FD Rates 2025: Which Bank Offers the Highest Interest on 2-Year Fixed Deposits? Check Full List
FD Rates September 2025: For short-term financial goals, Fixed Deposits (FDs) remain one of the most reliable investment options. They are not only safe but also guarantee fixed returns. A 2-year FD is considered ideal for investors seeking higher interest in a relatively short period. Several private and public sector banks are currently offering attractive interest rates. Here’s a comparison of how much your ₹1 lakh FD can grow in two years.
Highest Interest Among Private Banks
-
IndusInd Bank
-
Interest Rate: 7%
-
Maturity Value: ₹1,14,000 (on a ₹1 lakh deposit)
-
Currently the highest FD rate among private banks for a 2-year tenure.
-
-
Axis Bank, HDFC Bank, Kotak Mahindra Bank
-
Interest Rate: 6.6%
-
Maturity Value: ₹1,13,200
-
-
ICICI Bank
-
Interest Rate: 6.4%
-
Maturity Value: ₹1,12,800
-
Leading Public Sector Banks
-
Bank of Baroda (BoB) & Punjab National Bank (PNB)
-
Interest Rate: 6.6%
-
Maturity Value: ₹1,13,200
-
These two PSU banks are offering the best FD rates in the public sector category.
-
-
Canara Bank & Union Bank of India
-
Interest Rate: 6.5%
-
Maturity Value: ₹1,13,000
-
-
State Bank of India (SBI)
-
Interest Rate: 6.45%
-
Maturity Value: ₹1,12,900
-
Despite being India’s largest lender, SBI offers slightly lower returns compared to peers.
-
Key Takeaways for Investors
-
Among private banks, IndusInd Bank tops the chart with 7% interest on a 2-year FD.
-
In the public sector, BoB and PNB are offering the most competitive rates at 6.6%.
-
Investors should not only look at interest rates but also consider banking convenience, credibility, and personal financial goals before locking funds.
✅ Bottom Line: If maximizing returns is your top priority, IndusInd Bank offers the best deal at 7% for a 2-year FD. Among public banks, Bank of Baroda and PNB are attractive options at 6.6%. However, it’s always wise to align your FD choice with liquidity needs and overall portfolio strategy.
