Home / Business and Economy / Unlock Savings: Top Banks Offer Highest FD Rates in 2025
Unlock Savings: Top Banks Offer Highest FD Rates in 2025
11 Sep
Summary
- Tiny 50 bps difference in FD rates can lead to significant returns
- ICICI Bank offers highest rates for 2-year+ FDs
- Federal Bank and Union Bank offer 6.40% to regular, 6.90% to seniors
In September 2025, savers looking to lock in their funds in fixed deposits (FDs) have a prime opportunity to maximize their returns. Banks across India are currently offering the highest FD interest rates seen in recent years.
According to the latest industry analysis, a small difference of just 50 basis points (bps) in FD rates can lead to a substantial difference in overall earnings over the long term. For instance, an FD of ₹10 lakh placed for 5 years at 6.50% interest would earn ₹5,000 more per year compared to a 6% rate offered by another bank.
Among the top banks, ICICI Bank stands out by providing the highest interest rates on FDs of 2-year tenure or longer. This private sector lender is offering 6.75% to senior citizens and 6.25% to regular customers on 1-year to 18-month FDs.
Other leading banks like Kotak Mahindra, Axis Bank, Federal Bank, and Union Bank of India are also highly competitive, offering 6.25-6.40% to regular savers and 6.75-6.90% to senior citizens on 1-year FDs. These rates came into effect in the past month, making now an opportune time for investors to lock in their savings.
With such attractive FD rates available, savvy savers have a chance to significantly boost their earnings in the coming years by carefully comparing the offerings across banks and selecting the most lucrative option.
