FD interest rates: Before you open a fixed deposit account, it is recommended that you compare the interest rates offered by different banks—both private and government-owned. Although most banks tend to offer similar interest rates, it is still better to compare them because even a marginal difference of 50 basis points can lead to a significant difference in interest over a period of time.
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For example, an extra interest of 0.5 per cent on a term deposit of ₹10 lakh leads to a higher interest (before tax) of ₹5,000 in one year.
Here, we compare the latest interest rates offered by different banks on their one-year term deposits.
These banks offer higher interest rates on FDs
HDFC Bank: The largest private bank offers 6.25 per cent on one-year fixed deposits to regular depositors and 6.75 per cent to senior citizens. These rates came into force on June 25, 2025.
ICICI Bank: This private lender also offers 6.25 per cent and 6.75 per cent to regular and senior citizens, respectively, on one-year fixed deposits.
Kotak Mahindra Bank: Kotak Mahindra Bank also offers 6.25 per cent and 6.75 per cent interest on one-year term deposits to regular and senior citizens, respectively.
| Bank | Regular (%) | Senior Citizen (%) |
|---|---|---|
| HDFC Bank | 6.25 | 6.75 |
| ICICI Bank | 6.25 | 6.75 |
| Kotak Mahindra | 6.25 | 6.75 |
| Federal Bank | 6.40 | 6.90 |
| SBI | 6.25 | 6.75 |
| Union Bank of India | 6.40 | 6.90 |
Federal Bank: This private bank offers 6.40 per cent and 6.90 per cent interest on one-year fixed deposits to regular and senior citizens, repectively. These rates came into force on August 18.
State Bank of India (SBI): The largest lender in India offers 6.25 per cent to regular citizens and 6.75 per cent to senior citizens, according to the interest rates that came into force on July 15, 2025.
Union Bank of India: This state lender offers 6.40 per cent to regular depositors and 6.90 per cent to senior citizens, as per the rates that came into force on August 20.
