Top 10 Fixed Deposit Schemes in 2025 Offering Up to 9% Interest
Fixed deposits continue to be one of the most trusted investment options in India, especially among conservative investors who prefer guaranteed income and low risk. Even in 2025, FDs hold a major share of household savings as they offer a predictable return, capital safety, and simple management. With many banks especially small finance banks offering returns of up to 9% per annum, fixed deposits have regained strong interest from those seeking a stable income stream.
Why Fixed Deposits Still Matter
The main reason investors choose fixed deposits is the assurance of steady and secure returns. Unlike stocks or mutual funds, FD earnings are fixed and not affected by market movements, providing peace of mind to risk-averse individuals. Senior citizens benefit further, as many banks offer an additional 0.25% to 0.50% interest rate boost for them.
Fixed deposits are also easy to manage, requiring minimal monitoring. Although premature withdrawals may attract penalties, FDs remain a practical choice for retirees, salaried individuals, and conservative investors who value simplicity and security.
Current FD Interest Rates in 2025
Interest rates on fixed deposits have become more competitive this year. Small finance banks are leading the pack by offering higher rates compared to major public and private sector banks. These institutions often provide top rates for tenures ranging between two and five years. Shorter-term deposits, while offering slightly lower returns, are still appealing due to flexibility.
Some banks periodically launch special promotional FDs with enhanced rates for limited periods. While these high returns are attractive, investors should also factor in taxation and inflation to assess their real gains.
Top Banks Offering High FD Rates
Unity Small Finance Bank is one of the most attractive options in 2025, offering around 9% interest per annum for deposits of about 1,000 days. Senior citizens can earn even higher returns on the same tenure. NorthEast Small Finance Bank also offers close to 9% for terms between 18 months and three years.
Suryoday Small Finance Bank, known for its promotional offers, has in previous months extended rates above 9% for select tenures, primarily targeting senior citizens. Utkarsh Small Finance Bank maintains competitive rates of around 8.5% for medium-term deposits, while Jana Small Finance Bank provides about 8.25% for similar tenures.
Equitas, Ujjivan, and AU Small Finance Banks follow closely with interest rates ranging from 8% to 8.5%. Their deposit products include features like online account management, loan against FD, and flexible payout options.
Public and Private Sector Bank FDs
Public sector banks remain the most trusted institutions for FD investors due to their government backing. Their rates, however, generally remain below 8%, except during special schemes. Senior citizens enjoy a modest rate hike, making these banks ideal for those prioritizing safety over higher returns.
Large private banks, on the other hand, offer enhanced digital convenience and flexible tenure structures. While their rates are slightly lower than small finance banks, they attract customers with features like auto-renewal, online booking, and instant liquidity options.
Safety and Risk Considerations
Security of the invested capital remains a top concern for FD investors. Under DICGC insurance, deposits up to ₹5 lakh per depositor per bank are insured, covering both principal and interest. Spreading deposits across multiple banks ensures the total amount remains protected under this limit.
Before locking funds, investors should also review the bank’s financial health, RBI supervision, and credit ratings. While small finance banks offer high returns, they may carry marginally higher risk compared to long-established banks.
Important Investment Factors
Higher interest rates often come with longer lock-in periods. Investors should consider their liquidity needs before committing. Premature withdrawals can reduce returns, and taxation on interest income lowers overall profit. Inflation, too, can erode the real purchasing power of the earned interest.
Those needing periodic income can opt for monthly or quarterly interest payout options instead of cumulative FDs. This makes it easier to manage expenses without breaking the deposit early.
Comparison of Top FD Interest Rates 2025
| Bank Name | Regular FD Rate (Approx.) | Senior Citizen Rate (Approx.) | Tenure Range | Safety Rating |
|---|---|---|---|---|
| Unity Small Finance Bank | 9.00% | 9.50% | 1000 days | Moderate Risk |
| NorthEast Small Finance Bank | 8.90% | 9.40% | 18–36 months | Moderate Risk |
| Suryoday Small Finance Bank | 9.10% (Promo) | 9.60% | 2–5 years | Moderate Risk |
| Utkarsh Small Finance Bank | 8.50% | 9.00% | 2–3 years | Moderate Risk |
| Jana Small Finance Bank | 8.25% | 8.75% | 2–3 years | Moderate Risk |
| Equitas Small Finance Bank | 8.20% | 8.70% | 1–3 years | Moderate Risk |
| Ujjivan Small Finance Bank | 8.10% | 8.60% | 1–3 years | Moderate Risk |
| AU Small Finance Bank | 8.00% | 8.50% | 1–3 years | Moderate Risk |
| SBI (Public Sector) | 7.00% | 7.50% | 2–5 years | High Safety |
| HDFC Bank (Private) | 7.25% | 7.75% | 2–5 years | High Safety |
Final Thoughts
For 2025, small finance banks like Unity, NorthEast, and Suryoday clearly lead the race with interest rates nearing 9%. These FDs are especially rewarding for senior citizens due to added bonuses. Public and private banks remain reliable choices for those valuing safety and stability over maximum returns.
To optimize earnings and reduce risk, investors should diversify across banks, stay updated on rate changes, and match FD tenures with their financial goals. Fixed deposits, when chosen carefully, continue to serve as a dependable pillar of long-term financial planning and stable income.
