FD Returns: If you are someone who wants to save money and earn good returns without taking much risk, then a Fixed Deposit (FD) is a great option for you. FDs are offered by banks and are one of the safest investment options in India. You invest a certain amount for a fixed time, and the bank gives you a fixed interest rate. When the term ends, you get your money back with interest.
But not all banks offer the same interest rate. Some banks are giving very high FD returns, especially for senior citizens. In this article, we will tell you about 5 banks that are currently offering the highest FD returns in 2025.
Why Choose FD Over Other Investments?
- Safe and secure
- Guaranteed returns
- Easy to open and manage
- Suitable for all age groups
- Tax saving options (in some cases)
Top 5 Banks Offering High FD Returns in 2025
Here is the list of banks giving the best FD interest rates right now:
| Bank Name | Interest Rate (General Public) | Interest Rate (Senior Citizens) | Tenure Range |
| Unity Small Finance Bank | 9.00% | 9.50% | 1001 Days |
| Utkarsh Small Finance Bank | 8.50% | 9.00% | 700 Days |
| Equitas Small Finance Bank | 8.25% | 8.75% | 888 Days |
| Suryoday Small Finance Bank | 8.75% | 9.25% | 999 Days |
| Jana Small Finance Bank | 8.15% | 8.85% | 1-3 Years |
1. Unity Small Finance Bank
- Interest Rate: 9.00% (General), 9.50% (Senior Citizens)
- Best Tenure: 1001 Days
- Highlight: One of the best in the market. Safe and RBI regulated.
- Tip: Ideal for those looking for high returns in less than 3 years.
2. Utkarsh Small Finance Bank
- Interest Rate: 8.50% (General), 9.00% (Senior Citizens)
- Best Tenure: 700 Days
- Highlight: Fast-growing small finance bank.
- Tip: Good for short- to medium-term investors.
3. Equitas Small Finance Bank
- Interest Rate: 8.25% (General), 8.75% (Senior Citizens)
- Best Tenure: 888 Days
- Highlight: Strong digital presence. Safe banking.
- Tip: Suitable for online-savvy investors.
4. Suryoday Small Finance Bank
- Interest Rate: 8.75% (General), 9.25% (Senior Citizens)
- Best Tenure: 999 Days
- Highlight: Offers high returns with decent safety.
- Tip: Attractive for retirees and senior citizens.
5. Jana Small Finance Bank
- Interest Rate: 8.15% (General), 8.85% (Senior Citizens)
- Best Tenure: 1-3 Years
- Highlight: Offers flexible FDs with high interest.
- Tip: Choose auto-renew option for continued benefit.
Senior Citizens Get Extra Benefits
If you are 60 years or older, you will get 0.50% extra interest in most banks. This makes FDs even better for retirees who want monthly income or safe savings.
Things to Keep in Mind Before Investing
- Check Bank Safety: Make sure the bank is RBI-licensed and insured under DICGC (up to ₹5 lakh).
- Penalty on Premature Withdrawal: If you break your FD before maturity, banks may cut interest.
- Tax on FD Interest: Interest earned on FD is taxable. TDS is cut if interest crosses ₹40,000 (₹50,000 for seniors).
- Compare Before Investing: Always check rates from at least 3-4 banks.
How to Open an FD?
You can open an FD easily by:
- Visiting a bank branch
- Using internet banking
- Mobile banking apps
- Calling customer service
Most banks allow online FD creation with just a few clicks.
Final Thoughts
Fixed Deposits are a great way to grow your money safely. In 2025, many small finance banks are offering very attractive FD interest rates, sometimes even higher than regular banks. If you are not looking for risky investments like stock market or mutual funds, this is a good time to lock your money in a high-return FD.
