Top 10 Banks Offering Highest FD Interest Rates in India 2025: Fixed Deposits (FDs) remain one of the most trusted and safe investment options for Indian investors. Whether you are a salaried professional, senior citizen, or business owner, FDs offer assured returns, stability, and flexibility in tenure. With interest rates continuously changing due to RBI monetary policies and market conditions, choosing the right bank for your FD becomes crucial.

In 2025, small finance banks (SFBs) are leading the pack with the highest FD rates, while some private and public sector banks are also offering attractive rates. In this article, we list the Top 10 Banks Offering the Highest FD Rates in India along with their tenure-wise rates, senior citizen benefits, and other key details.

1. Suryoday Small Finance Bank

Suryoday Small Finance Bank currently offers the highest FD interest rate in India, going up to 8.20% p.a. for general citizens and 8.40% p.a. for senior citizens.

• 1-year FD: 7.40%
  
• 3-year FD: 7.25%
  
• 5-year FD: 8.20%
  
• Special Tax-Saving FD: 8.20% (8.40% for senior citizens)

With tenures ranging from 7 days to 10 years, this bank is an excellent choice for investors looking for long-term high returns.

2. Jana Small Finance Bank

Jana Small Finance Bank follows closely, offering up to 8.00% p.a. on FDs.

• 1-year FD: 7.25%
  
• 3-year FD: 7.50%
  
• 5-year FD: 8.00%
  
• Senior Citizen FD Rate: Additional 0.50%

This makes Jana SFB a strong contender for individuals planning both medium and long-term deposits.

3. Slice Small Finance Bank

Slice Small Finance Bank offers a maximum FD rate of 7.75% p.a., which is attractive for mid-term investors.

• 1-year FD: 6.25%
  
• 3-year FD: 7.50%
  
• 5-year FD: 7.00%
  
• Best Rate: 7.75% (18 months 1 day – 18 months 2 days)

It is ideal for those who want higher returns in shorter to medium tenures.

4. Utkarsh Small Finance Bank

Utkarsh SFB provides 7.65% p.a. as its peak FD rate.

• 1-year FD: 6.00%
  
• 2-3 year FD: 7.65%
  
• 5-year FD: 7.25%
  
• Senior Citizens: Up to 8.15%

With strong rates in the 2–3 year slab, Utkarsh is best for investors preferring medium-term deposits.

5. Shivalik Small Finance Bank

Shivalik SFB offers 7.60% p.a. as the highest FD rate for tenures between 18–24 months.

• 1-year FD: 6.00%
  
• 3-year FD: 7.50%
  
• 5-year FD: 6.50%
  
• Senior Citizens: 0.50% extra

It is well-suited for depositors aiming for 2–3 year tenure investments.

6. ESAF Small Finance Bank

ESAF SFB provides up to 7.60% p.a. on fixed deposits.

• 1-year FD: 4.75%
  
• 3-year FD: 6.00%
  
• 5-year FD: 5.75%
  
• Highest Rate: 7.60% (for 444 days)

This makes ESAF a good option for those looking for special tenures rather than standard terms.

7. SBM Bank

Among private sector scheduled banks, SBM Bank leads with up to 7.50% p.a.

• 1-year FD: 7.05%
  
• 3-year FD: 7.05%
  
• 5-year FD: 7.50%
  
• Senior Citizens: 8.00%

SBM is one of the rare private sector banks offering competitive rates comparable to small finance banks.

8. Ujjivan Small Finance Bank

Ujjivan SFB offers a maximum FD rate of 7.45% p.a.

• 1-year FD: 7.25%
  
• 3-year FD: 7.20%
  
• 5-year FD: 7.20%
  
• Special Rate: 7.45% (24 months)

This makes Ujjivan a strong choice for those looking at 2-year deposits.

9. Equitas Small Finance Bank

Equitas SFB provides FD rates as high as 7.40% p.a. for 888 days.

• 1-year FD: 7.00%
  
• 3-year FD: 7.00%
  
• 5-year FD: 7.00%
  
• Senior Citizens: Up to 7.90%

Equitas is a reliable option for stable mid-to-long-term FDs.

10. Bandhan Bank

Among full-fledged commercial banks, Bandhan Bank offers competitive FD rates of up to 7.20% p.a.

• 1-year FD: 7.00%
  
• 2-year FD: 7.20%
  
• 5-year FD: 5.85%
  
• Senior Citizens: 0.50%–0.75% extra

While its 5-year FD rate is lower than small finance banks, Bandhan Bank is a safer choice for conservative investors.

FD Interest Rates for Senior Citizens

Senior citizens enjoy an additional 0.50% to 0.75% interest across most banks. Some banks like RBL Bank and IndusInd Bank offer extra benefits for super senior citizens (80 years and above).

For example:

• Suryoday SFB: 8.40% (5 years)
  
• Jana SFB: 8.50% (select tenures)
  
• SBM Bank: 8.00% (5 years)
  
• RBL Bank: Up to 7.95% for senior citizens; 8.20% for super seniors

Why Do Small Finance Banks Offer Higher FD Rates?

Small Finance Banks (SFBs) usually offer higher FD rates compared to public and private sector banks because:

• They aim to attract more retail depositors to strengthen their funds.
  
• They have smaller balance sheets compared to big banks, so higher interest acts as a competitive advantage.
  
• To promote financial inclusion, RBI has allowed them flexibility to offer attractive deposit rates.

Despite being relatively new, SFBs are RBI-regulated scheduled banks and deposits are insured up to ₹5 lakh under DICGC insurance, making them safe up to that limit.

Conclusion

As of September 2025, the highest FD rates in India are offered by Suryoday Small Finance Bank (8.20%), followed by Jana Small Finance Bank (8.00%), and Slice Small Finance Bank (7.75%). Among private banks, SBM Bank tops with 7.50%, while among public sector banks, Central Bank of India offers up to 7.00%. If you are looking for maximum returns, small finance banks are the best choice. However, if safety and brand value matter more, opting for large private or public sector banks with slightly lower rates may be wiser. By comparing rates and aligning them with your investment horizon, you can make the most out of your FD investments in 2025.