Before opening a fixed deposit (FD) account with a bank, it is important to compare the interest rates of different banks. One could argue that most banks offer almost similar interest rates, but even a small difference of, say, 50 basis points can lead to a significant change in the total earnings.
For instance, a difference of 50 basis points on a fixed deposit of 10 lakh for three years can lead to an extra income of ₹15,000. Now, imagine if the amount of deposit is ₹20 lakh, the extra income earned could be ₹30,000.
Here we compare the highest interest rates offered by different banks:
FD interest rates offered by top banks
HDFC Bank: Thelargest private bank offers 6.6 percent for tenure between 18-21 months to regular investors and 7.10 percent to senior citizens. These rates came into force from 25 June.
ICICI Bank: Thisprivate lender offers 6.6 percent for tenure above 2 years for regular investors and 7.10 percent for senior citizens.
Kotak Mahindra Bank: The highest interest rate for Kotak Mahindra Bank is also 6.6 percent for regular citizens and 7.1 percent for senior citizens for tenure between 391 days to 23 months. These rates came into force with effect from 20 August.
State lenders
Union Bank of India: The state lender offers 6.6 percent per annum for three years. These rates came into force on 20 August.
State Bank of India (SBI): Thelargest lender offers 6.45 percent interest for tenure between 2-3 years to regular citizens and 6.95 percent to senior citizens. These rates came into effect on 15 July 2025.
Bank of Baroda: Thisstate lender offers 6.60 percent as part of the BOB Square Drive Deposit Scheme (444 days)for regular depositors and 7.10 percent for senior citizens. These rates came into force on 12 September 2025.
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