹10,000 and premature withdrawal is allowed.
IDFC FIRST Bank FD offers one of the highest FD interest rates in India and it is a smart pick for both short-term and long-term investment.
5. Bajaj Finance Fixed Deposit
- It is considered as the best non-banking FD plan, in which they offer interest rates of 7.50% to 8.35% to regular customers and 8.00% to 8.60% to senior citizens as per 2025.
- They offer the tenure for 1 year to 5 years with the minimum deposit of ₹15,000 and premature withdrawal is allowed but with conditions apply.
It provides non-banking FDs with high returns and strong credit ratings (CRISIL/ICRA AAA). It is a good choice for safe, high-interest investing outside banks.
Factors to Consider Before Investing in Fixed Deposits
Before choosing the best FD in 2025, keep these important things in mind:
- Interest Rates – always compare the interest rates offered by different banks and NBFCs. A higher rate means your money will grow more by the time the FD matures. Even a small difference in rates can make a big impact on your final return.
- Tenure – Always choose the tenure based on your financial needs. Go for FDs with shorter durations like 6 months to 1 year for short-term goals and choose FDs with longer terms like 3 to 5 years or more for long-term goals.
- Payout Option – Choose if you want regular interest which is monthly or quarterly or a lump-sum at the end, which is called cumulative return.
- Premature Withdrawal Rules – Understand the rules around premature withdrawal. Some banks charge a penalty if you take your money out before the FD term ends. Know the charges and conditions in advance to avoid penalties.
- Taxation – Keep in mind that interest earned in FDs is taxable under your income slab and if you want to save tax, consider 5-year tax-saving FDs that qualify for deduction under Section 80C up to ₹1.5 lakh per year.
Tax-Saving Fixed Deposit in 2025
If you want to save on income tax, tax-saving fixed deposits (FDs) are a smart and safe choice. These are special types of FDs offered by banks that help you get tax benefits under Section 80C of the Income Tax Act.
Here’s why you might consider them:
- They gave a lock-in period of 5 years, which means you can’t take the money out for 5 years.
- They give fixed returns, so you know how much you will earn in advance.
- You can get a tax deduction of up to ₹1.5 lakh under Section 80C of Income Tax Act, which helps reduce your taxable income.
- Premature withdrawal is not allowed, so your money stays invested until maturity.
Best Tax-Saving FDs in 2025:
- SBI Tax Saver FD – Interest rate up to 7.10%
- HDFC Bank Tax Saving FD – Interest rate up to 7.25%
- Axis Bank Tax Saver FD – Interest rate up to 7.20%
These FDs are great for people who want a safe way to invest and save on taxes at the same time.
Fixed Deposits for Senior Citizens – 2025 Returns
In 2025, many banks are offering Fixed Deposits for senior citizens with better returns. Senior citizens usually get an extra 0.50% interest compared to regular customers. This makes fixed deposits a popular and safe option for older people looking to earn steady income.
Some banks also have special fixed deposit schemes just for seniors. These come with higher interest rates and more benefits:
- SBI “WeCare” FD – This is a special FD by SBI that gives extra interest over the usual senior FD rates. It is made to give more benefits to senior citizens who want to invest for longer periods.
- HDFC Senior Citizen Care FD – This is a special FD with higher interest rates and flexible payout options, so you can choose how and when you want to receive your interest.
Senior citizen FD rates in 2025 range from 7.00% to 8.60%, based on the bank and the deposit period. These fixed deposits are great for retirees who want a safe way to earn regular income.
Final Thoughts
Fixed Deposits in 2025 are offering good interest rates, especially from smaller banks and NBFCs. Whether you are working, retired, or saving for a short-term goal, FDs can be a safe and smart way to invest. But before you invest, it’s important to compare FD interest rates, tenure, and safety ratings.
If you want guaranteed returns, low risk, and flexible terms, investing in one of the top FDs in India for 2025 can be a smart choice for your portfolio.
FAQs
Which bank gives the highest fixed deposit interest rate in 2025?
IDFC FIRST Bank and Bajaj Finance offer some of the highest fixed deposit interest rates in 2025. Senior citizens can get up to 8.60% interest.
Is it safe to invest in NBFC fixed deposits like Bajaj FInance?
Yes, it is safe. Bajaj Finance FDs have a top safety rating (AAA) from CRISIL and ICRA, meaning your money is secure.
Are fixed deposits taxable in 2025?
Yes, the interest rate on FDs is taxed as per your income tax slab. But tax-saving FDs can help you save under Section 80C.
What is the minimum amount required to open an FD in India?
You can start a fixed deposit with just ₹1,000 in most banks. For NBFCs, the minimum amount is usually ₹10,000 to ₹15,000.
Can I break my FD before maturity?
Yes, you can take out your fixed deposit early, but most banks charge a small penalty of 0.5% to 1% on the interest.