Top Bank FDs in India 2025
There are many top banks in India that offer a good range of Fixed Deposit (FD) options that come with a list of features such as nomination facility, competitive rate of interest, joint account, loan/overdraft facility, among others.
Let us take a detailed look at some of the best banks and their FD interest rates.
Features of Bank FD
Here are the features of fixed deposits:
- Safe and secure investment option. Guaranteed returns with a predetermined interest rate
- Flexible investment tenures to suit financial goals. Investment tenures ranging from 7 days to 10 years
- Interest is compounded, leading to faster growth of funds. Compounded returns on the invested amount (quarterly, annually, or monthly)
- Premature and partial withdrawals allowed with penalties. Limited liquidity with restrictions on early withdrawals
- Option to reinvest the maturity amount
- Interest rates are influenced by market conditions and policies. Inflation risk may affect real returns
- Fixed returns, potentially lower than other investment avenues
- Senior citizens receive 0.5% higher returns compared to regular investors
Top Bank Fixed Deposit Schemes in 2025
Bank | 1 year | 3 years | 5 years |
7.25% | 7.25% | 7.25% | |
7.00% | 7.00% | 6.50% | |
6.40% | 6.00% | 6.00% | |
6.70% | 7.10% | 7.00% | |
6.60% | 7.00% | 7.00% | |
6.90% | 6.80% | 6.70% | |
6.75% | 7.00% | 6.50% |
*Interest rates are subject to change and may be revised from time to time
*Higher interest rates will be offered to senior citizens
Yes Bank FD Rates
- Yes Bank offers competitive interest rates on all deposit schemes
- For a tenure of 1 year, the interest rate is 7.25%
- Deposits maturing between 1 year to 3 years earn interest of 7.25%.
- For investing money in a FD account having a tenure of five, interest of 7.25% is offered by the bank.
- Senior citizens receive an extra interest rate of 0.50% for tenures below 3 years and 0.75% for tenures of 3 years and above on fixed deposits valued below Rs.5 crore, in addition to the regular FD rates
Karur Vysya Bank FD rates
- For a tenure of 1 year, the interest rate is 7.00%.
- Deposits maturing in 3 years earn interest of 7.00%
- For investing money in an FD account having a tenure of five years, interest of 6.50% is offered by the bank.
- Senior citizens are offered additional interest of up to 0.50% on FD tenures.
Punjab and Sind Bank Rates
- For deposits held for 1 year, the rate paid is 6.40%
- For an investment period that extends to 3 years, the annual rate of return is 6.00%.
- A bank deposit rate of 6.00% p.a. is paid if the deposit is held for a period of five years
- Senior citizens will enjoy an additional interest benefit of 0.50% on term deposits below Rs.2 crore.
- Super senior citizens, aged 80 years and above, will receive an extra interest benefit of 0.15% on specific period term deposits (400 Days, 555 Days, and 601 Days) valued below Rs.2 crore.
Axis Bank FD Rates
- An interest rate of 3.50% to 6.00% will be paid for any FD that is held for a period of 1 year
- The highest rate of interest paid by Axis Bank is for an investment period of 3 years at 7.10%
- All senior citizens will get an additional interest percentage
HDFC Bank FD rates
- The best deposit rate paid by HDFC Bank is 6.60% for a tenure of 1 year.
- For a tenure range of 3 years, the rate of return paid is 7.00%
- For those who make an investment of 5 years, the rate of return will be 7.00%
- The bank offers a wide range of tenure options
- Senior citizens get an additional 0.50% interest rate across various tenures.
Canara Bank FD Rates
Let us take a detailed look at some of the best banks and their FD interest rates.
- For all term deposits of less than Rs.1 crore, the rate of interest offered by Canara Bank ranges from 4.00% to 6.50%
- For a time period of 3 years, the rate offered is 6.80%.
- The highest rate of interest is paid for 5 years where the rate of return is 6.80%
- For deposits (excluding NRO/NRE and CGA deposits) valued below Rs.2 crore and with a tenure of 180 days and above, senior citizens are eligible for an additional interest rate of 0.50%.
Punjab National Bank FD Rates
- The best deposit rate paid by Punjab National Bank is 6.40% for a tenure of 1 year.
- For a tenure of 3 years, the rate of return paid is 7.00%
- For those who make an investment for 5 years, the rate of return will be 6.00%.
- Senior citizens are eligible for an additional 0.50% interest rate across different tenures.
- Super senior citizens (aged 80 years and above) are eligible for an additional 0.80% interest rate across various tenures.
FAQs on Top Bank FDs in India
- What does the term reinvestment or cumulative FD mean?
It refers to a type of fixed deposit where the interest is compounded quarterly and added to the principal amount for reinvestment. The maturity period for these fixed deposits can range from 6 months to 10 years.
- What minimum deposit amount is needed to open an FD account?
The minimum deposit amount that is required in order to open an FD account is Rs. 1,000, although this may differ among different banks.
- Which bank offers the highest FD rates?
The highest rate paid is by YES Bank with an interest rate of 7.50% p.a. for a tenure of 3 years.
- How much interest rate does Punjab National Bank?
Punjab National Bank offers interest rate between 6.50% to 7.00% to its customers.
- How does Canara Bank interest rates range?
For all term deposits of less than Rs.2 crore, the rate of interest offered by Canara Bank ranges from 6.70% to 6.90%
- How much should I deposit to get these returns?
The banks offer a high interest rate on domestic fixed deposits below for a deposit amount of Rs.2 crore.
- Do senior citizens get more interest rates?
Senior citizens, those above 60 years of age, are often given a rate of interest which is 0.50% more than those below the age of 60.
- Is there a limit to the amount that can be invested in an FD account?
While it may differ from bank to bank, there is typically no maximum limit. That being said, depositors who invest more than Rs. 1 crore can often negotiate customized interest rates with their bank.
- Do senior citizens receive any special benefits?
Yes, many banks and financial institutions provide senior citizens with a higher rate of interest on their fixed deposit accounts. Additionally, even if a senior citizen opens a fixed deposit account with a co-applicant who is not a senior citizen, they are still eligible for this benefit.
- Does the interest earned on a fixed deposit account attract TDS?
TDS is not applicable on interest earned up to Rs. 5,000 to 10,000, depending on the financial institution. If the investor's total income falls below the taxable limit, they can submit Form 15G or 15H while opening the FD account to avoid tax deductions.
- Is it possible to obtain a loan using a fixed deposit as collateral?
Yes, one advantage of having an FD account is that it can be utilized as collateral to secure a loan. This can be helpful during financial emergencies as it lets you borrow money against your FD without breaking it prematurely and losing interest. The loan amount offered by banks typically ranges from 60% to 90% of the deposited amount, although higher amounts may be available at a higher interest rate. Interest rates for loans against FDs are usually 2% to 2.5% higher than the interest rate on the FD but are still generally lower than the rates for personal loans.
- How is the interest amount paid?
You have the option to choose how you receive the interest amount on your FD. Instead of opting for monthly interest, you could choose longer intervals such as quarterly, half-yearly, yearly, or upon maturity. The interest can be paid using two methods: either through Electronic Clearing System (ECS) or by cheque.
- Do fixed deposits have a nomination facility?
Yes, fixed deposits do have a nomination facility. To prepare for unexpected situations, banks and other financial institutions provide the option of nominating a person. In case of the depositor's demise, the nominee can claim the fixed deposit amount upon maturity. However, the availability of this facility may depend on the mode of holding.
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