In 2025, fixed deposit (FD) interest rates in India continue to vary significantly across banks, offering both conservative investors and those seeking higher returns plenty of options. While large banks like SBI and HDFC provide safe and stable interest rates between 6–7%, several Small Finance Banks are raising the bar with rates nearing 9%. Understanding these trends can help you maximize returns while managing risk effectively.
Small Finance Banks Leading on Interest Rates
Small Finance Banks are currently offering some of the highest FD rates in the country. For tenures around 18 months, Slice Small Finance Bank offers a rate close to 9% the highest among all banks. Unity Small Finance Bank offers up to 8.60% for a 1001-day deposit, while Suryoday, Utkarsh, and Jana Small Finance Banks offer rates ranging from 8.20% to 8.40%.
Mainstream Banks: Stability Meets Modest Returns
Larger banks like SBI and HDFC offer lower, but highly reliable FD rates. SBI’s general public rates range from 3.05% to 6.60%, with senior citizens receiving up to 7.10%, including for its 444-day “Amrit Vrishti” special FD scheme.Meanwhile, HDFC Bank offers up to 6.60% for regular customers and up to 7.10% for senior citizens.
Public Sector Banks: Moderate Rates with Trust
Other public sector banks like Canara Bank provide FD rates in the range of 3.25% to 6.50% for general customers and up to 7.00% for senior citizens.
Snapshot Table of FD Rates (2025)
| Bank / Category | General Public FD Rate (%) | Senior Citizen FD Rate (%) |
|---|---|---|
| Slice Small Finance Bank | ≈ 9.00% (18-month FD) | — |
| Unity Small Finance Bank | Up to 8.60% (1001 days) | — |
| Suryoday, Utkarsh, Jana SFBs | Up to 8.40%, 8.25%, 8.20% | — |
| State Bank of India (SBI) | 3.05–6.60% | Up to 7.10% |
| HDFC Bank | Up to 6.60% | Up to 7.10% |
| Canara Bank (Public Sector) | 3.25–6.50% | Up to 7.00% |
Choosing Between High Rates and High Safety
While Small Finance Banks offer tempting returns, it’s essential to remember that they carry higher risk compared to well-established public or private sector banks. Deposits up to ₹5 lakh are insured under DICGC, but beyond that cap, assess the bank’s stability before investing.
