Best FD Interest Rates in India: February 2025 Update

Several banks have maintained or even enhanced their FD rates to attract depositors
Best FD Interest Rates in India: February 2025 Update
Written By:
Pardeep Sharma
Published on

Fixed deposits (FDs) in India continue to be a favored investment avenue, offering assured returns and capital safety. Recent adjustments in monetary policy, notably the Reserve Bank of India's (RBI) 25 basis points reduction in the repo rate to 6.25% in early February 2025, have influenced FD interest rates across various banking institutions. Despite this, several banks have maintained or even enhanced their FD rates to attract depositors. Below is a comprehensive overview of the current FD interest rates offered by prominent banks in India.

1. Shivalik Small Finance Bank

Shivalik Small Finance Bank has revised its FD interest rates, now offering up to 8.80% per annum for general depositors and 9.30% for senior citizens on tenures ranging from 12 months and 1 day to less than 18 months. These rates have been effective since January 22, 2025.

2. DCB Bank

DCB Bank provides competitive FD interest rates, with the highest being 8.05% per annum for general depositors on tenures of 19 to 20 months. Senior citizens are eligible for an additional 0.50%, bringing their rate to 8.55% per annum. These rates have been in effect since February 14, 2025.

3. Ujjivan Small Finance Bank

Ujjivan Small Finance Bank has adjusted its FD interest rates, offering up to 8.25% per annum for general depositors and 8.75% for senior citizens on a tenure of 18 months. The revised rates have been applicable since February 21, 2025.

4. Bandhan Bank

Bandhan Bank offers attractive FD interest rates, with the highest being 8.05% per annum for general depositors on a 1-year tenure. Senior citizens receive an additional 0.50%, making their rate 8.55% per annum.

5. RBL Bank

RBL Bank provides a maximum FD interest rate of 8.00% per annum for general depositors on a tenure of 500 days. Senior citizens are offered an additional 0.50%, resulting in an interest rate of 8.50% per annum.

6. SBM Bank India

SBM Bank India offers an attractive FD interest rate of 8.25% per annum for general depositors on tenures above 18 months to less than 2 years and 3 days. Senior citizens receive an additional 0.50%, bringing their rate to 8.75% per annum.

7. YES Bank

YES Bank provides a maximum FD interest rate of 8.00% per annum for general depositors on an 18-month tenure. Senior citizens are eligible for an additional 0.50%, resulting in an interest rate of 8.50% per annum.

8. Canara Bank

Canara Bank offers competitive FD interest rates, with the highest being 7.90% per annum for senior citizens on tenures of 3 years and above to less than 5 years.

9. Bank of India

Bank of India provides FD interest rates up to 7.80% per annum for senior citizens on a tenure of 400 days.

10. HDFC Bank

HDFC Bank offers FD interest rates up to 7.40% per annum for general depositors on tenures of 4 years and 7 months (i.e., 55 months). Senior citizens are eligible for an additional 0.50%, bringing their rate to 7.90% per annum.

Impact of RBI's Repo Rate Cut

The RBI's recent 25 basis points reduction in the repo rate to 6.25% is anticipated to influence the interest rates offered by banks on various deposit schemes. While some banks may adjust their FD rates downward in response to the policy change, others might maintain or even increase rates to attract depositors. It's essential for investors to stay informed about these changes to make timely and beneficial investment decisions.

Considerations for Investors

When selecting an FD, investors should evaluate the following factors:

Tenure: Align the FD's duration with financial goals to ensure liquidity when needed.

Interest Rates: Compare rates across banks to maximize returns.

Premature Withdrawal: Understand the penalties associated with early withdrawals, as they can impact overall returns.

Safety: Opt for banks with high credit ratings to ensure the security of the investment.

As of February 2025, several banks in India continue to offer attractive FD interest rates, especially for senior citizens. Despite recent monetary policy adjustments, fixed deposits remain a viable investment option for those seeking stable and secure returns. Investors are advised to stay updated on the latest rates and assess their financial objectives before making investment decisions.

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