Bank FD Scheme Interest Rate : There are many investment options available in India, but Fixed Deposits (FDs) have always been considered a safe and stable source of returns. Recently, in 2025, some banks have started offering attractive FD interest rates of up to 9%, which is great news for investors. If you also want to keep your savings safe while earning decent returns, this update is very important for you.
The biggest advantage of investing in FDs is that you get a fixed interest rate, which remains unaffected by market fluctuations. Due to the Reserve Bank of India’s monetary policies, many banks have now increased their FD interest rates. In particular, Small Finance Banks and some NBFCs (Non-Banking Financial Companies) are offering interest rates above 8%, with some even going up to 9%, which is much higher compared to traditional large banks.
This article provides complete information about the banks offering the highest FD interest rates in 2025, along with the benefits and precautions of FD investments. A simple comparison table of banks and their FD interest rates is also included below.
Highest Bank FD Scheme Interest Rate Bank List 2025
In 2025, the highest FD interest rates are being offered mainly by Small Finance Banks and a few NBFCs. Traditional large banks like SBI, ICICI, and HDFC are offering comparatively lower rates (around 6.5% to 7.5%), while smaller institutions are providing 8% to 9% interest.
Here’s a summary table of India’s top banks with their latest FD interest rates in 2025:
| Bank Name | FD Interest Rate (Annual, %) | Maximum Tenure (Years) | Special Interest (Senior Citizens) |
|---|---|---|---|
| Suryoday Small Finance Bank | 9.10% | 5 | 9.60% |
| Muthoot Capital Services | 8.95% | 3 | 9.20% |
| Jana Small Finance Bank | 8.00% | 5 | 8.50% |
| Equitas Small Finance Bank | 8.50% | ~3 | 9.00% |
| ESAF Bank | 8.50% | 2–3 | 9.00% |
| Ujjivan Small Finance Bank | 8.25% | ~1–2 | 8.85% |
| ICICI Bank | 6.60% | 2–10 | 7.10% |
| State Bank of India (SBI) | 7.29% | ~1.1 | 7.82% |
Note: Senior citizens usually receive an additional benefit of 0.25% to 0.60% over standard rates.
Benefits and Precautions of FD Investment
Benefits of Investing in FD:
- Safe Investment: Your capital remains secure.
- Fixed Returns: The interest rate is locked, ensuring predictable future income.
- Simple Process: Easy to invest and withdraw funds.
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Extra Benefit for Senior Citizens: Higher interest rates for senior investors.
Things to Keep in Mind While Investing in FD:
- Interest rates vary from bank to bank and change over time.
- Small Finance Banks and NBFCs offer higher rates, but always check their financial stability.
- The government provides insurance coverage of up to ₹5 lakh per depositor per bank.
- Keep track of tax implications, as FD interest is taxable.
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RBI policy changes can affect FD rates, so always verify the latest rates on official bank websites before investing.
Best Banks for Bumper FD Returns in 2025
If you want the highest interest rates, focus on:
- Suryoday Small Finance Bank and Muthoot Capital Services, offering rates above 9%.
- Jana, Equitas, ESAF, and Ujjivan Small Finance Banks also provide attractive rates.
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Traditional banks like SBI, ICICI, and HDFC offer slightly lower returns but are more secure and reliable.
Investors can choose banks and tenure according to their financial goals and risk appetite.
FD Interest Rate Comparison Chart (2025)
| Bank Name | Highest FD Interest Rate (%) | Tenure |
|---|---|---|
| Suryoday Small Finance Bank | 9.10% | 5 Years |
| Muthoot Capital Services | 8.95% | 3 Years |
| Jana Small Finance Bank | 8.00% | 5 Years |
| Equitas Small Finance Bank | 8.50% | ~3 Years |
| ESAF Bank | 8.50% | 2–3 Years |
| Ujjivan Small Finance Bank | 8.25% | ~1–2 Years |
| ICICI Bank | 6.60% | 2–10 Years |
| State Bank of India (SBI) | 7.29% | ~1.1 Years |
Conclusion and Reality Check
Most news reports claiming “FDs offering up to 9% interest” refer mainly to Small Finance Banks and NBFCs, which indeed provide higher rates compared to traditional banks. Hence, it’s true that in 2025, some banks are offering up to 9% FD interest, but this doesn’t apply to all banks.
However, investors must be cautious when investing in Small Finance Banks or NBFCs, as the risk level may be slightly higher. On the other hand, government and large private banks offer slightly lower returns but come with greater security.
Therefore, always check official bank websites or consult a financial advisor before investing. FD remains a safe and stable investment option, but you should always consider both interest rate and institutional reliability before making your decision.
