Over 20 Banks Offering 8%+ Interest on FDs: A Boost for Investors

Fixed deposits (FDs) remain a popular investment option in India, especially for those seeking safe and high-yield returns. As of February 5, 2025, more than 20 banks are offering FD interest rates of 8% or higher as per reports.

Read More About What is Fixed Deposit (FD)?

Top Banks Offering the Best FD Rates

Small Finance Banks Leading the Way

Small finance banks continue to offer the highest FD interest rates. Here are the top ones:

• Unity Small Finance Bank – 9.00% (1001 days)
• NorthEast Small Finance Bank – 9.00% (18 months 1 day to 36 months)
• Suryoday Small Finance Bank – 8.60% (5 years)
• Utkarsh Small Finance Bank – 8.50% (2-3 years; 1500 days)
• ESAF Small Finance Bank – 8.38% (888 days)
• Jana Small Finance Bank – 8.25% (1-3 years)
• Equitas Small Finance Bank – 8.25% (888 days)
• Ujjivan Small Finance Bank – 8.25% (12 months)
• AU Small Finance Bank – 8.10% (18 months)

Private Sector Banks Offering Competitive Rates

Private banks are also offering attractive interest rates to stay competitive:

• Bandhan Bank – 8.05% (1 year)
• RBL Bank – 8.00% (500 days)
• YES Bank – 8.00% (18 months)
• IDFC First Bank – 7.90% (400-500 days)
• IndusInd Bank – 7.99% (1 year 5 months to 1 year 6 months)
• DCB Bank – 8.05% (19-20 months; 26 months to less than 61 months)

Public Sector Banks with Strong FD Returns

Government banks are also providing competitive FD rates:

• Central Bank of India – 7.50% (1111 days; 3333 days)
• Bank of Maharashtra – 7.45% (366 days)
• Bank of India – 7.30% (400 days)
• Canara Bank – 7.40% (3 years to less than 5 years)
• Punjab & Sind Bank – 7.45% (555 days)

Foreign Banks Offering High FD Rates

Some foreign banks have attractive FD schemes as well:

• Deutsche Bank – 8.00% (1-3 years)
• Standard Chartered Bank – 7.50% (1 year to 375 days)
• HSBC Bank – 7.50% (601 to 699 days)

FD Rate Comparison: Which Banks Offer the Best Returns?

• Small finance banks dominate the list with the highest rates, going up to 9.00%.
• Private banks compete with rates of up to 8.05%.
• Public sector banks provide secure returns with rates up to 7.50%.
• Foreign banks offer limited options, with the highest rate at 8.00%.

Conclusion

For those looking to invest in fixed deposits, small finance banks provide the highest interest rates, while private and public sector banks also offer solid returns. Investors should compare FD tenures and bank credibility before making a decision.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.