In a time when every rupee of your hard-earned savings needs to work a little harder, fixed deposits (FDs) remain one of the most trusted tools in India. With the financial landscape in 2025 offering competitive interest rates, selecting a high-yield FD can help you grow your capital securely. Knowing the 10 most popular high-interest FDs available in 2025 helps you compare options and choose the one that aligns with your goals and timeframe.
What to Look For
Before we list the top offers, keep in mind the key features to check: the interest rate for the specific tenure, whether the rate is for general or senior citizens, the minimum deposit amount, and whether the FD is with a regular bank or a small finance bank. Interest rates may vary by tenure and deposit amount, so always confirm directly with the bank.
1. Suryoday Small Finance Bank – 7.40 % for 1-year
This small finance bank currently offers one of the highest standard rates for a 1-year FD for general citizens at 7.40% annually. It is worth considering if you are comfortable with a smaller bank but want a higher yield.
2. Jana Small Finance Bank / Ujjivan Small Finance Bank – 7.25 % for 1-year
Both these small finance banks offer around 7.25% for a one-year tenure for regular investors. They provide strong competition in the FD space, especially for shorter-term fixed deposits.
3. Union Bank of India – 7.00 % (399 days)
For a deposit tenure of around 399 days, this national bank offers 7.00% for general citizens. It offers the comfort of a large institution at a competitive rate for near one-year tenures.
4. Punjab & Sind Bank – 7.40% (444 days)
For a 444-day tenure, this bank offers 7.40% to the general public. It’s a good option for someone who can commit slightly over a year and wants a higher return.
5. Canara Bank – 7.45% (444 days)
Another strong contender, offering 7.45% for a 444-day FD for general usage. For slightly longer than one year, this one is worth consideration.
6. ESAF Small Finance Bank – 8.50% (2 years to <3 years)
Extending the tenure, this small finance bank offers up to 8.50% for a term of 2 to 3 years to general citizens. It demands a longer lock-in but offers an excellent return in the current environment.
7. Fincare Small Finance Bank – 8.51% (1,000 days)
Here is a very attractive rate at 8.51% for a deposit of 1,000 days (roughly 2 years, 9 months) for general citizens.
8. Equitas Small Finance Bank – 8.50% (888 days)
For a tenure of 888 days (about 2 years, 5 months), this bank offers an interest rate of 8.50%. A long-term FD that works for investors comfortable with a multi-year commitment.
9. Utkarsh Small Finance Bank – 8.25% (700 days to 2 years)
In the 700-day to two-year bracket, this bank offers 8.25% for general citizens.
10. Unity Small Finance Bank – 9.00% (1001 days)
One of the highest listed, for a 1001-day tenure, this bank offers 9.00% for general citizens. If you can commit to a nearly three-year lock-in, this may suit long-term savings goals.
Things to Keep in Mind
- Tenure matters: Higher rates often apply to longer tenures or to specified durations (for example, 700 days, 888 days, 1,000 days). Choose a tenure that fits your liquidity needs.
- Amount limits: Many banks mention rates for deposits below Rs 3 crore or similar thresholds. The rate may vary if the amount is higher.
- Senior citizen benefits: Senior citizens often receive an extra 0.25%- 0.50% or more. Although our list focuses on “general citizen” rates, if you are over 60, you may check the senior citizen rate.
- Bank size and risk: Small finance banks may offer higher rates to attract deposits. Many are well regulated and insured under the Deposit Insurance and Credit Guarantee Corporation up to Rs 5 lakh, but you should ensure you are comfortable with the institution and the terms.
- Premature withdrawal and break-in: Longer tenures often mean lower flexibility. If you withdraw early, you may lose part of the interest or incur a penalty.
- Tax implication: Interest earned on FD is taxable as per your income tax slab. TDS may apply if interest crosses a threshold. So plan your tax accordingly.
Conclusion
In 2025, you have plenty of options when it comes to high-interest fixed deposits. If you are looking for short-term (around 1 year) safe savings, banks offer rates of 7% to 7.5%. If you can commit for longer (2–3 years or more), you may achieve 8% or above, sometimes up to 9% for specific tenures in small finance banks.
Pick the FD that matches your desired tenure, investment amount, and your comfort with the institution. With the right deposit in place, you can let your savings grow steadily, stay secure, and make your money work for you.
